Eskom Increases Diesel Expenditure as Available Coal Units Remain Sidelined by Grid Constraints

Eskom continues to spend millions on diesel fuel while coal-fired power stations remain underutilized. Discover the strategic impact on South Africa's energy grid.

By: AXL Media

Published: Feb 23, 2026, 8:44 AM EST

Source: Information for this report was sourced from MyBroadband - https://mybroadband.co.za/news/energy/630232-eskom-forced-to-burn-millions-in-diesel-while-coal-power-stations-sleep.html

The Financial Strain of Peaking Power Operations

Eskom has reported a significant increase in the use of its Open Cycle Gas Turbines (OCGTs), requiring the expenditure of millions of rands on diesel fuel to meet peak demand. While these turbines are designed as emergency "peaking" units, they have increasingly become a primary pillar of the utility's strategy to prevent load shedding. The reliance on diesel persists even as the utility reports better-than-expected Energy Availability Factors (EAF) across its primary coal stations. This heavy reliance on liquid fuels represents a significant drain on Eskom’s already strained operational budget, potentially complicating its long-term debt restructuring efforts and putting upward pressure on future electricity tariff applications.

The Paradox of Idle Coal Capacity

Despite having coal-fired units available for service, several remain in a state of "idleness" or are operating at significantly reduced output. This phenomenon occurs when the utility cannot safely integrate the power generated by coal into the national grid due to localized transmission constraints or maintenance requirements on the high-voltage lines. Consequently, Eskom is forced into a tactical mismatch: burning expensive diesel near load centers like the Western Cape while cheaper coal power remains trapped at stations in Mpumalanga. This lack of synchronization between generation and transmission efficiency is becoming a central point of criticism from energy analysts monitoring the utility’s 2026 performance.

TRANSFORMATIVE ANALYSIS: The Strategic Cost of Grid Reliability

The current situation exposes a fundamental shift in Eskom's strategic priorities, moving from "generation at all costs" to "reliability at high cost." By opting to burn diesel rather than pushing an aging coal fleet to its absolute limit, the utility is prioritizing grid stability and long-term plant health. However, this transformative approach carries a high "reliability premium." While it successfully avoids the immediate economic paralysis of load shedding, it shifts the burden from the consumer’s convenience to the consumer’s wallet through the Regulatory Clearing Account (RCA). This transition suggests that South Africa’s energy crisis has evolved from a simple shortage of power to a complex logistical and financial crisis where the cost of a "stable" grid may soo...