Overview of 2023
Eskom’s turnaround plan focused on restoring operations, improving financial performance, strengthening the balance sheet, advancing the legal separation of its Generation, Transmission, and Distribution businesses, and transforming its people and culture to adapt to a changing energy landscape shaped by deregulation, digitalisation, and low-carbon technologies.
The utility continued investing along the value chain to align with government policy while balancing the Just Energy Transition with South Africa’s economic realities. Key initiatives included repurposing and repowering ageing coal-fired stations, facilitating private-sector participation in renewable energy projects through land-lease programmes, and enabling new generation capacity.
The soon-to-be-operational National Transmission Company of South Africa (NTCSA) represented a critical milestone in Eskom’s structural reform—designed to unlock trade, attract investment, and enhance transparency in the electricity market. In partnership with the National Energy Crisis Committee (NECOM), Eskom supported the national drive to add 21 GW of new capacity by 2026, while prioritising short-term operational recovery to reduce fiscal dependence and ease the economic impact of loadshedding.
Working closely with the government, the new Board aligned on priorities to improve plant performance, accelerate the Just Energy Transition, and ensure long-term sustainability. Initiatives such as the Komati Repurposing Project symbolised Eskom’s first tangible step toward a greener, future-ready utility.
Reflecting on his tenure, outgoing Chairman expressed appreciation to Minister Pravin Gordhan, the Board, and government leadership for their partnership and accountability. He shared a commitment to ethical governance and stability during a defining period for South Africa’s energy sector.
Financial performance and support
Eskom received R21.9 billion in government equity support to stabilise its balance sheet and sustain operations. Revenue increased by 4.8%, aided by a 9.61% tariff adjustment, while the Eskom Debt Relief Act, promulgated in July 2023, provided R254 billion over three years to service debt and strengthen financial resilience.
Despite these interventions, Eskom recorded a net loss after tax of R23.9 billion, driven mainly by escalating municipal arrears of R58.5 billion and open-cycle gas turbine (OCGT) fuel costs that nearly doubled to R29.7 billion. The utility’s total procurement spend reached R206.2 billion, with 72.8% directed to B-BBEE-compliant suppliers − underscoring its continued commitment to transformation and inclusive economic growth in South Africa.
Operational and generation performance
The Energy Availability Factor (EAF) declined to 56.03%, resulting in 280 days of load shedding. Eskom issued a public apology for the impact on households and businesses and introduced several demand-side management initiatives to alleviate grid pressure during peak demand periods.
Despite operational constraints, several major generation milestones were achieved:
· Matimba Unit 5 set a new reliability record, operating for more than nine years without a boiler tube failure.
· Kusile Unit 4 achieved commercial operation ahead of schedule.
· Major boiler defect repairs at Medupi and Kusile were fixed, improving plant performance.
In the same month, Eskom launched the Hex Battery Energy Storage System (BESS) in Worcester, Western Cape − the largest in Africa and the first completed under Eskom’s flagship BESS programme. Designed to strengthen grid reliability and diversify the energy mix, the Hex site stores 100 MWh of energy − enough to power a small town for five hours − as part of a broader Phase 1 rollout that provides 833 MWh of storage across four provinces.
Renewable energy and energy transition
Eskom continued advancing South Africa’s clean energy transition. Bid Window 6 of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) concluded with five successful bidders, while earlier projects under Bid Windows 3.5 and 4b progressed toward scheduled grid connection.
To address supply shortfalls, Eskom implemented the standard offer and Emergency Generation programmes to procure additional capacity from IPPs. The utility also commissioned a microgrid at Swartkopdam in the Northern Cape, providing electricity to 39 off-grid households using Eskom-developed solar and battery microgrid technology. Building on earlier pilots in Lynedoch and Ficksburg, this project demonstrated cost-effective rural electrification and formed part of a plan to deploy 100 microgrids nationwide. Leadership, governance, and anti-corruption
Leadership transitions defined Eskom’s 2023 journey. André de Ruyter resigned as Group Chief Executive in February, Calib Cassim served as interim CEO, and Dan Marokane was appointed Group Chief Executive in December.
The year also saw intensified efforts to strengthen governance and combat corruption. Eskom collaborated with law enforcement on several investigations, leading to arrests for fuel theft and tender fraud. A bribery scandal at Camden Power Station highlighted ongoing governance challenges, prompting renewed commitments to transparency, accountability, and ethical leadership across all divisions.
Youth empowerment and social impact
Eskom extended electricity access to over 102 000 previously disadvantaged households and invested R63 million in corporate social investment (CSI) projects, benefiting more than 438 000 people nationwide.
Through the government’s Youth Employment Service (YES) programme, 523 young people received fixed-term employment opportunities. Eskom also continued sponsoring the Eskom Expo for Young Scientists, where South African learners earned global recognition at science fairs in Turkey and Germany—demonstrating the company’s ongoing commitment to education, innovation, and national development.
Restructuring and reform
The year 2023 was both a time of hardship and progress for Eskom. Despite ongoing loadshedding, financial strain, and governance challenges, the utility made meaningful progress in stabilising operations, strengthening infrastructure, and accelerating the energy transition.
Eskom’s continued reform, investment in clean technologies, and commitment to youth empowerment and ethical leadership signal a renewed trajectory − one focused on restoring trust, ensuring financial stability, and securing South Africa’s sustainable energy future.
Conclusion
The year 2023 was both a time of hardship and progress for Eskom. Despite ongoing loadshedding, financial strain, and governance challenges, the utility made meaningful progress in stabilising operations, strengthening infrastructure, and accelerating the energy transition.
Eskom’s continued reform, investment in clean technologies, and commitment to youth empowerment and ethical leadership signal a renewed trajectory − one focused on restoring trust, ensuring financial stability, and securing South Africa’s sustainable energy future.