South Africa’s Eskom Accelerates Grid Modernization to Eliminate Power Reductions by 2027

Eskom’s Comprehensive Strategy to End Load Reduction

South Africa’s state-owned power utility Eskom is reportedly bolstering efforts to eliminate load reduction entirely by 2027, according to recent announcements. The utility’s Load Reduction Elimination Strategy, launched by Electricity and Energy Minister Dr Kgosientsho Ramokgopa on September 25, establishes a detailed roadmap to strengthen the country’s distribution network and address electricity challenges in high-risk areas.

Eskom’s Comprehensive Strategy to End Load Reduction
Current Load Reduction Necessity
Three-Pronged Implementation Approach
Expanding Free Basic Electricity Access
Accelerated Smart Meter Deployment
Distributed Energy Resources Implementation
Substantial Infrastructure Investment
Supplier Procurement and Community Collaboration
Program Impact and Timeline

Current Load Reduction Necessity

Despite improvements in generation performance, sources indicate that temporary load reduction of 529 MW during morning and evening peak periods remains necessary in certain areas. The utility emphasizes that this measure protects infrastructure and ensures public safety. “Ongoing electricity theft from illegal connections and meter tampering continue to cause equipment overload, leading to unsafe conditions and, in extreme cases, catastrophic equipment failures, making load reduction essential as a preventive measure,” the report states.

Three-Pronged Implementation Approach

Analysts suggest Eskom’s program follows a phased, comprehensive approach with three key components designed to address both immediate and long-term challenges in South Africa’s power distribution system.

Expanding Free Basic Electricity Access

The first component focuses on expanding free basic electricity (FBE) access to qualifying households. Reports indicate that while approximately 2.1-million households qualify for FBE in Eskom supply areas, only 485,000 currently receive this benefit. The utility explains that expanding FBE is particularly crucial as households face rising electricity costs and businesses strive to maintain competitiveness. According to Eskom, delivering this benefit to all eligible households requires collaboration between the utility, municipalities, and relevant government departments.

Accelerated Smart Meter Deployment

The second component involves the accelerated rollout of smart meters across Eskom’s service areas. Sources indicate that over 800,000 meters have already been installed, with plans to install an additional 6.2-million over the next three years. This includes the 1.69-million customers affected by load reduction, with 577,000 meters scheduled for installation by 2026 and the remainder by 2027. Eskom posits that smart meters support their Demand Management Programme by helping customers reduce peak-period consumption, improve efficiency, and strengthen overall grid stability., according to industry experts

Distributed Energy Resources Implementation

The third strategic element involves deploying distributed energy resources (DERs) to bolster supply in remote and high-demand areas. According to the plan, 250 DERs will be installed over the next five years, aimed at supporting sustainable local energy ecosystems and reducing strain on the main grid.

Substantial Infrastructure Investment

Eskom Distribution acting group executive Agnes Mlambo has reportedly outlined significant financial commitments to support these initiatives. “Over the next five years, Eskom will invest approximately R320-billion to sustain and modernise electricity infrastructure, including smart meters, with 14% allocated to Distribution,” Mlambo explained. The executive added that Eskom is fully prepared to implement the program, with smart meters being procured and delivered in tranches to manage operational risks such as storage, theft, damage, and inefficiencies., according to related news

Supplier Procurement and Community Collaboration

Mlambo further emphasized that suppliers continue to be sourced through open tenders, with recent expressions of interest expected to bring additional capable suppliers onboard to accelerate delivery. The acting group executive has called on communities to collaborate with Eskom to ensure these interventions are seamless and effective, highlighting that public cooperation is essential for the program’s success., according to technology insights

Program Impact and Timeline

Over the next 12 to 18 months, Eskom’s plan to eliminate load reduction is expected to impact approximately 1.69-million customers, representing about 20% of its customer base. These targeted customers are supplied via 971 feeders, predominantly located in Gauteng, Limpopo, Mpumalanga and KwaZulu-Natal. The comprehensive approach aims to address both the technical infrastructure challenges and the socioeconomic factors contributing to grid instability as South Africa works toward a more reliable electricity future.