South Africa Power Report Q4 2014 - New Report Available

From: Fast Market Research, Inc.
Published: Mon Oct 27 2014

Our fundamental assumptions remain relevant and therefore our short- and long-term forecasts remain mostly unchanged this quarter . Eskom continues to struggle to supply reliable and stable power to the population and industry . Delays in bringing large-scale power capacity online and insufficient investment in the sector have left South Africa vulnerable to power shortages, as evidence d by rolling blackouts in Winter 2014 . The company's financial sustainability is also a concern, with an estimated revenue shortage of R225bn and pressing liquidity issues. Its debt pile is also on the rise and its financial leverage (as indicated by the net debt/equity ratio) has gradually worsened over the last few years.

Full Report Details at

In 2013, electricity generation in South Africa stood at 241.93terawatt hours (TWh), representing a 1.04% increase on the previous year. Coal-fired sources of electricity accounted for 93.88% of this figure, and we expect that coal will continue to play a major role in electricity production during the course of our forecast period, rising by an average of 2.61% to stand at 293.82TWh in 2023. Economic growth - we forecast real GDP of around 3.11% every year during our 10-year forecast period to 2023 - and demographics will both drive demand upwards.

Key Trends And Developments

* The financial pressure facing Eskom has continued to mount over the last few years as delays in bringing large power projects online has eaten into projected revenue streams and exacerbated Eskom's debt exposure. To address the issue, in August 2014 the National Energy Regulator of South Africa (Nersa) approved the regulatory clearing account (RCA) for state utility Eskom. This could effectively result in tariff increases of up to 9% for 2015/2016, on top of the additional 8% upward tariff adjustment previously granted by Nersa in November 2013 for the 2014/2015 time period. However, this was not sufficient to put the company on a more sustainable...

The South Africa Power Report features Business Monitor International (BMI)'s market assessment and independent forecasts covering electricity generation (coal, gas, oil, nuclear, hydro and non-hydro renewables), electricity consumption, trade, transmission and distribution losses and electricity generating capacity.

The South Africa Power Report also analyses the impact of regulatory changes, recent developments and the background macroeconomic outlook and features competitive landscapes comparing national and multinational operators by sales, market share, investments, projects, partners and expansion strategies.

Key Benefits

* Use BMI's independent industry forecasts for South Africa to test other views - a key input for successful budgeting and strategic planning in the power market.

About Fast Market Research

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For more information about these or related research reports, please visit our website at or call us at 1.800.844.8156.

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Contact Name: Bill Thompson
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