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Eskom\u2019s power grid enters 2026 in better shape than at any time in the last five years, says the state-owned utility.<\/p>\n
This is the result of a Generation Recovery Plan that commenced in April 2023, the fruits of which are now evident with 4 400MW of additional generation capacity available compared to a year ago.<\/p>\n
Read:<\/p>\n
\u201cStability is reflected not only in terms of structural improvements in the generation fleet, but in fewer emergency interventions and improved maintenance discipline,\u201d says Eskom.<\/p>\n
Busi Mavuso, CEO of Business Leadership SA (BLSA), says SA kicks off 2026 in the best position it\u2019s been for years, thanks in part to much improved grid stability.<\/p>\n
What\u2019s needed now to get economic growth above the 2% a year level, which has not been achieved in a decade, is to:<\/p>\n
Read:
Traxtion kickstarts private SA\u00a0rail boom with R3.4bn\u00a0investment [Dec 2025]
SA\u2019s municipal electricity failure,\u00a0a structural economic risk [Jan 2026]
Ramaphosa names new chief\u00a0prosecutor to fight graft [Jan 2026]<\/p>\n
The noticeable improvements in Eskom grid stability is key to achieving higher GDP growth. Eskom\u2019s Energy Availability Factor (EAF) has shown sustained improvement, rising to 64.55% from 56.03% in April 2025. Over the last nine months the generation feet exceeded the 70% EAF benchmark on 55 occasions.<\/p>\n
Improvements<\/strong><\/p>\n Eskom\u2019s Unplanned Capacity Loss Factor (UCLF) has shown dramatic improvement, halving over the last nine months to 16.02% from 31.92%.<\/p>\n ADVERTISEMENT<\/p>\n CONTINUE READING BELOW<\/p>\n<\/div>\n<\/div>\n Unplanned outages hit 33% UCLF during the peak of load shedding in 2023, mainly due to unexpected breakdowns and system failures.\u00a0A healthy UCLF is typically below 10-15%, while any figure above 25% can trigger severe load shedding.<\/p>\n Savings from diesel usage in the 2025 financial year were around R16 billion and continue to decrease in the current financial year due to the reliability of the coal fleet increasing. This reduced the need to fire up the open-cycle gas turbines (OCGTs) which are used for emergency support.<\/p>\n Eskom has moved from a heavily constrained power system to one that can reliably deliver 24\/7 baseload power throughout the year, says Eskom group chief executive Dan Marokane in a statement.<\/p>\n<\/blockquote>\n \u201cWe will now maintain and build upon these early gains through a rigorous focus on operational reliability and sustainability. It has been \u2018short-term pain for long-term gain\u2019, and I would like to thank the country for its understanding and support, as well as our employees for continuing to deliver on our strategy.\u201d<\/p>\n Read: Critical balancing act required for Eskom to meet demand in the coming five years<\/p>\n The Eskom Debt Relief Act, passed in 2023 provided R254 billion to reduce financial pressure on Eskom\u2019s balance sheet.<\/p>\n This enabled Eskom to make vital investments and conduct planned and preventive maintenance, improving operational efficiency and reliability, the results of which SA is experiencing today, says Marokane.<\/p>\n Regional energy markets<\/strong><\/p>\n Grid stability can be further improved by better integration of regional energy markets, according to the African Energy Chamber (AEC) State of African Energy 2026 Outlook.<\/p>\n \u201cBy developing larger, interconnected markets, nations can create alternative offtake solutions, reduce project risks and enable economies of scale,\u201d says the AEC report.<\/p>\n ADVERTISEMENT:<\/p>\n CONTINUE READING BELOW<\/p>\n<\/div>\n<\/div>\n Five regional power pools have been established across the continent \u2013 Southern Africa, Eastern Africa, Western Africa, Central Africa and North Africa \u2013 to facilitate cross-border electricity trade, share resources and coordinate energy policies.<\/p>\n Read: Nersa approves cross-border\u00a0electricity trading [Oct 2024]<\/p>\n The Southern African Power Pool (SAPP) is the most advanced, supported by a sophisticated institutional framework, strong grid interconnection and a transparent electricity market.<\/p>\n But even here there is room for improvement, says the AEC. Just 7.7TWh (terawatt hours) were traded over the SAPP, roughly 2% of total demand of 344TWh.<\/p>\n<\/blockquote>\n About 80% of this power trade comes from bilateral contracts with just 13% from the day-ahead market (DAM), a short-term market that allows for better forecasting and planning. This 13% compares with more than 24% in DAM trade in Europe.<\/p>\n SA is transitioning from Eskom\u2019s single buyer monopoly to a competitive multi-market model under the South African Wholesale Electricity Market (SAWEM), managed by the National Transmission Company of South Africa (NTCSA) as the Transmission System Operator and Market Operator.<\/p>\n The day-ahead market forms a key part of SAWEM, which will be phased in this year.<\/p>\n The improvement in Eskom\u2019s operational performance contributed to SA receiving its first credit rating upgrade in 20 years.<\/p>\n Read:<\/p>\n The risk rating associated with Eskom\u2019s 2033 bonds also dropped, \u201cproviding early indicators to investors warming to the turnaround,\u201d said Marokane.<\/p>\n Follow Moneyweb\u2019s in-depth finance and business news on WhatsApp here.<\/em><\/p>\n<\/p><\/div>\n\n
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