Moderate rise in electricity production in January, but consumption still declining
Economists say this can be partially ascribed to weak activity in energy-intensive sectors, coupled with increased generation capacity from Eskom and IPP
Electricity production increased by 0.8% year on year in January, while consumption contracted by 0.6% year on year after a 1.0% decline in December, according to figures released by Statistics SA on Thursday. Based on the available data to date, the electricity sector detracted from GDP in the first three quarters of 2016 by falling 2.9% in this period, Investec economist Kamilla Kaplan said, adding that this performance could be partially ascribed to weak activity in energy-intensive sectors. Mining contracted by 4.1% in this period while manufacturing sector activity essentially stagnated. "Weak economic activity coupled with increased generation capacity from Eskom and the Independent Power Producers (IPP) has resulted in stable electricity supply since the end of 2015. Over the coming six years, Eskom’s new build programme will progressively add capacity with Ingula, Medupi and Kusile to be fully commissioned by 2017, 2020 and 2022 respectively. More than 10GW is projected to b...
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