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  • What are the Growth Opportunities for the South African Diesel Genset Sector?
    Innovation, integration, and transition to renewable energy sources drive future growth opportunities

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    South Africa is arguably sub-Saharan Africa’s most developed economy and home to the region’s largest energy sector.

    • However, the country’s chronic energy crisis, most evident from the frequent loadshedding, largely stems from the failure of the national power utility, Eskom, to provide reliable, constant power supply due to its ailing coal-powered fleets and insufficient maintenance of the transmission and distribution network.

    • The poor condition of South Africa’s national T&D network makes it prone to frequent unscheduled breakdowns, theft, and vandalization.

    • The sector is looking at alternative backup power sources, such as diesel-powered generators, to avoid further operational losses. While population growth, higher living standards, and increased industrial/mining activity drive demand for diesel gensets, alternative technologies such as renewable sources (wind, solar), battery energy storage systems, and gas generators are increasingly popular, restraining the diesel genset growth.

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