Power shortages will remain a big challenge in a post-COVID-19 South Africa

The decline in economic activity precipitated by the spread of COVID-19 and ensuing lockdown in South Africa is also affecting the country’s electricity supply dynamics. The power outages that were disrupting the economy just a month earlier are suddenly contained. Electricity demand in the lockdown period has decreased by about 7,500MW, corresponding to almost a quarter of its normal peak capacity.

Given that Eskom, the national power utility, is using the lockdown period for some of its regular plant maintenance routines, more reliable supply can be expected in the latter part of the year. Electricity demand is likely to remain suppressed after the lockdown but this relief won’t extend for more than a few months.

The utility has had some success in keeping many of its vulnerable generating plants operational, and is adopting a more rigorous maintenance regime. But electricity production capacity remains critically low.

When the country finally emerges from COVID-19, it will face a severely damaged economy requiring a massive rebuild. The electricity supply shortage will once again rear its head. [ READ MORE]