Bitcoin News Today: Eskom's Energy Availability Factor Hits 60.6% in June 2025, Exploring Bitcoin Mining for Excess Capacity

South Africa’s state-run power utility, Eskom, has achieved a significant milestone with its Energy Availability Factor (EAF) reaching an average of 60.6% in June 2025. This marks the first time this year that Eskom has surpassed the 60% mark, indicating a notable improvement in the utility’s performance. This uptick comes at a critical juncture as Eskom begins to explore new opportunities, including Bitcoin mining, to leverage its excess electricity capacity.

Eskom’s improved performance is a result of reduced maintenance, better plant output, and strategic use of emergency reserves. The utility managed to avoid load-shedding through most of June and into July, a rare period of stability for the national grid. André Lourens, chief economist at Minerals Council South Africa, noted that emergency reserves were used strategically to balance the grid, even as the system came under pressure. Eskom’s Energy Availability Factor typically improves in winter as maintenance is scaled back, and the utility brought 2,500 MW of generation capacity back online ahead of a cold front, helping keep unplanned outages below the 15,000 MW threshold that often triggers Stage 2 load-shedding.

Despite these improvements, Eskom continues to face significant challenges. Electricity production remains below pre-pandemic levels, with the utility currently producing around 16,800 GWh per month, up from earlier in the year but still short of the 17,100 GWh monthly average in 2024 and far below the 19,000 GWh peak in 2019. Financially, the utility remains under pressure with electricity sales falling 16% over the past decade, from 217.9 TWh in 2014 to 183.3 TWh in 2024. Revenue, however, has risen 115% over the same period, largely due to steep tariff increases. The average electricity price rose from R0.71 per kWh in 2014 to R2.12 in 2025.

Eskom’s workforce remains bloated, with employee numbers dropping from 50,000 to 40,000 over the past decade, despite the World Bank estimating that only 14,200 are needed. Labor costs have soared, increasing nearly tenfold since the 1990s. With R403 billion ($22.7 billion) in debt, Eskom is now exploring new revenue opportunities. CEO Dan Marokane recently suggested repurposing excess electricity to support energy-intensive sectors such as AI, data centers, and Bitcoin mining.

Eskom is exploring Bitcoin mining and AI-driven data centers as potential solutions to utilize surplus generation capacity and stabilize its finances. Speaking at a conference earlier this month, Marokane said the utility is drawing lessons from the United States, where Bitcoin mining operations have contributed to grid flexibility by reducing power use during high-demand periods. Eskom is studying similar demand-response models, such as Texas-based Riot Platforms, which earned $32 million in 2023 by cutting power consumption during a heatwave. However, environmental concerns persist, with a 2024 study in Nature Communications linking major U.S. mining facilities to air pollution across state lines, while their energy use surpassed that of Los Angeles.

Although global Bitcoin mining is gradually shifting toward renewables, 52.4% as of the latest Cambridge report, natural gas remains the primary energy source, replacing coal. Eskom’s shift in strategy comes as it continues to struggle with unplanned outages and rising operating costs. From June 13 to 19, outages briefly surged to over 15,000 MW, forcing the utility to increase its use of expensive open-cycle gas turbines. Diesel spending has reached R4.51 billion so far this year—more than double the same period in 2024. The utility is also dealing with delays at the Koeberg Nuclear Power Station. The return of Unit 1 has been pushed back by at least a month after inspections revealed defects in four steam generator tubes. Eskom confirmed that the defects have been addressed in line with safety standards, following assistance from international specialists.

Despite the setbacks, Marokane said Eskom must evolve. “The business has to reinvent itself and use part of this baseload in a way that can help it manage the remainder of its debt pile,” he said. Eskom’s exploration of Bitcoin mining and AI-driven data centers represents a strategic move to leverage its excess electricity capacity and stabilize its finances, positioning South Africa for potential growth in these emerging sectors.