The Energy Availability Factor (EAF) in South Africa, which measures the performance of the country's power plants, has dropped to 50% at the beginning of the current year, according to a report published on Friday, March 1st, 2024, by the National Treasury.
"The main cause of the low EAF is the dysfunctional management system of the state-owned electricity company (Eskom)," notes the report, which evaluated the performances of coal-fired power plants in a context marked by a persistent electricity crisis weighing heavily on businesses and households.
South Africa has been grappling with power outages for more than a decade due to aging and poorly maintained thermal power plants, as well as widespread corruption plaguing Eskom.
This crisis reached an unprecedented scale in 2023, with drastic power cuts imposed by Eskom to protect the system from collapse, reaching up to 12 hours per day.
According to the report, the state-owned company finds itself in a desperate situation, as operational and financial challenges continue to be felt.
The document thus points out that Eskom is burdened by inefficient processes, particularly in procurement, and a lack of authority and transparency on the part of decision-makers.
Similarly, it indicates that while the government attempts to address the power outages, the energy availability index will not meet Eskom's target of 65% for 2024.
The electricity crisis is severely impacting the South African economy. According to government figures, it costs the country 1 billion rand per day (over 50 million dollars).
The South African Reserve Bank (SARB) estimates that this situation has reduced the country's economic growth forecasts for 2023 by two percentage points.
