Eskom’s generation recovery plan delivers strongest power system in five years

Banele Ginindza

Eskom has entered 2026 with an additional 4 400MW of available generation capacity compared with the same period last year, underpinned by a marked improvement in the performance of its power stations, according to Eskom Group CEO Dan Marokane.

In a statement on Monday, Marokane said South Africa returns from the holiday break to a structurally stronger system entering 2026 than in five years with the stability reflected not only in structural improvements in the generation fleet, but in fewer emergency interventions and improved maintenance discipline.

Marokane outlined that since the results of the recovery plan include Eskom having occasionally pushed the Energy Available Factor (EAF) to 70% on 55 occasions since 2023.

Other benchmarks include scheduled maintenance or the Planned Capacity Loss Factor (PCLF), reaching a high of 12.76% in the 2025 financial year following an intensive period of maintenance, and is currently at 9.32%, trending towards the global-best practice for power systems.

Marokoane said savings from diesel usage in FY2025 were around R16 billion and continue to decrease in FY26, due to the reliability of the coal fleet increasing, enabling the safe reduction in the use of the open-cycle gas turbines (OCGTs).

The power utility has reduced the Unplanned Capacity Loss Factor (UCLF) from 31.92% to 16.02% over the period.

“The big picture through the peaks and troughs of delivering the Generation Recovery Plan is that Eskom has moved from a heavily constrained power system to an increasingly stable one, a power system that can reliably deliver 24/7, 365 baseload power,” Marokane said.

“We will now maintain and build upon these early gains through a rigorous focus on operational reliability and sustainability. It has been ‘short-term pain for long-term gain’, and I would like to thank the country for its understanding and support, as well as our employees for continuing to deliver on our strategy.”

Marokane said the passing of the Eskom Debt Relief Act in 2023 provided R254bn to significantly reduce the financial pressure on Eskom’s balance sheet. 

He said this enabled Eskom to make vital investments and conduct planned and preventative maintenance, improving operational efficiency and reliability, the results of which South Africa is experiencing today.

“A reliable power system is not just measured in megawatts; it is measured in investor confidence. The impact of Eskom’s improved performance has contributed towards South Africa receiving its first credit rating upgrade in two decades and the risk rating associated with Eskom’s 2033 bonds has dropped, providing early indicators to investors warming to the turnaround,” Marokane said.

In its latest system update, Eskom has said it was ready to meet the projected rise in electricity demand amid the heightened economic activity in the coming weeks as industries gradually resume operations.

It said to maintain a stable electricity supply, it would bring 3 040MW of generation capacity online ahead of the evening peak on Monday.

The entity said the ongoing improvement in EAF has greatly reduced reliance on expensive diesel generation, enabling a stronger focus on more cost‑effective primary energy sources. 

"Diesel spending is now R2.95bn lower than the same time last year. This continued reduction demonstrates both the cost savings and the operational improvements achieved through Eskom’s ongoing turnaround efforts," it said.

"Overall, this positive trend highlights the growing stability and efficiency of the power system. Year-to-date, diesel expenditure remains consistently below budget." 

Eskom published the Summer Outlook on 5 September 2025, covering the period 1 September 2025 to 31 March 2026, which projects no loadshedding due to sustained improvements in plant performance from the Generation Recovery Plan.

On the smart-meter rollout, Eskom said it has installed and uploaded 75 736 smart meters on feeders affected by load reduction, with more than 90% of these installations located in Gauteng, Mpumalanga, Limpopo, and KwaZulu‑Natal. 

"The programme aims to install a total of 577 347 meters by March 2026, with full completion expected in 2027. Current progress stands at approximately 13.11% of the overall target, and installations continue steadily to ensure the programme’s milestones are achieved," Eskom said.

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