Latest news with #Marokane
The South African
28-05-2025
- Business
- The South African
A flicker of light for Eskom, but load shedding still a risk
Fitch Ratings has affirmed Eskom's long-term credit rating and upgraded its Standalone Credit Profile (SCP) from 'ccc-' to 'ccc+'. This signals improving operations and finances, which is positive news. A CCC+ rating simply means that the company is still in a very risky financial position, but it's doing slightly better than before. It's a small step up, but it still signals that there's a real chance it could struggle to pay its debts. Fitch upgraded Eskom's credit rating because the company has improved its operations and expects to see a significant rise in earnings before interest, taxes, depreciation, and amortisation (EBITDA) from 2025 to 2029. This indicates that Eskom's generation units are performing better, which is important after years of poor performance and frequent blackouts. The agency has confirmed Eskom's long-term local currency Issuer Default Rating (IDR) is at 'B' with a stable outlook. It also confirmed Eskom's senior unsecured debt rating at 'B' (with a Recovery Rating of 'RR4') and its senior unsecured guaranteed debt at 'BB-'. This shows increased confidence in Eskom's operations and its strong relationship with the government. Eskom's Group Chief Executive, Dan Marokane, welcomed the news that Fitch has affirmed and improved the power utility's credit rating. He said this shows Eskom's commitment to improving its financial and operational performance. Marokane emphasised that the company's main goal is to reduce its dependence on government support by working towards long-term financial stability. This development brings some hope that the end of Eskom's load shedding may be getting closer, but there are still many challenges ahead. Remaining Challenges and Public Impact A recent upgrade in Eskom's credit rating shows some progress in its recovery efforts. This upgrade suggests that investor confidence is improving. However, the positive impact on the public will depend on better electricity delivery, less reliance on government support, and clear improvements in service performance. Let us know by leaving a comment below or send a WhatsApp to 060 011 021 1. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X, and Bluesky for the latest news.
The South African
09-05-2025
- Business
- The South African
14-hour power outage to affect parts of Gauteng on Tuesday
Residents of Dobsonville Extension 3 in Soweto will experience a planned power outage on Tuesday, 13 May, from 9:00 to 23:00. Eskom confirmed the outage will allow for 'essential maintenance on our distribution power lines,' as the utility continues efforts to stabilise its infrastructure. Eskom advised residents to prioritise safety during the 14-hour power outage. 'In the interest of safety, customers are advised to treat all electrical appliances as live at all times during the power supply outage,' the power utility said in a statement. Additionally, it also thanked residents for their cooperation and apologised for the inconvenience. The planned maintenance may be delayed if unforeseen challenges arise. At a media briefing in Johannesburg, Eskom Group Chief Executive Dan Marokane outlined the company's outlook for winter 2024/2025. Marokane revealed optimism for reduced load shedding compared to previous years. He attributed the improved forecast to better operational performance and a drop in unplanned outages. 'If outages increase to 15GW, load shedding would be limited to a maximum of 21 days out of 153 days at stage 2 – an improvement over the prior winter's worst-case prediction of stage 5 load shedding,' Marokane stated. Furthermore, this winter, Eskom expects unplanned outages to range between 13 and 15GW, down from last year's 14–17GW forecast. Last winter saw no load shedding, with average unplanned outages sitting at 12.3GW — well below projections. Boosted Capacity and Maintenance Synergy Eskom has indicated that additional generating capacity is expected to come online. That will help cushion against possible spikes in demand. The utility's confidence in maintaining power supply without resorting to severe load shedding rests on keeping unplanned outages under the critical 13GW threshold. In addition, Marokane explained that the 3.1GW drop in unplanned outages has contributed significantly to the more favourable outlook. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
The South African
07-05-2025
- Business
- The South African
Eskom warns loadshedding could return this winter: Here's when
As South Africa braces for the colder months ahead, Eskom has revealed that loadshedding could return this Winter. While the utility believes it can maintain uninterrupted power supply, it has warned that loadshedding could make an unwelcome comeback if unplanned outages exceed critical thresholds. According to the latest projections, South Africans could avoid the frustration of scheduled power cuts if unplanned outages remain below 13GW. However, should these outages climb to 15GW, we could face up to 21 days of Stage 2 loadshedding. That is a scenario that, while disruptive, still represents significant progress compared to last year's worst-case projection of Stage 5. 'We've seen meaningful improvements in system reliability,' notes Dan Marokane, Eskom's Group Chief Executive. 'But we're not out of the woods yet.' Marokane highlighted particular concerns about the period from January to April 2025, which presented unexpected challenges for the utility. The outlook reflects Eskom's ongoing recovery efforts, with unplanned outages dropping by an encouraging 3.1GW compared to Winter 2024. This year's forecast anticipates unplanned outages between 13 and 15GW, down from last year's range of 14 to 17GW. The utility has also ramped up its planned maintenance schedule, increasing maintenance activities to 12.8% for the 2025 financial year, up from 12% in the previous year. This proactive approach aims to strengthen the grid's resilience during peak demand periods. For ordinary South Africans, the question remains: are your backup plans in place should Eskom falter in meeting these targets? While the utility's performance has certainly improved, prudent households might still want to keep those emergency lights charged and alternative cooking methods at hand, just in case. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
Daily Maverick
05-05-2025
- Business
- Daily Maverick
Eskom bets on 13 GW ceiling to deliver a load shedding‑free winter
Eskom's winter outlook says zero load‑shedding is achievable if surprise breakdowns stay below 13 GW. The worst‑case 15 GW scenario would trigger 21 days of Stage 2 cuts. Notwithstanding five separate 'periodic episodes' of load shedding interrupting Eskom's much improved performance, chief executive Dan Marokane says South Africa can expect a load shedding‑free winter provided unplanned outages stay below 13 GW. Should breakdowns edge up to 15 GW, Eskom forecasts no more than 21 days of Stage 2 cuts – a scenario two stages milder than last winter's worst‑case outlook. Marokane, with the Eskom executives and Minister of Electricity and Energy Dr Kgosientsho Ramokgopa, revealed the utility's winter outlook on Monday, 5 May. Of the upcoming winter peak demand season, he said, 'To date, with the progress that we have made with regard to the performance of our fleet, in as far as the winter 2025 is concerned, it is premised on unplanned outage scenarios that have been revised downwards to a range of 13 gigawatts to 15 gigawatts of unplanned losses. 'This is a two-gigawatt range lower than the last assumption base that we used last winter', said Marokane, in what could be interpreted as 'an indication of the confidence that we are having in the fleet' as the country moved through summer and the winter forecast scenarios. 'And for us, in terms of what we see coming from the performance of the fleet for a situation where the unplanned losses remain below 13,000 megawatts, which is 13 gigawatts, we see no load shedding for the winter period. 'At worst, if the unplanned losses escalate to 15,000 [MW], we expect to have no more than 21 days of up to Stage Two load shedding,' he said. 'That's the key message that we want to deliver on the back of the performance and the work that we have done through the maintenance season as we see it.' Put differently, Eskom is confident that there will be no load shedding until the end of August, barring any failures or unplanned capacity losses at its fleet that take away more than 13GW of capacity. The minister went a step further on Monday, saying that the country and Eskom were transitioning their relatively narrow focus on ending load shedding toward a greater, broader focus on transitioning toward energy security. Energy security 'We are transitioning now from ending load shedding, we are transitioning to energy security. And that's why when you have periodic episodes of load shedding, it's a significant setback.' Ramokgopa said that South Africans, in due course, would learn about the government's plans to end load reduction as part of its drive towards energy security. 'You will see that now we're getting to a point where we'll be saying 'we're ending load shedding' and then we're transitioning into energy security and then that energy security means that we'll not have something called load reduction. 'We'll occasion a different briefing where I'll be sharing with the rest of the country – the plans are done now – on how we're going to end load reduction, working with municipalities and affected communities. The poor will be taken care of and then we and then we're going to end an era of load reduction,' he said. Maintenance focus Though the news was largely positive, it was also measured, with the executives stressing that the the ongoing focus on maintenance did leave the system with less capacity to respond to unplanned losses and that other factors such as inclement weather could lead to spikes in demand as users who would otherwise rely on rooftop solar would suddenly have a greater need for Eskom-supplied electricity for more of their household use. 'Are we where we want to be? We are not where we want to be,' said Marokane. 'We use the OCGTs (Open Cycle Gas Turbines) very tactically to support the period that have … high vulnerabilities for us, and once we have all the capacities at full steam, you will see the diesel expenditures also going down quite significantly. With additional capacity available, we'll be able to get ourselves through to the space.' 'We have to continue our focus on fixing our existing fleet because therein lies the easiest and quickest way of increasing our energy security, and our focus needs to remain on that,' said the CEO, adding that more capacity coming online in the next weeks and months would create a level of comfort. Minister Ramokgopa said that a Kusile unit would be back online by the end of May, after Units 2 and 3 recently came online, adding to the capacity needed over the winter peak demand period. The minister also said that 'sometime during the winter', Eskom would also bring back Medupi Unit 4, which has been out of service for a few years. 'So we'll get approximately 800MW in the middle of winter that we didn't have over the past four years or so.' Koeberg Unit 1, which was taken out of service as part of the requirement for the long-term operation licence as required by the regulator, is due to return around June, said the minister. 'But the point I'm making is that then we'll have, during this period, 2,500 additional megawatts from your baseline relative to what was the case when we announced the last winter outlook.' DM
IOL News
05-05-2025
- Business
- IOL News
Eskom's winter 2025 plan: Stable grid, fewer outages, and no stage 5 blackouts in sight
Eskom has pledged to keep the country warn this winter, warned that should demand increase, Stage 1 and 2 rolling blackouts may still be implemented. Image: Itumeleng English / Independent Newspapers Power utility Eskom has vowed to keep the country warm this winter, saying the national electricity grid is stable, maintenance is progressing, and emergency reserves are in place. However, should demand increase, Stage 1 and 2 rolling blackouts may still be implemented. 'For winter 2025, loadshedding is not expected if unplanned outages remain below 13GW. If outages increase to 15GW, loadshedding would be limited to a maximum of 21 days out of 153 days at Stage 2, an improvement over the prior winter's worst-case prediction of Stage 5 loadshedding,' said Eskom Group Chief Executive Dan Marokane during a media briefing on Monday. Marokane said the improved winter outlook is due to a 3.1GW decrease in unplanned outages compared to the previous year. 'As a result, the forecast range has been lowered to 13–15GW, down from 14–17GW in winter 2024,' he said. 'Last winter had no loadshedding, with average unplanned outages at 12.3GW, significantly below the winter 2024 base-case projection of 14GW.' Marokane said this year's winter outlook is based on an improvement in operational performance and overall efficiency. 'Loadshedding was lower in Eskom's last financial year (FY 2025) than in the previous two years. In FY 2025 we delivered power 96% of the time, in the previous year the figure was just 9.9%,' he said. 'Our diesel open-cycle gas turbines were utilised approximately 50% less in FY 2025 compared to the two previous financial years, saving around R16 billion,' Marokane added. 'Against this progress, we have seen some setbacks in operational excellence, as evidenced by the recent loadshedding requirements between January to April 2025,' he added. 'A targeted plan has been put in place to reinforce operational discipline and accelerate recovery initiatives to address the root causes related to the recent loadshedding events.' Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Marokane said the winter outlook is based on a number of key performance indicators, including a 3.1GW year-on-year decrease in unplanned outages, which has enhanced available generation capacity. Between May 2023 (18GW) and April 2025 (13.5GW), there was a significant 4.5GW reduction, reflecting improved plant performance. He said the summer average of 12.5GW in unplanned outages was better than the forecasted base case of 13GW, despite some units being reclassified from planned to unplanned outages due to overruns in scheduled maintenance. 'Planned maintenance for FY 2025 reached 12.8%, up from 12% in the previous year, marking a 0.8% increase. Between September and March, maintenance activity averaged 14.5%, compared to 14.07% during the same period the previous year and 11.8% in FY 2023, an increase of 2.7% compared to FY 2023.' 'This forward-looking approach contributes to enhanced winter preparedness and ensures compliance with environmental and regulatory requirements.' He said plant availability improved to 61% in FY 2024 and 2025, up from 54.6% the previous year, an approximately 6.5% year-on-year improvement. Eskom projects a notable increase in the Energy Availability Factor (EAF) as it completes the outstanding actions in its recovery plan. 'Diesel consumption dropped by approximately 50%, resulting in cost savings of approximately R16.51 billion year-on-year, reflecting a reduced reliance on emergency generation.' Marokane added: 'Sales volumes grew by approximately 3.6% year-on-year, driven by improved generation capacity, higher exports and reduced reliance on diesel'. He confirmed that Kusile Units 2 and 3 have been successfully reconnected to the main stacks and are now operating with the flue gas desulphurisation (FGD) system. "Unit 1 is currently undergoing a scheduled outage and is expected to return to service in June, also connected to the main stack. This follows authorisation from the Department of Forestry, Fisheries and the Environment (DFFE), which had previously permitted the temporary operation of the three units without the FGD system, under strict environmental conditions, until March 31, 2025, following the 2022 structural failure of the west stack.' He said a total of 3.470GW wind capacity was made available through curtailment in the Eastern and Western Cape. 'In line with our goal to modernise the power system, Eskom has installed 880,000 smart meters to date.' Among other benefits, this technology supports effective demand control through load limiting and enables eligible customers to return surplus clean energy to the grid, helping to reduce strain on the system during peak times. 'Continued investment in building 2,500MW capacity and securing future energy supply through key milestones, Koeberg Unit 2 successfully returned more than 900MW to service in December 2024 following the completion of the Long-Term Operation project,' Marokane said. He said Kusile Unit 6 was synchronised to the grid on March 23, 2025, contributing 800MW and is scheduled to be in commercial operation by September 2025.
