KEY POINTS
- Former Eskom CEO André de Ruyter says South Africa’s end to load-shedding stems from costly diesel use, returning coal and nuclear units, and private solar additions.
- Eskom’s diesel budget has jumped from R5 billion to more than R23 billion annually, raising sustainability concerns.
- Government critics warn the blackout-free period may be temporary given high costs and ongoing structural weaknesses at the utility.
South Africa’s former power utility chief, ESKOM, André de Ruyter, says the country’s longest stretch without rolling blackouts in years owes less to sudden operational miracles and more to costly measures such as record diesel use and the return of key coal and nuclear units.
De Ruyter, who resigned as Eskom Holdings SOC Ltd. chief executive in early 2023 after a turbulent tenure, told BizNews in an interview that the absence of load-shedding should surprise no one. “The math is very simple,” he said, pointing to the return of large generation units and increased private solar generation. “Problems don’t disappear, but if you throw enough money at diesel, they magically go away.”
Diesel Bill Soars as Plants Return
During his time at the helm, Eskom’s diesel budget stood at about 5 billion rand annually. That figure has since ballooned nearly fivefold to around 23–24 billion rand, de Ruyter noted. “It costs about six rand per kilowatt hour to generate from diesel. It’s not sustainable, but it buys you time,” he said.
Alongside the diesel burn, multiple coal units at the Kusile power station—previously offline due to structural failures—are back producing electricity. The Koeberg nuclear plant near Cape Town also completed a major replacement of steam generators, restoring almost 1,840 megawatts to the grid. Together, those returns added thousands of megawatts at a critical juncture for the troubled utility.
Private investment in solar power has also surged, easing pressure on the grid. Analysts say these factors combined have delivered the respite from outages South Africans have long demanded, though at a steep financial cost.
De Ruyter’s comments come as the government faces criticism over Eskom’s direction and finances. Electricity and Energy Minister Kgosientsho Ramokgopa, who has previously described de Ruyter’s appointment as a “strategic mistake,” has argued that the utility requires leaders with deep operational expertise.
Still, industry observers say the current blackout-free run is fragile. With diesel costs eating into public finances and coal fleet reliability still uncertain, the sustainability of the reprieve remains in question.
