The Power consumption in South Africa reached 203,948 GWh in 2020
The indicator recorded a historical decline at a CAGR of 0.73% between 2017 to 2020
Why did the power consumption in South Africa decline in 2020?
Power demand in South Africa has been increasing slightly slower than GDP growth. Consumption increased at a mid-single digit CAGR between 2000 and 2020. Demand is expected to decline during the 2020–2030 forecast period due to drop in GDP and per capita income levels. As a result, a minor part of the population will not be able to afford electricity letting to a decline in demand. Power consumption is expected to decrease at a negative low-single digit CAGR till 2030.
In 2020, industry sector’s consumption has the dominant share in power consumption. This was followed by residential and commerce and public services. Power consumption has also been significant in agriculture, transport sector.
The main challenge facing the South African power sector is a very slow growth in electricity consumption which can hamper both country’s economic and power sector growth. Slowdown in demand has been hamstrung by an increase in prices as well as a sluggish economy.
Power consumption is the net electricity consumed by the end users by excluding losses and own consumption and after adjusting exports and imports in a calendar year (fiscal year in some cases). The unit is represented in Gigawatt hours (GWh) and the scope is limited to historic period.
Impact of COVID-19
The electricity utility was already struggling prior to the spread of the pandemic. ESKOM Holdings, the dominant player in the market is up to the brim in debt. The utility has been implementing planned blackouts during the period making matter worse. Moreover, Electricity consumption has fallen in the country and left ESKOM with excess capacity. Prior to pandemic, South African government agreed with IPPs terms to purchase more renewable energy to support ESKOM Holdings. However, with the advent of COVID-19 pandemic, power sector authorities decided to disregard this in April 2020.
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