A study recently released by the South African Science and Industrial Research Council showed that South Africa is experiencing the worst power cuts in history, causing huge economic losses. In order to alleviate the "power shortage" problem, the South African government will increase investment in energy infrastructure, especially solar electric power renewable energy.
The study found that from January to August 2020, South Africa reduced its power supply by 1498 GWh, which has exceeded the figure of 1352 GWh for the entire year of last year, and the scale of power curtailment has reached a record high. It is expected that in the next two to three years, South Africa will continue to take measures to cut off electricity.
South Africa is the most industrialized economy in Africa. South Africa’s National Power Company accounts for more than 90% of the country’s power generation. However, due to the ageing of coal-fired power plant equipment, lack of maintenance, and design defects, the company has been unable to meet South Africa’s electricity demand for many years. The above-mentioned research estimates that last year, South Africa’s power cuts caused up to 120 billion rand (about 7.2 billion US dollars) in economic losses.
In recent years, although the South African government has allocated funds for rescue many times, the South African National Electric Company is still in a deep debt crisis. In view of this, the South African government plans to split and reorganize the company and gradually increase electricity prices; at the same time, South Africa will adjust its energy structure and increase investment in energy infrastructure, especially renewable energy, to alleviate the "power shortage" problem and increase Investor confidence.
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