![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/03\/Electricity-generation.png\")
<\/p>\nThere is a glimmer of hope in the midst of South Africa\u2019s energy crisis \u2013 individuals and businesses are becoming more efficient in their use of electricity.<\/p>\n
2022 was the worst year on record in terms of load shedding, with a constant 4,000MW to 6,000MW deficit during peak demand.<\/p>\n
It is estimated that load shedding in 2022 reduced potential real GDP growth by 5% and cost South Africa 600,000 potential jobs.<\/p>\n
Things were not always like this.<\/p>\n
As recently as 2001, Eskom was awarded the Power Company of the Year Award at the Global Energy Awards in 2001.<\/p>\n
In 1994, Eskom provided the most energy per capita globally at some of the cheapest rates.<\/p>\n
Yet, in 2019 Eskom provided only 65% of the electricity per capita than it did in 1994.<\/p>\n
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The country\u2019s growing population played a role, but the biggest factors were the minimal additional generation capacity added to the grid and corruption and mismanagement, which crushed Eskom.<\/p>\n
The situation is causing tremendous damage to South Africa, but there is a silver lining according to efficient Group\u2019s chief economist, Dawie Roodt.<\/p>\n
South Africans are becoming increasingly efficient in their use of electricity. This is measured using the GDP produced per 100 units of electricity.<\/p>\n
In 2007, 100 units of electricity enabled you to produce 100 units of economic production. In 2022, 130 units of economic production can be produced with the same amount of electricity.<\/p>\n
![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/03\/Silver-Lining.png\")
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This indicates greater efficiency in using electricity and a reduction in using Eskom\u2019s supply in economic production.<\/p>\n
The private sector, in particular, has become increasingly independent of Eskom and self-sufficient.<\/p>\n
The announcement of a 125% reduction in taxable income from investment in renewable energy by businesses aims to accelerate this trend even further.<\/p>\n
In short, the private sector is taking over the supply of electricity in South Africa. Data collected by PwC supports this.<\/p>\n
Over the last three years, 4,550MW of private solar generation capacity has been added to the grid. It is expected to increase to 6,850MW by the end of 2023.<\/p>\n
Private-sector renewable generation will be almost on par with the total capacity of the government\u2019s Renewable Energy Independent Power Producer Programme (REIPPP).<\/p>\n
![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/03\/REIPPP-PwC.png\")
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It indicates that privatisation, although quietly, is occurring in South Africa\u2019s electricity supply.<\/p>\n
However, as PwC notes, there are still significant hurdles to feeding private renewable energy into the grid, and South Africa will require coal-fired power for the foreseeable future.<\/p>\n
Solar generation will make a difference, but it is \u201cnot going to solve our problems\u201d, according to PwC. It has to be combined with other sources of generating electricity.<\/p>\n
By Shaun Jacobs<\/a>. This article was first published by Daily Investor and reproduced with permission. Read the original here<\/a>.<\/em><\/p>\n
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