South Africa’s power utility Eskom saved R16 billion in diesel costs by the end of 2025, thanks to improved reliability at its coal-fired power plants, which allowed for a significant reduction in the use of open-cycle gas turbines (OCGTs).
In a statement, Eskom said diesel usage has continued to decline into early 2026, reflecting ongoing improvements in system performance. The gains are attributed to the utility’s Generation Recovery Plan, launched in April 2023, which has strengthened the power system to its most stable position in the past five years.
Eskom reported that the country entered 2026 with an additional 4,400 megawatts of available generation capacity compared to the same period last year. The utility also cited the Debt Relief Act of 2023, which provided R254 billion, easing financial pressure and enabling critical investments in planned and preventative maintenance.
These measures have improved operational efficiency and system reliability nationwide.
Group Chief Executive Dan Marokane said Eskom has transitioned from a heavily constrained system to one capable of delivering reliable baseload power year-round, describing the process as “short-term pain for long-term gain.”
Marokane added that Eskom’s improved performance has boosted investor confidence, contributing to South Africa’s first credit rating upgrade in two decades and a decline in the risk rating of Eskom’s 2033 bonds.