Eskom eyes Mozal, exports and new industry for its surplus power
South African utility Eskom is seeking to boost industrial electricity demand by offering discounted tariffs to smelters and other large consumers. The company aims to utilize its surplus generation capacity as it reports a second consecutive year of profit.
Why it matters
Eskom's strategy to stabilize its financial health through industrial demand is critical for South Africa's energy security and economic growth.
Eskom is looking to bring back lost industrial demand, including from the Mozal aluminium smelter in Mozambique, while increasing electricity exports as it seeks customers for surplus generation capacity.
In an interview with Business Day, group CEO Dan Marokane said the return of Mozal could happen within a year if its shareholders finalise agreements, providing a relatively quick source of additional electricity demand after Eskom lost significant industrial consumption.
Eskom’s generation performance has improved, while the utility on Monday reported a second consecutive annual profit of R30.3bn for the year to end March 2026. Electricity sales volumes fell 6.2% during the year, with industrial demand particularly weak, down 22.5%.
Marokane said the loss of 9.7 terawatt-hours of electricity demand during the year was dominated by smelters, but some of that demand could return after agreements reached with smelter customers.
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