Eskom, South Africa's national power utility, is facing a significant threat from declining electricity demand. This shift is driven by the South African economy's move towards less energy-intensive services, resulting in lower electricity sales for Eskom. The utility is grappling with factors like slowing economic growth, rising electricity prices, and the rise of alternative energy sources. As a result, Eskom must adapt to remain competitive in a changing energy landscape.
Eskom faces a significant threat from declining electricity demand in South Africa , with its historically energy-intensive economy shifting towards low-energy services.
These factors have combined to result in South Africa’s energy intensity declining. This means that it now takes less energy to create a unit of GDP in 2025 than it has previously. Yelland said the past two decades have been characterised by a shift away from mining-heavy manufacturing in South Africa to services such as banking and insurance and light manufacturing.
With these large electricity users reducing their operations in the country and, in some cases, shutting down, Eskom is faced with a declining customer base. “We are busy creating a competitive electricity market. There is a new Electricity Regulation Act which allows for an open market and that is going to be the new playing field,” he said.
Yelland said that Eskom will not completely disappear as it retains some advantages over new players, particularly its ability to provide large consumers with electricity.
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