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the audit). The Eskom Board has been reconstituted with skilled professionals, ensuring continuity as well as strengthened technical, financial and governance expertise. The utility was also recognised as a Top Employer for the second consecutive year, reflecting Eskom’s commitment to employee development, building capability and organisational stability. Energy security and the path ahead Since the Summer Outlook for power system presented on 5 September 2025, the Integrated Resource Plan (IRP) 2025 was gazetted on 28 October 2025 by the Minister of Electricity and Energy, providing updated policy direction on the optimal electricity supply mix and the timing of new generation capacity. In line with this policy framework, Eskom’s approach remains focused and it continues to apply a rigorous and evidence based assessment to determine whether planned new generation capacity will be delivered within the required timeframes to support the orderly shutdown, repowering, and repurposing of the five older coal fired power stations, as earmarked, in line with security of supply and just energy transition considerations. Eskom expects to take this decision by around Quarter 2 FY2027 (between 01 July 2026 and 30 September 2026). The objective is to ensure security of supply is maintained, the gains achieved to date are sustained, and the critical capacity to support economic growth is protected to enable long-term investment decisions by business to be supported. Any delays in new capacity delivery present a critical risk to supply adequacy between 2029 and 2030, as confirmed by the Medium Term System Adequacy Outlook 2025 conducted by the National Transmission Company South Africa (NTCSA). Managing the transition to Net Zero Eskom has consistently maintained that the pathway to net zero is complex and must be technology led. IRP 2025 provides for the development of a clean coal technologies demonstration plant by 2030. In line with this policy position, Eskom, in collaboration with key research and industry partners, intends to develop a High Efficiency, Low Emissions (HELE) demonstration plant to assess cost competitiveness while supporting the responsible and transitional use of coal. It is pursuing a portfolio based approach to emissions reduction, with its research and development division demonstrating encouraging progress in direct sorbent injection (DSI) trials and ammonia co firing. These technologies offer potentially lower cost emissions reduction pathways compared to conventional flue gas desulphurisation, supporting system reliability and security of supply. At the briefing, further inputs from Agnes Mlambo, Acting Group Executive for Distribution, and Monde Bala, CEO of NTCSA outlined the progress made in distribution and transmission – and the challenges ahead.
dependency and saved R26.9 billion compared to FY2023. These savings are a result of strengthened maintenance discipline and project delivery. Every megawatt we return contributes towards economic growth. The restoration of a consistent baseload electricity supply has further enabled Eskom to support industries in distress, particularly the ferrochrome industry, and to play a role in preventing job losses. The country has invested in Eskom, and we are continuously working to restore this national asset to full health; it is a resource that all citizens have supported,” said Eskom Group Executive for Generation, Bheki Nxumalo. Sustained performance improvements Since March 2023, the stability progressively achieved is a direct outcome of the Generation Recovery Plan, which has delivered sustained, year-on-year improvements in system performance. Diesel expenditure reduced by R26.9 billion: Reduced reliance on open cycle gas turbine (OCGT) emergency peaking power resulted in diesel expenditure in FY2026 being at ~R6.4 billion, which is R26.9billion lower than FY2023, and ~R10billion lower year-on-year compared to FY2025. Energy Availability Factor (EAF) improved by ~10.8%: The EAF has improved from 54.55% in FY2023 to ~65.35% in FY2026, a gain of ~10.8%, reflecting stronger generation reliability and power system stability. EAF reached or exceeded 70% on more than 83 occasions during FY26. Unplanned losses, reduced by ~7.1 GW: Unplanned Capacity Loss Factor (UCLF) measuring unplanned losses, was reduced by ~7.1 GW, declining from 16.5 GW to ~9.1 GW as at 31 March 2026, a reduction exceeding one and a half times the capacity of Kusile Power Station. Planned maintenance increased, averaging 5.4 GW: Planned maintenance increasing from an average of 4.7 GW in FY2023 to peaks of around 8.0 GW, with an annual average of 5.4 GW in FY2026, strengthening long term plant reliability while temporarily reducing available capacity. Together, these improvements supported a period (as at 22 April 2026) of 341 consecutive days without loadshedding. Marokane also spoke of Eskom’s progress in strengthening its financial, governance and institutional capabilities – and he looked to the path ahead in terms of decisions to be made for energy security and the utility’s transition to Net Zero. Sustained operational improvements and financial discipline resulted in Standard & Poor’s Global Ratings upgrading Eskom’s credit rating for the first time in over a decade. Eskom also recorded a 2.1% year on year improvement in pre tax profit and a 1.6% improvement in EBITDA in FY2026, reflecting enhanced operational efficiency and cost discipline (subject to the finalisation of Financial, governance and institutional strengthening
For more information visit: www.eskom.co.za
32 Electricity + Control MAY 2026
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