This year, South Africans are experiencing less loadshedding despite having the same energy availability factor (EAF) as last year.
Also read: Eskom: No loadshedding this week, after 18 days without power cuts
The country has also experienced fewer unexpected power failures compared to last year. However, an increase in planned maintenance outages has offset this improvement.
According to energy analyst Chris Yelland, the reason for the noticeable decrease in loadshedding is lower demand – businesses and households are using less power derived from Eskom.
Instead, alternative sources of electricity, such as rooftop solar and commercial installations, are supplementing the national power utility’s electricity generation, Daily Investor reports.
‘It is quite clear that demand for Eskom’s electricity is declining and has been for several years. This does not mean the country is using less electricity. It just means it is not coming from Eskom,’ says Yelland.
As a result, Eskom can conduct more maintenance as it does not need to produce as much electricity as before.
Yelland says this trend is poised to accelerate in the wake of increasing electricity costs, which could strengthen businesses’ search for alternative sources of electricity.
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Due to this, the utility will have to compete with private energy providers while ongoing reforms work in favour of the private sector and open the competition on ‘a level playing field’, says Yelland.
For example, the Electricity Regulation Amendment (ERA) Bill, which is currently in Parliament, could enable the private sector to expand its offerings.
This does not mean that Eskom will be privatised, but that its assets would likely be financed, operated and maintained by private companies, Yelland adds.
‘This is a welcome step forward because things cannot continue the way they have been. I think the momentum growing on the restructuring and reform of Eskom is very important.’
‘The opening up of this industry for the private sector to play its rightful role is vital.’
If the situation continues, South Africa might become free of loadshedding, he says.
‘The problem of load-shedding can be resolved. We just have to do the right things for a long time and put this industry in the right place. It looks to me like it is heading that way.’
‘Longer-term, I believe that if we do the right thing, as we are at the moment and not be distracted, we can solve this problem and create a country where electricity is not a stumbling block to investment.’
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Picture: Misha Jordaan / Gallo Images