Expect double the load-shedding — and regular stage 7 power cuts
According to Matthew Cruise, head of business intelligence and public relations at Hohm Energy, South African residents should expect load-shedding to continue for the next decade, and its intensity may even double over the next five years.
A significant barrier to ending load-shedding is the lack of transmission grid capacity, which is already at full capacity according to the Council for Scientific and Industrial Research (CSIR).
The expansion and strengthening of the grid require significant funding, estimated to be around R500 billion, but there is little investor confidence in Eskom, the state-owned power utility, and it may struggle to receive funding without another government bailout.
The recent R254 billion bailout for Eskom’s debt has not inspired confidence among lenders. The financial constraints and issues with the transmission grid may take about ten years to address.
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