Diesel generators are not a sustainable loadshedding solution – Riskonet Africa calls on businesses to establish shared power generation nodes

With the South African power crisis reaching breaking point, South African businesses need to look beyond generators for solutions, according to leading South African risk and Insurance consultancy Riskonet Africa.

South Africa's economy is at risk as load shedding continues to plague the country. The rolling blackouts, implemented by state-owned utility Eskom, have not only caused significant disruption to daily life but have also resulted in a sharp decline in economic activity.

Businesses are struggling to keep their doors open as power cuts hit at critical moments, and many have been forced to reduce their production or close down altogether. The mining sector, a major contributor to the South African economy, has been hit particularly hard, with operations grinding to a halt as a result of power shortages.

The government has announced plans to address the crisis, but South Africans are in doubt about whether they are enough to turn the tide. The country's energy crisis is a complex problem that requires a comprehensive solution. According to Riskonet’s Principal of Strategic Risk Volker Von Widdern, it’s time for businesses to consider long-term solutions other than generators.

“There are several manufacturing businesses that require continuous power at high levels, which cannot be supplied by diesel generators. High levels of load shedding then make it extremely difficult to plan for continuous production runs because they are frequently interrupted,” Von Widdern explains. “This may mean that raw material doesn't complete certain stages of conversion and will be wasted because it cannot be re-processed, among other concerns,” he adds.

According to Von Widdern, strategic risk management should be aligned with the organisation's strategic goals. This means that alternative methods of achieving economic results should be explored, particularly when a resource constraint such as power is a major risk. Medium to long-term planning for alternative power supplies and the support of utilities in order to keep manufacturing processes reliable should be explored.

“The cost of business interruption arising from load shedding is surely much higher than the cost of an industrial facility investing in renewable options, such as a gas turbine, which can then support the power needs of a regional node,” says Von Widdern.

“Whatever the solution, we need to start taking matters into our own hands in a way that aligns with sustainable business practices and supports our strategic goals”.