Eskom Enters 2026 with Structurally Stronger Power System, Citing Five-Year Turnaround

Eskom Group Chief Executive Mr Dan Marokane said the overarching outcome of the recovery plan is a fundamental shift in the health of the power system.

Eskom has announced that it has entered 2026 with a “structurally stronger system” than at any point in the past five years, attributing this improvement to the sustained implementation of its Generation Recovery Plan, which began in April 2023.

According to the power utility, Eskom now has an additional 4,400 MW of available generation capacity compared to the same period last year, marking a significant step toward stabilising South Africa’s electricity supply.

From Constraint to Stability

Eskom Group Chief Executive Mr Dan Marokane said the overarching outcome of the recovery plan is a fundamental shift in the health of the power system.

“The big picture through the peaks and troughs of delivering the Generation Recovery Plan is that Eskom has moved from a heavily constrained power system to an increasingly stable one, a power system that can reliably deliver 24/7, 365 baseload power,” Marokane said.

He emphasised that the progress reflects difficult but necessary decisions taken over the past two years to restore operational reliability.

Key Performance Improvements

Eskom highlighted several measurable gains resulting from the implementation of the Generation Recovery Plan:

• Energy Availability Factor (EAF) increased from 56.03% to 64.55%

  • From 1 April 2025 to date, the fleet has achieved or exceeded the 70% benchmark on 55 occasions

• Scheduled maintenance (Planned Capacity Loss Factor – PCLF)

  • Peaked at 12.76% in FY 2025 following an intensive maintenance period

  • Currently at 9.32%, trending toward global best practice levels

• Unplanned Capacity Loss Factor (UCLF)

  • Reduced significantly from 31.92% to 16.02%

• Diesel cost savings

  • Approximately R16 billion saved in FY 2025

  • Continued reductions in FY 2026 due to improved coal fleet reliability and reduced reliance on open-cycle gas turbines (OCGTs), which are now used primarily for emergency support

Focus on Sustaining Gains

Marokane said Eskom’s priority is now to maintain and build on these early gains through disciplined operational management and long-term sustainability.

“It has been ‘short-term pain for long-term gain’, 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,” he said.

Impact of Government Debt Relief

Eskom also acknowledged the importance of the R254 billion government debt relief package, which has significantly eased pressure on the utility’s balance sheet. The support has enabled Eskom to:

• Undertake essential maintenance

• Invest in fleet reliability and performance improvements

• Reduce financial risk and operational constraints

Investor Confidence and Economic Signals

Marokane noted that a reliable power system extends beyond megawatts and directly affects investor confidence.

“The impact of Eskom’s improved performance has contributed towards South Africa receiving its first credit rating upgrade in two decades, and the risk rating on Eskom’s 2033 bonds has declined, providing early indicators that investors are warming to Eskom’s turnaround,” he said.

Strengthening Energy Security

Eskom’s improved performance heading into 2026 signals a meaningful shift toward a more stable, reliable, and financially sustainable electricity system. While challenges remain, the utility maintains that the progress achieved through the Generation Recovery Plan provides a stronger foundation for long-term energy security and economic growth in South Africa.