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You are here: Home / News / Business / A R12 Billion Reduction in Diesel Expenditure

A R12 Billion Reduction in Diesel Expenditure

6 September 2024 by Guest

Friday, 06 September 2024: Loadshedding remains suspended as a structural shift in the performance of the generation fleet continues to yield positive results, with Eskom achieving 163 consecutive days of uninterrupted power supply since 26 March 2024. This achievement includes a winter period free from loadshedding, a milestone last reached six years ago in 2018,…

Friday, 06 September 2024: Loadshedding remains suspended as a structural shift in the performance of the generation fleet continues to yield positive results, with Eskom achieving 163 consecutive days of uninterrupted power supply since 26 March 2024. This achievement includes a winter period free from loadshedding, a milestone last reached six years ago in 2018, despite the highest contracted demand reaching a peak of 33 385MW recorded on 09 July 2024.

In the past seven days, Eskom has not utilised its Open Cycle Gas Turbines (OCGTs), resulting in diesel expenditure of R3.62 billion from 01 April to 05 September 2024. This is a 77% reduction compared to the R15.74 billion spent during the same period last year.

Eskom’s Energy Availability Factor (EAF) averaged 66% over the past week, with top-performing stations such as Kusile, Grootvlei, Kendal, Lethabo, Matla, and the peaking stations maintaining an EAF above 70%. Additionally, two other power stations sustained an EAF above 60%. The continued improvement in the generation fleet’s performance is attributed to the recovery plan, accelerated maintenance, collaboration with original equipment manufacturers (OEMs), and the dedication of power station managers and their teams.

Operational efficiency has exceeded summer expectations, with unplanned outages averaging between 10 000MW and 11 060MW over the past week. Today’s unplanned outages stand at 7 969MW, which is 5 031MW lower than the summer 2024 base case. The last comparable performance was on 08 August 2021, with unplanned outages at 8 801MW.

As of today, Eskom’s available generation capacity is 30 643MW, with an evening peak forecast of 26 345MW for 06 September 2024.

Eskom announced in August its outlook for the summer period, 01 September 2024 to 31 March 2025, that detailed a likely scenario of a loadshedding-free summer outlook due to structural generation improvements. This remains in force. Further details can be found here: Summer Outlook and business operations update.

Key Performance Highlights:

Reduction in unplanned outages:

  • The Unplanned Capacity Loss Factor (UCLF) continues to be on a downward trend at 25.4% for the financial year to date (01 April 2024 to 05 September 2024), improving from 34.6% in the corresponding period last year.
  • This reduction in UCLF represents a ~9% improvement compared to the same period last year.
  • Unplanned outages of the generation units averaged 9 936MW during the past seven days, compared to 16 116MW in the corresponding week last year.

Planned Maintenance:

  • Ongoing planned maintenance is at 5 702MW, aligning with our summer maintenance strategy and bolstered by short-term maintenance to ensure continuous plant reliability.

Sustained Energy Availability Factor (EAF) improvement:

  • The year-to-date (01 April 2024 to 05 September 2024) EAF is at 63.7%, a significant improvement of ~8.5% compared to the same period last year (55.2%).
  • The weekly EAF has improved from 57.0% at the beginning of the financial year to 66.5% from 02 September to 05 September 2024, an improvement of 9.5%.
  • This improvement is primarily due to a drop in unplanned outages (UCLF and OCLF) of the generation units.

Continued strategic utilisation of Open-Cycle Gas Turbines (OCGTs):

Our strategic use of peaking stations, including pumped storage and OCGTs, remains key in managing electricity demand during peak times, particularly during evening peaks (17:00 to 22:00).

  • Diesel consumption remains significantly below projected figures for this summer and is considerably lower than the past two years.
  • Eskom’s expenditure on OCGTs between 01 April and 05 September 2024 remained at R3.62 billion having generated 530.01GWh, approximately 77% (R12.12 billion) less than the R15.74 billion spent last year over the same period for 2 617.10GWh.
  • The OCGT load factor for 01 April to 05 September 2024 was 4.09%, compared to last year’s figure of 20.22%.
  • The OCGT load factor for 01 September to 05 September 2024 was 0.00%, significantly lower than last year’s figure of 32.69%.
  • Diesel usage remains below the year-to-date budget.

A total of approximately 2 550MW of generating capacity is scheduled to return to service by Monday, 09 September 2024.

‘Save Your Transformers, Save Lives’ campaign

While loadshedding remains suspended, Eskom continues to face network overloading issues in certain local areas due to illegal connections, vandalism, meter tampering, unauthorised network operations, theft of network equipment, and purchasing electricity from unlicensed vendors. To prevent public safety hazards and the risk of network overloading which can lead to load reduction measures and extended unplanned power outages, Eskom strongly urges customers to avoid illegal connections, as this can negatively impact the entire local community. It is also essential for customers to ensure they purchase electricity only from authorised vendors.

Eskom implores the public to play an active role in safeguarding the integrity of the power network by reporting any illegal activities to the Eskom Crime Line at 0800 112 722 or via WhatsApp at 081 333 3323.

We will provide an update on Friday 13 September 2024, or promptly communicate any significant changes as soon as they occur.

Courtesy of Eskom

About Eskom and Electricity – Political Pressure: The company is often at the center of political debates regarding energy policy.

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Category: BusinessTag: Electricity, Energy, Eskom

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