SA’s electricity output the lowest since 2006

Statistics South Africa’s (Stats SA) latest Electricity, Gas and Water Supply Industry report, which looks at the 2021 period, shows that South Africa generated 215 377 gigawatt hours (GWh) of electricity in 2021, 7.4% less than it did in 2019.

According to a statement released by the national statistical entity on Thursday, the 2021 figure is the lowest it has reported since 2006.

The Stats SA publication reports on South Africa’s electricity, gas and water supply industry, providing insights on the financial, production and employment performance of the industry. The report sources information through a large sample survey – which covers value-added tax registered enterprises – conducted between 1 July 2020 and 30 June 2021.

Decreased coal contribution

Although still the main contributor to electricity generated in the country – contributing 86.1% to the total generated in 2021 – coal’s contribution over the years has continued to dwindle.

According to the report, coal contributed 1.6 percentage points less to electricity generated in 2021 than it did in 2019, while the electricity source contributed 6.2 percentage points less than it did in 2013, the biggest percentage point loss in the last eight years.

On a more positive note however, renewable energy sources continue to gain momentum, steadily contributing more to electricity generated in the country over the years.

In 2021, renewable energy sources – wind, water and sun – contributed 13 106 GWh (6.1%) to total electricity output, about 16.2% more than it did in 2019.

The latest electricity generation numbers from Stats SA come as the country battles its worst bout of power outages since the country began battling load shedding in 2007, as the state-owned power utility Eskom struggles to keep its ailing power stations online either because of scheduled maintenance or breakdown challenges.

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Income

The electricity, gas and water supply industry saw a 13.2% increase in total income in 2021 to R330.5 billion, up from R292 billion in 2019, an increase supported by the electricity and water sectors.

“Large increases were reported for generation, transmission and distribution of electricity (+R31.7 billion) and collection, purification and distribution of water (+R4.5 billion),” the report cited.

Despite the improvements in income, profit margins in the industry have – although an improvement from 2019 – remained in the red. In 2021, industry profit margins were at -1.9%, compared to -3.9% in 2019.

“The outcome for 2021 was largely the result of a 6.8% margin in generation, transmission and distribution of electricity due to significant increased spending on interest, repair and maintenance and subcontractors and labour brokers.”

“Manufacturing and distribution of gaseous fuels through mains reported the highest profit margin in 2021 (29.5%),” Stats SA added.

Read: Eskom: 53GW of renewable energy needed to address SA’s electricity crisis