Eskom Crisis Fund – South Africa’s ongoing energy crisis has prompted an urgent and coordinated response from the government and key stakeholders. In a major development dated 20 September 2025, Eskom has received official approval to tap into the Eskom Crisis Fund for emergency diesel generator backup. This move comes as the country braces for a potentially harsh winter season, with peak energy demand expected to strain the already fragile power grid. The approval signals a turning point in Eskom’s immediate energy recovery strategy. The fund will be used to secure high-capacity diesel generators to stabilize electricity supply and prevent the recurrence of Stage 6 or higher load-shedding. Energy analysts have long warned of the winter power crunch, especially given Eskom’s aged infrastructure and the lag in renewable energy integration. The diesel generator backup plan is part of a broader load-shedding mitigation blueprint aimed at boosting short-term supply resilience while long-term reforms continue. The government’s swift action is a direct response to rising public pressure, business disruption, and declining investor confidence caused by inconsistent power availability. With this critical funding now unlocked, Eskom is set to procure and deploy large-scale diesel generator units at strategic points across the country. These generators will function as on-demand power sources during peak hours, ensuring key sectors and regions are prioritized for uninterrupted electricity. The move is also expected to support hospitals, water pumping stations, and industrial zones – all of which suffer heavily during prolonged blackouts. Eskom’s interim diesel strategy will act as a lifeline this winter, giving authorities and engineers breathing room to finalize long-term infrastructure overhauls. Here’s a detailed look at how this funding will reshape the immediate energy landscape in South Africa.
Eskom Diesel Generator Plan Approved – What It Means
The Eskom Crisis Fund’s latest approval means emergency energy solutions are now set in motion just in time for winter’s peak demand.
- Approval granted on 20 Sept 2025 after urgent cabinet energy committee meeting
- Up to R12 billion allocated for procurement and deployment of diesel generators
- Emergency generation capacity estimated at 1,800 MW
- Deployment planned across 9 provinces focusing on urban and critical infrastructure hubs
- Temporary solution while grid maintenance and renewable projects continue
- Generators expected to run during peak periods and emergencies
- Managed in partnership with Independent Power Producers (IPPs)
Diesel Generator Rollout Timeline
The generator procurement and deployment have been broken into phases to accelerate energy availability.
| Phase | Timeframe | Key Actions | Estimated Output | Cost Estimate | Locations Targeted | Stakeholders Involved |
|---|---|---|---|---|---|---|
| 1 | Oct – Nov 2025 | Procurement finalization | 600 MW | R4 Billion | Gauteng, Western Cape | Eskom, DPE |
| 2 | Dec 2025 | Generator delivery and setup | 500 MW | R3 Billion | KwaZulu-Natal, Free State | Eskom, IPPs |
| 3 | Jan 2026 | Integration into national grid | 400 MW | R2.5 Billion | Eastern Cape, Limpopo | Eskom, DoE |
| 4 | Feb 2026 | Additional deployment for resilience | 300 MW | R2.5 Billion | Mpumalanga, North West | Eskom, Municipalities |
Why Diesel and Not Renewables?
While diesel generation isn’t a long-term solution, its rapid deployment ability makes it ideal for emergency supply during winter.
- Renewable energy projects have long lead times
- Grid still lacks adequate storage and integration tech
- Diesel can be installed and operational in 4-8 weeks
- Minimal site preparation needed compared to solar/wind farms
- National Treasury approved diesel as a “gap measure” for urgent needs
Challenges With Diesel Dependency
Though effective short-term, there are concerns about cost, emissions, and sustainability.
| Concern | Detail |
|---|---|
| Cost of Fuel | Diesel is significantly more expensive than renewables per kWh |
| Environmental Impact | High carbon emissions and air pollutants |
| Logistical Strain | Fuel transport and storage limitations |
| Overreliance Risk | May delay investments in cleaner alternatives |
| Maintenance Demands | Generators require frequent upkeep and skilled technicians |
Strategic Areas to Receive Priority Power
Eskom’s deployment strategy focuses on minimizing impact on essential services and economic nodes.
- Hospitals and healthcare networks
- Water purification and pumping stations
- Industrial zones with high economic output
- Food storage and refrigeration facilities
- Police, emergency, and security centers
- Urban residential clusters with high population density
Regional Breakdown of Generator Allocation
A region-specific map ensures equitable and strategic use of diesel generation during peak demand.
| Province | MW Allocated | Key Infrastructure Supported |
|---|---|---|
| Gauteng | 350 MW | Hospitals, urban centers, data centers |
| Western Cape | 300 MW | Emergency services, grid bottleneck areas |
| KwaZulu-Natal | 250 MW | Manufacturing zones, water stations |
| Eastern Cape | 200 MW | Critical services, storage depots |
| Mpumalanga | 150 MW | Power station support and rural areas |
| Free State | 150 MW | Transport and fuel depot backups |
| Limpopo | 100 MW | Mining operations and agricultural sectors |
| North West | 150 MW | Community hospitals and local government buildings |
| Northern Cape | 100 MW | Remote facilities and telecom towers |
How Will This Affect Load-Shedding?
This emergency backup aims to stabilize load-shedding levels and avoid Stage 6 or above scenarios.
- Diesel generators expected to cover peak hour shortages
- Load-shedding frequency projected to reduce by 30–40%
- Emergency reserves increased to buffer against station outages
- Improved response to sudden demand spikes or breakdowns
Updated Load-Shedding Schedule – Winter Forecast
| Stage | Duration per day (Est.) | Areas Affected (New) | Expected Frequency |
|---|---|---|---|
| Stage 1 | 1-2 hours | None | Rare |
| Stage 2 | 2-4 hours | Minor suburbs | Possible weekly |
| Stage 3 | 3-5 hours | All residential zones | During cold fronts |
| Stage 4 | 4-6 hours | Industrial and urban mix | Peak periods |
| Stage 5 | 5-7 hours | Widespread | Only during faults |
| Stage 6 | 6-8 hours | Nationwide | Avoided with diesel |
Economic Benefits of Short-Term Stability
Stabilizing electricity through diesel use will have immediate positive ripple effects on South Africa’s economy.
- Reduction in business downtime and lost production
- Retail and manufacturing sectors regain operational hours
- Stabilization of export commitments in mining/agriculture
- Improved investor sentiment in energy and infrastructure sectors
- Job creation through generator operation and logistics
Criticism and Public Sentiment
Despite its effectiveness, the plan has drawn criticism from environmental groups and economists.
- Diesel is a pollutant-heavy fuel that contradicts climate goals
- Some believe the R12 billion could have boosted renewable projects
- Concern that short-term fixes may reduce urgency for reform
- Public skeptical of long-term viability unless backed by solid transition plan
A Just Transition Still Necessary
Experts warn that while diesel bridges the gap, South Africa must not delay its path to clean energy.
- Wind and solar investments must continue without pause
- Funding must prioritize energy storage and smart grid tech
- Eskom needs structural reform to decentralize energy generation
- Regulatory support essential for private sector renewables
- Public education and incentives for household solar must expand
Key Financial and Technical Details at a Glance
| Item | Value / Detail |
|---|---|
| Total Budget | R12 Billion |
| Fund Source | Eskom Crisis Fund (State-backed) |
| Generator Units | 350 Units Planned |
| Average Runtime Per Day | 3–5 Hours (Peak Periods Only) |
| Fuel Consumption Estimate | 1.2 million liters/week |
| Partnering Agencies | Eskom, DPE, IPPs, Municipalities |
| Estimated Reduction in Load-Shedding | 30–40% |
| Duration of Diesel Backup Phase | Oct 2025 – March 2026 |
Frequently Asked Questions (FAQs)
Q1: Will the diesel generators run all day?
No, they will only operate during peak demand hours or emergencies.
Q2: How long will this diesel plan last?
The initial phase runs from October 2025 to March 2026, covering the winter peak.
Q3: Isn’t diesel bad for the environment?
Yes, diesel emits more CO₂ than renewables. However, it’s a temporary solution while other projects ramp up.
Q4: Who funds the Eskom Crisis Fund?
It is state-backed and includes emergency fiscal reallocations and donor contributions.
Q5: Will this end load-shedding completely?
No, but it will significantly reduce its frequency and severity.
Q6: Can this plan be expanded if needed?
Yes, the fund includes provisions for scaling based on energy demand fluctuations.
While diesel generation is far from ideal, it offers a critical stopgap that South Africa urgently needs to weather the 2025 winter without plunging into deeper power cuts. This interim move must, however, be followed by unwavering commitment to clean, decentralized, and sustainable power solutions for the future.