Eskom said reported figures of R233.4 billion for Kusile and R176 billion for Medupi, do not reflect its approved budgets or recorded expenditure.
Kusile Power Station. Picture: Eskom
Eskom has dismissed reports suggesting ballooning construction costs at its Kusile and Medupi power stations, confirming that the approved budgets remain R160.5 billion and R145 billion respectively, with recorded expenditure of R155.5 billion at Kusile and R131.1 billion at Medupi.
The power utility said reported figures of R233.4 billion for Kusile and R176 billion for Medupi, published in two publications earlier this month, do not reflect its approved budgets or recorded expenditure.
Accuracy
“The accuracy of reported figures is critical to truthful, fair and responsible journalism,” Eskom noted, adding that neither publication approached the utility for comment or identified the source of their estimates.
Eskom acknowledged that both projects faced significant challenges during construction, including delays, design shortcomings, labour disruptions, contractual disputes, corruption‑related matters and cost escalations.
Budgets
However, it stressed that the official budgets remain unchanged.
The utility confirmed that Kusile achieved full commercial operation on 29 September 2025 when Unit 6 entered service, completing the station’s six‑unit, 4 800MW fleet. Medupi’s final unit entered commercial operation on 31 July 2021, completing its six‑unit programme.
“Characterising commercially operational power stations as ‘unfinished’ is inaccurate and misleading,” Eskom said. “Kusile now ranks among Eskom’s most cost‑efficient power stations, recording the second‑lowest cost of electricity generated across the Generation fleet.”
Project activities
Eskom highlighted that project close‑out activities, including defect notification periods and balance‑of‑plant works, are standard for large infrastructure projects and do not mean the stations remain under construction.
Operationally, Kusile and Medupi together contribute 9 600MW to the national grid, with year‑to‑date energy availability factors of 90% for Kusile and 85% for Medupi.
Their performance has supported Eskom’s recovery programme, enabling South Africa to experience more than 480 consecutive days without load shedding.
Financial benefits
The utility also pointed to financial benefits, noting that diesel expenditure declined from R33 billion in FY2024 to R7.1 billion in FY2026, a cumulative reduction of R25.9 billion.
Eskom underscored that both Kusile and Medupi are fully operational national assets, not projects under construction.
Kusile
Kusile is the first power station in Africa to incorporate Wet Flue Gas Desulphurisation technology, while Medupi features advanced supercritical technology designed to improve efficiency and reduce coal and water consumption.
Eskom said Kusile and Medupi collectively represent one of the largest infrastructure investments in South Africa’s democratic history and continue to play a vital role in strengthening generation reliability and energy security.
The utility said that during Medupi construction, it invested over R2.9 billion in socio-economic development initiatives aimed at addressing urgent needs within local communities.
