Eskom slams inflated Kusile, Medupi cost reports, confirms official budgets

Eskom has refuted claims of inflated construction costs at its Kusile and Medupi power stations, stating that the approved budgets remain at R160.5 billion and R145 billion, respectively. The company confirmed that the recorded expenditure for Kusile is R155.5 billion and for Medupi, R131.1 billion. Reports suggesting the stations are "unfinished" as reported by certain publications are inaccurate, according to Eskom.

Both stations reached full commercial operation as expected, with Kusile's Unit 6 entering service on 29 September 2025 and Medupi's final unit on 31 July 2021.

Eskom emphasized that project close-out activities, including defect notifications and balance-of-plant works, are standard procedures for large infrastructure projects and do not imply ongoing construction. Kusile and Medupi together contribute 9 600MW to South Africa's national grid, with energy availability factors of 90% for Kusile and 85% for Medupi. Their performance has aided Eskom's recovery program, contributing to over 480 consecutive days without load shedding.

The utility noted financial benefits, with diesel expenditure decreasing from R33 billion in FY2024 to R7.1 billion in FY2026, a reduction of R25.9 billion. Kusile is the first power station in Africa to utilize Wet Flue Gas Desulphurisation technology, while Medupi features advanced supercritical technology to improve efficiency.

Together, they represent one of the largest infrastructure investments in South Africa's democratic history, playing a crucial role in enhancing generation reliability and energy security. Eskom also highlighted over R2.9 billion invested in socio-economic development initiatives during Medupi's construction.