Eskom Saves R9 Billion in Diesel Costs Amid Extended Load Shedding Relief

During a media briefing on Monday, Dr. Kgosientsho Ramokgopa, Minister of Electricity and Energy, highlighted that the reduction in diesel use is directly tied to Eskom’s improved Energy Availability Factor (EAF).

Eskom has achieved a notable reduction of approximately R9 billion in diesel expenditure from April 1, 2024, to August 7, 2024, compared to the same period last year. This significant saving comes as the power utility has managed to avoid load shedding for over 135 days and has reduced its dependence on Open Cycle Gas Turbines (OCGTs), which rely on diesel for energy production.

During a media briefing on Monday, Dr. Kgosientsho Ramokgopa, Minister of Electricity and Energy, highlighted that the reduction in diesel use is directly tied to Eskom's improved Energy Availability Factor (EAF). "An increased EAF means a decreased reliance on Open Cycle Gas Turbines, leading to lower diesel consumption. Since the start of the financial year, we have reduced diesel use by 73%, resulting in a savings of about R9.6 billion compared to last year," he explained.

This reduction in diesel expenditure not only benefits Eskom's financial health but also enables reinvestment into infrastructure and operations. "This savings improves Eskom's balance sheet and liquidity, allowing us to reinvest in our generating units and continue the positive momentum," Ramokgopa added.

The Minister also noted that Eskom's current use of OCGTs has dropped significantly. Since April 1, the power utility has relied on OCGTs only about 4% of the time, a substantial decrease from the 20.6% usage during the same period last year. This indicates a shift towards a more stable energy supply.

Ramokgopa expressed confidence in the progress, attributing the improvements to the Energy Action Plan introduced by President Cyril Ramaphosa in 2022. "The results are promising, and the improvements are evident. Our interventions are proving effective, and households are starting to experience the benefits," he concluded.