South Africa’s state-owned power utility, Eskom, lost approximately R481 billion ($27.9 billion) in economic output due to load shedding in 2024.
This is according to the Council for Scientific and Industrial Research (CSIR) marking an 83% reduction from the R2.8 trillion ($162.4 billion) lost in 2023.
The sharp decline in losses reflects improvements in the reliability of the country’s coal-fired power plants, which supply the majority of South Africa’s electricity.
Increased maintenance and operational upgrades helped stabilize supply, although occasional outages have resurfaced in 2025.
In 2024, energy not supplied due to load shedding fell to 0.4 TWh, down sharply from 13.2 TWh in 2023.
The total number of load shedding days fell to just 13, compared with 329 days the previous year allowing Eskom to supply electricity on 96% of days during the reporting period.
Economic impact
The reduction in outages was largely driven by improved coal plant performance and a reduced reliance on expensive Open-Cycle Gas Turbines (OCGT).
Diesel consumption fell by R16.3 billion ($945. 4 million) reflecting both cost savings and lower environmental impact.
Operational improvements were complemented by a 12.74% standard tariff increase and a 14% reduction in primary energy costs.
These measures strengthened Eskom’s financial position, allowing the utility to continue investing in infrastructure and maintenance.
Energy security
Load shedding is a process where Eskom intentionally cuts electricity supply to different areas on a rotating schedule.
This is done to prevent a total collapse of the national grid, which would result in a nationwide blackout.
The process occurs when electricity demand exceeds available supply. To manage this, Eskom has implemented a series of protocols that allow load shedding to be carried out effectively.
Historically, load shedding has been a major constraint on South Africa’s economy. In 2023, prolonged outages cost businesses and the public sector billions of rands.
Manufacturing was disrupted, and service delivery was negatively affected across multiple sectors.
Eskom’s recent turnaround shows that operational improvements and governance reforms have significantly reduce load shedding.
These changes help limit the economic impact of outages and improve the reliability of the electricity supply.
