• Eskom posted a 16bn rand profit in 2025, its first in eight years, aided by debt relief, tariff hikes, and fewer outages.
• South Africa launched 7bn rand battery projects in the Northern Cape to boost storage and support renewable integration.
• Grid reforms and new clean energy projects signal a shift toward resilience as Eskom modernizes and reduces load shedding.

South Africa’s state-owned power utility, Eskom, reported a profit after tax of 16 billion rand (approximately $927 million) for the financial year ending March 2025. This marks the company’s first full-year profit in eight years, a significant reversal from the 55-billion-rand loss posted the previous year, according to Eskom’s latest annual report. This was contained in the company’s annual report published on September 29, 2025.

This financial improvement follows substantial government debt relief, which has lowered Eskom’s debt burden and associated costs. Additionally, the National Energy Regulator of South Africa (NERSA) approved electricity tariff increases above inflation, contributing to higher revenue for the utility. Operationally, Eskom has also seen progress, with power outages reduced to 13 days in the 2024/25 financial year, compared to 329 days of load shedding the year before.

Despite coal-fired plants still accounting for approximately 80% of electricity generation, South Africa is simultaneously advancing its clean energy infrastructure. EDF Power Solutions, alongside local partners Mulilo, Pele Green Energy, and Gibb-Crede, recently began construction on a portfolio of battery energy storage projects in the Northern Cape province. The Oasis 1 portfolio comprises three sites: Nieuwehoop, Aggeneis, and Mookodi, with a combined capacity of 257 megawatts and 1,028 megawatt-hours of storage.

These battery projects, financed by Standard Bank of South Africa and ABSA at an estimated cost of 7 billion rand ($405 million), will supply power to Eskom under a 15-year power purchase agreement. The battery storage facilities are designed to strengthen the national grid and facilitate the integration of intermittent renewable energy sources, supporting South Africa’s growing renewable energy sector.

South Africa faces an electricity deficit estimated at 14.4 terawatt-hours as of 2023. To address this, alongside improving coal plant performance, the country is investing in renewable generation and grid modernization. EDF already operates wind farms with a total capacity of 145 megawatts and has nearly 1 gigawatt of renewable projects in development within South Africa.

In parallel, the National Transmission Company of South Africa (NTCSA) is being established to separate the transmission function from Eskom’s generation operations. This initiative aims to enhance the participation of independent power producers (IPPs) in the market by improving grid access.

The reduction in load shedding coincides with both improved coal plant availability and the increasing contribution of renewable energy projects supported by battery storage, indicating a shift towards a more resilient and diversified power system. Eskom’s recent profitability reflects a combination of government support, tariff adjustments, operational improvements, and an evolving energy landscape marked by investments in clean energy infrastructure and grid modernization.

By Cynthia Ebot Takang