South Africa: Eskom Saves R16bn In Diesel Costs In 2025 As Power System Stability Improves

South Africa’s power utility, Eskom, saved R16 billion (equivalent to approximately US$979,218,240.00 ) in diesel costs by the end of 2025 due to improved reliability of its coal-fired power plants, which enabled a safe reduction in the use of open-cycle gas turbines (OCGTs).

In a statement, Eskom noted that diesel usage continues to decline at the beginning of 2026.

According to the utility, its Generation Recovery Plan, which commenced in April 2023, has enabled South Africa to return from the holiday break with a structurally stronger power system entering 2026 than at any point in the past five years.

This includes an additional 4,400 MW of capacity available compared to the same period last year.

Eskom also noted that the passage of the Debt Relief Act in 2023 provided R254 billion, significantly easing financial pressure on the utility’s balance sheet.

This support enabled Eskom to make critical investments and carry out planned and preventative maintenance, thereby improving operational efficiency and system reliability—benefits now being felt across South Africa.

“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 system that can reliably deliver 24/7, 365 baseload power. We will now maintain and build on 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,” said Eskom Group Chief Executive, Dan Marokane.

“A reliable power system is not just measured in megawatts (MW); it is measured in investor confidence. Eskom’s improved performance has contributed to South Africa receiving its first credit rating upgrade in two decades, while the risk rating associated with Eskom’s 2033 bonds has declined—providing early indications that investors are warming to the turnaround,” Marokane added.