Advancing the Economy, Competition and the Integration of Renewable Energy

At 00:01 on Saturday 16 May 2026, Eskom delivered for South Africa one full year without a single second of loadshedding, a milestone last achieved eight years ago in September 2018.

This milestone marks a decisive turning point and a structural shift from a recovering grid to a stable, high-performing power system. While the legacy of loadshedding once constrained economic activity and strained South African households, 365 consecutive days of uninterrupted power supply represents more than operational progress, it is a restoration of national confidence.

Over the past three years, this sustained reliability has saved R26.9 billion in diesel costs and ensured Eskom successfully met 100% of the nation’s electricity demand.

“This moment has been three years in the making since the inception of the generation recovery plan. Eskom’s employees have again delivered using their deep technical and institutional capability built over decades of public investment that remains a critical part of our national capacity, which will now increasingly focus on delivering cleaner sources of energy,” said Eskom Board Chairman, Mteto Nyati.

“The Eskom board and I are proud of the leadership demonstrated by the Eskom executive team led by Dan Marokane and the perseverance and focus of Eskom employees following the state capture years,” concluded Nyati.

“South Africa now has a stable electricity platform to enable an orderly transformation of the industry, as no energy market liberalisation in the world has been successful without a stable incumbent,” said Eskom Group Chief Executive, Dan Marokane.

“The delivery of this milestone again demonstrates that Eskom’s true progress is rooted in the expertise of its 40 000 people, our Original Equipment Manufacturers (OEMs) and other partners. Government intervention through the Energy Action Plan has also been an important factor towards the progress we have made. Eskom has the scale and human capital experience to partner with investors to help deliver South Africa’s R2.23 trillion Integrated Resource Plan for investment in the energy sector,” concluded Marokane.

“Eskom is a skills-based engineering organisation and morale is at an all-time high as we reach this milestone and deliver to South Africa what we do best. The belief in ourselves and our pride has returned. Today represents the hardest‑won progress in Eskom’s recent history and establishes a stable platform for continued performance improvement, achieved through consistent execution of maintenance and improving the reliability of each unit across the system. We are ready to participate in a competitive power generation marketplace,” said Eskom’s Group Executive for Generation, Bheki Nxumalo.

Sustained improvements

Eskom’s progress is reflected in sustained improvements in generation performance over the past three financial years since the start of the generation recovery plan.

The rising Energy Availability Factor (EAF) and declining Unplanned Capacity Loss Factor (UCLF), also known as breakdowns, are accompanied by a sharp reduction in diesel expenditure, demonstrating improved plant reliability and reduced reliance on emergency reserves.

Since the start of the generation recovery plan in March 2023:

• Energy Availability Factor (EAF) improved from 54.56% to 65.16%, an increase of 10.6%,
• Unplanned outages declined from 32.34% to 22.88%, reflecting a comparable reduction of 9.46%. This signals fewer breakdowns and more reliable plant.
• Reliance on diesel‑powered emergency generation declined significantly, with expenditure falling from approximately R33.3 billion to R6.4 billion (pending the finalisation of the audit process), a reduction of R26.9 billion (around 81%)

These gains are underpinned by a strengthened maintenance programme and the disciplined implementation of the Generation Operational Recovery Plan. Building on earlier maintenance levels, Eskom intensified planned maintenance to restore long-term fleet reliability, while improving outage planning, reducing unit trips, and strengthening operational discipline across people, plant and processes.

Supporting energy intensive industries in distress

The consistent baseload electricity supply and improved generation capacity has enabled Eskom to support energy intensive industries in distress, particularly the ferrochrome sector. These targeted interventions have helped sustain industrial operations and prevent job losses, while providing businesses with greater certainty and supporting industrial production and investment. This progress underscores Eskom’s role in enabling economic growth, strengthening competitiveness, and supporting long-term investment across the South African economy.

In parallel, a more stable base‑load fleet has enhanced the system’s ability to accommodate variable renewable energy, particularly during morning and evening peak demand periods, thereby supporting a more flexible and resilient power system.

Financial progress

The operational improvements have also translated into meaningful financial progress. Sustained performance gains and cost discipline contributed to Standard & Poor’s Global Ratings upgrading Eskom’s credit rating for the first time in over a decade, signalling improved confidence in the utility’s recovery trajectory. Eskom also recorded a 2.1% year-on-year improvement in pre-tax profit and a 1.6% increase in EBITDA in FY2026, reflecting enhanced operational efficiency and cost discipline (subject to the finalisation of the audit).

Looking ahead

Looking ahead, Eskom remains focused on sustaining these gains while supporting the long-term transition of the power system. In line with national energy policy, Eskom is applying a rigorous, evidence-based approach to the timing and readiness of new generation capacity. This will inform decisions on the phased shutdown, repowering, and repurposing of older coal-fired stations in a manner that safeguards security of supply while advancing emissions reduction and just transition objectives. A decision is expected in the second quarter of FY2027 (between 01 July 2026 and 30 September 2026). This approach ensures that recent operational gains are preserved and that sufficient baseload capacity is maintained to support economic growth and investment.

Additionally, Eskom is applying the same disciplined approach to improve affordability and end load reduction, with over half a million households across the country already benefiting from Eskom’s targeted load reduction programme. This means that many communities that previously experienced periods of load reduction are now receiving a continuous electricity supply. Notably, both the Northern Cape and Western Cape have fully eradicated load reduction, demonstrating the real impact of these efforts on people’s daily lives.

Eskom acknowledges the continued support of the Minister of Electricity and Energy, government, the National Energy Crisis Committee (NECOM), and law enforcement agencies, whose coordinated efforts have been instrumental in stabilising the system and protecting critical energy infrastructure.

Eskom is translating strengthened performance into tangible results. A more stable and predictable power supply is reducing disruption, enabling businesses to plan with greater certainty, and supporting an environment where industry and investment can grow across South Africa and beyond. This, in turn, contributes to a more inclusive and resilient future for South Africa.

Courtesy of Eskom

About Eskom and Electricity – Integrated Resource Plan: Eskom is aligned with South Africa’s long-term energy planning strategy.