Electricity demand slows amid economic downturn
Friday, August 08, 2025 | 110 Views |
Electricity consumption is positively related to economic activity PIC PHATSIMO KAPENG
The drop in electricity consumption comes at a time when industries have drawn back on production targets, thus requiring less electricity for production. Data from economic consultancy firm, Econsult, shows that electricity consumption has been slowing from the 3rd quarter of 2024 to the first quarter of 2025, with an overall decline of 125 GigaWatt hours (GW) across the three quarters. One gigawatt-hour represents 1 million kilowatt-hours, meaning that the 125 GWh decline in three quarters represents 125 million kWh. An average household in Botswana uses 200kWh and the drop of 125million kWh is the same as cutting 625,000 households from the grid.
The decline in Botswana's electricity consumption reflects potential problems in the country’s economic landscape. Electricity consumption is positively related to economic activity. When production at factories increases and economic output grows, the demand and consumption for electricity also grow, with the inverse being true as well. An electricity expert recently told Mmegi that the decline in mineral output that saw a temporary pause in mining production was one of the reasons why electricity demand had slowed, as mines are some of the major users of electricity. “The decline in mining activity has affected electricity demand. Firms that supply mining inputs as well have reduced production, which leads to smaller demand for electricity,” the expert shared. Debswana, the diamond mining joint venture between De Beers and the Botswana government, halted production for three months at its Orapa and Jwaneng mines as it looked to save money amid a downturn in demand.
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