Eskom’s energy availability outlook brings hope for mining operations

Eskom's Kriel power station

“Improved electricity availability is no longer a binding constraint on mining activity,” said André Lourens, economist at the Minerals Council.

“However, affordability has emerged as a critical issue, directly impacting the competitiveness and profitability of South Africa’s mining sector.”

The increased interest in renewable energy investments trend is partly driven by the need to offset rising electricity costs and the looming tariff hike.

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This shift also aligns with companies' ambitions to secure reliable power and reduce operational disruptions caused by power shortages in previous years.

Lourens highlighted that renewable energy integration presents an opportunity for mines to achieve significant cost savings over time while enhancing energy security.

Risk mitigation

Renewables also contribute to reducing reliance on Eskom’s grid during peak demand periods.

By deploying solar, wind, and hybrid systems, mining companies can shield themselves from the financial risks associated with volatile electricity tariffs and fossil-fuel-based generation costs.

The report identified a surge in planned maintenance activities during December 2024, leveraging reduced electricity demand amid the festive season.

Maintenance efforts averaged over 8,000MW, an increase compared to November.

These proactive measures were outlined by the Minister of Electricity and Energy as a means to fortify the reliability of Eskom’s generation fleet ahead of winter, with Kusile Unit 6 and Medupi Unit 4 set to add 1,500MW of capacity by early 2025.

Koeberg’s return a boost to business

Koeberg Unit 2 was also synchronised to the grid after extensive upgrades, providing an additional 970MW in December.

“This milestone reflects Eskom’s commitment to stabilising energy supply and ensuring industrial sectors like mining have a dependable foundation for growth,” Lourens explained.

The absence of loadshedding since March 2024 has significantly boosted business confidence.

Production output

Seasonally adjusted electricity production rose 6.4% year-on-year in November, reflecting stronger industrial output.

“The consistent supply of electricity is an important driver behind the anticipated GDP growth of 1.5% to 2% for 2025,” Lourens added.

The outlook is not without challenges.

While Eskom forecasts potential shortages of 2,000MW during winter, the utility is confident that a robust maintenance strategy would minimise risks.

As the nation continues to navigate its energy transition, the partnership between Eskom, the government, and private enterprises will be critical in ensuring sustainable growth for one of the country’s most vital sectors.