South Africa

South Africa needs R500 billion to end load-shedding

South Africa will require R500 billion in private investment to end power cuts that are stalling economic growth by the start of 2025, said Peter Attard Montalto, Intellidex’s head of capital markets research.

He said the money is needed to construct 15 gigawatts of generation capacity and five gigawatts of battery storage, adding that the requirement is unlikely to be met within such a tight time frame.

South Africa is facing its worst year of power cuts as Eskom, the national utility, imposes rolling blackouts, known locally as load-shedding, because poorly maintained coal-fired plants keep breaking down. The country has been plagued by outages since 2008.

“Ending load-shedding by end-2024 is possible, but a stretch,” Montalto said in a response to questions. It would require that all efforts to end the crisis and introduce energy reforms “would have to go like clockwork,” he said.

Montalto said in a presentation to the Presidential Climate Change Coordinating Commission on Thursday that the country will need to invest an additional R175 billion in expanding its power grid over the next decade.

Newsletter

Top JSE indices

1D
1M
6M
1Y
5Y
MAX
 
 
 
 
 
 
 
 
 
 
 
 
You must sign in to view or make comments.

or