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Blog : 5 August 2016 (ESKOM vs Independents.. Continued)
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We take a look at the contribution ESKOM and independent power producers are making towards total Gigawatt hours of electricity produced in South Africa. A few months ago we published a similar article and it got ESKOM pretty hot under the collar. In particular their spokesperson. Wonder if this article will do the same? As the result is even worse for ESKOM.
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ESKOM vs Independents
We take a look below at the contribution ESKOM and independent power producers are making to total electricity produced in South Africa.
In May 2010 ESKOM produced as much as 97.4% of all electricity in South Africa, with independents making up a mere 2.6% of total power produced in South Africa. By May 2016 ESKOM only produced 93.3% of all electricty, and independents 6.7% (in increase in the contribution by independents of 158% in the last 6 years).
While the contributions to total electricity produced is one thing, the total amount of electricity produced is another. The line graph below shows three graphs:
- Total Electricity Produced
- Electricity Produced by ESKOM
- Electricity Produced by Independents
As can be seen from the graph, total electricity produced has been declining in recent year. In June 2010 total electricity produced amounted to 22 206 Gigawatt hours, in June 2016 total electricity produced was sitting at 21 436 Gigawatt hours. A decline of 3.47% from June 2010 to June 2016. Not exactly a sign of growing economy demanding more electricity.
What is also noticeable from the line graph is the divergence between the red line (total electricity produced) and blue line (ESKOM). Basically showing that ESKOM is producing less of the total electricity produced in South Africa. The yellow line shows the strong increase in electricity produced by independent power producers. From June 2010 to June 2016, independent power producers increased power produced from 1039 Gigawatt hours to 1450 Gigawatt hours (an increase of 39.6% during the period), while ESKOM's power produced for the same period dropped from 22 515 Gigawatt hours to 19 986 Gigawatt hours (a decline of 11.2% in power produced by ESKOM over the last 6 years).
What is also noticeable from the line graph is the divergence between the red line (total electricity produced) and blue line (ESKOM). Basically showing that ESKOM is producing less of the total electricity produced in South Africa. The yellow line shows the strong increase in electricity produced by independent power producers. From June 2010 to June 2016, independent power producers increased power produced from 1039 Gigawatt hours to 1450 Gigawatt hours (an increase of 39.6% during the period), while ESKOM's power produced for the same period dropped from 22 515 Gigawatt hours to 19 986 Gigawatt hours (a decline of 11.2% in power produced by ESKOM over the last 6 years).
So we will say it again, while President Zuma boldly declared South Africa will never see loadshedding again, this is not due to ESKOM getting their ducks in a row and producing more electricity due to more power plants coming online or maintenance work being conducted by ESKOM. The facts are there for all to see.
The no more loadshedding can be attributed to the following:
ESKOM is producing less and less electricity. In fact their electricity production has decline by 11.2% in the last 6 years. And this after spending hundreds of billions in capital expenditure to improve the grid and to produce more electricity to allow South Africa's economy to grow. Sadly lack of reliable power supply has not only hampered foreign investment in South Africa but also stunted its current and potential economic growth.
And while ESKOM is slumbering along inefficiently, the independent power producers have stepped up and started stealing market share from ESKOM. And if ESKOM was a little faster in allowing independents to pump power into the grid, confidence in the power supply of South Africa could be regained quicker, which in turn could lure much needed foreign investments into South Africa.
The no more loadshedding can be attributed to the following:
- Lower demand due to weak economy
- More households getting off the grid (using solar power to power their homes)
- More energy efficient households and businesses (LED lights, timers for swimming pool pumps etc)
ESKOM is producing less and less electricity. In fact their electricity production has decline by 11.2% in the last 6 years. And this after spending hundreds of billions in capital expenditure to improve the grid and to produce more electricity to allow South Africa's economy to grow. Sadly lack of reliable power supply has not only hampered foreign investment in South Africa but also stunted its current and potential economic growth.
And while ESKOM is slumbering along inefficiently, the independent power producers have stepped up and started stealing market share from ESKOM. And if ESKOM was a little faster in allowing independents to pump power into the grid, confidence in the power supply of South Africa could be regained quicker, which in turn could lure much needed foreign investments into South Africa.
