South Africa’s electricity supply has entered 2026 in its strongest position in at least five years, with Eskom reporting materially improved performance across its generation fleet following the implementation of its generation recovery plan.
According to Eskom, the plan – launched in April 2023 – has added 4.4GW of available capacity compared to the same period last year, helping stabilise the power system after years of rolling blackouts and emergency interventions.
The utility said the improvement is reflected not only in higher generation availability but also in fewer breakdowns, reduced reliance on diesel-powered generators and improved maintenance discipline.
Eskom’s energy availability factor (EAF) has risen from 56.03% in April 2023 to 64.55%, with the fleet reaching or exceeding the 70% benchmark on 55 occasions since the start of the current financial year on 1 April 2025.
Planned maintenance, measured by the planned capacity loss factor (PCLF), peaked at 12.76% in the 2025 financial year following an intensive maintenance programme and has since declined to 9.32%, trending towards international best practice. At the same time, unplanned outages have fallen sharply, with the unplanned capacity loss factor dropping from 31.92% to 16.02%.
The improved reliability of the coal fleet has also delivered substantial cost savings. Eskom said diesel expenditure fell by around R16-billion in its 2025 financial year, with further reductions expected in the current year as the utility scales back the use of open-cycle gas turbines, which are typically reserved for emergency supply shortfalls.
Eskom CEO Dan Marokane said the recovery plan had shifted Eskom from a severely constrained system to one capable of delivering reliable baseload power.
‘Long-term gain’
“The big picture is that Eskom has moved from a heavily constrained power system to an increasingly stable one – a system that can reliably deliver 24/7, 365 baseload power,” Marokane said. “It has been short-term pain for long-term gain.”
Eskom also credited the Eskom Debt Relief Act of 2023, which provided R254-billion in financial relief, with easing balance sheet pressure and enabling critical investments in preventative maintenance and operational improvements.
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Marokane said improved generation performance is beginning to translate into broader economic benefits, including rising investor confidence. He noted that South Africa has received its first credit rating upgrade in two decades, while the risk premium on Eskom’s 2033 bonds has declined – early signs, he said, that markets are responding positively to the utility’s turnaround. – © 2026 NewsCentral Media
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