South Africa's power supply crisis

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15 May 2015

South Africa's power supply crisis

Report summary

South Africa is in the midst of a power supply crisis. Years of under investment in new generation capacity and insufficient maintenance of existing assets means that the incumbent power producer, Eskom, is no longer able to guarantee security of supply. A programme of load shedding was initiated in late 2014 and South African consumers are now going without electricity on a regular basis.

Table of contents

  • Executive summary
    • Keeping the lights on at all costs...
    • Challenges with the construction of new capacity
    • Eskom's financial challenges
    • South Africa needs investment from independent power producers (IPPs)
      • Coal could be a straightforward option for new base-load supply, but on the right terms
      • Interest in the South African renewable sector is growing and costs are falling rapidly
      • Gas-to-power is an option, but new import infrastructure will be required
      • New nuclear capacity is very expensive, but a potential solution in the longer-term
    • Conclusion

Tables and charts

This report includes 5 images and tables including:

  • Eskom plant availability
  • South Africa's power supply crisis: Image 2
  • South Africa reserve margins
  • South Africa's power supply crisis: Table 1
  • South Africa capacity - Wood Mackenzie v IRP

What's included

This report contains:

  • Document

    South Africa's power supply crisis

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