Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Eskom's profit doubles even as it sells less electricity - Mteto Nyati

      Eskom’s profit doubles even as it sells less electricity

      31 August 2026
      Eskom and business lobby call a truce over grid reform - Mteto Nyati Busi Mavuso

      Eskom and business lobby call a truce over grid reform

      31 August 2026
      Altman and Musk take their feud to the developers - Sam Altman

      Altman and Musk take their feud to the developers

      31 August 2026
      Nvidia's biggest customers are becoming its biggest threat - Jensen Huang

      Nvidia’s best customers are becoming its biggest threat

      30 August 2026
      Nasa launches telescope that will map two billion galaxies

      Nasa launches telescope that will map two billion galaxies

      30 August 2026
    • World
      AI-generated music banned from Australian charts

      AI-generated music banned from Australian charts

      26 August 2026
      Traders brace for a R4.5-trillion swing in Nvidia's value

      Traders brace for a R4.5-trillion swing in Nvidia’s value

      25 August 2026
      Russia building its own Starlink - and faster than expected - Vadym Skibitskyi

      Russia building its own Starlink – and faster than expected

      11 August 2026
      Meta AI will now tell parents if their teen is in crisis

      Meta AI will now tell parents if their teen is in crisis

      17 July 2026
      IBM shares crash 25% as AI upends software spending - Arvind Krishna

      IBM shares crash 25% as AI upends software spending

      15 July 2026
    • In-depth
      Google DeepMind CEO Demis Hassabis. Image: John Sears

      The plan to stop AI from breaking the world

      16 July 2026
      The internet has a Strait of Hormuz problem

      The internet has a Strait of Hormuz problem

      15 July 2026
      AI boom sparks rally, frenzy and fear

      AI boom sparks rally, frenzy and fear

      11 June 2026
      Every plug-in hybrid on sale in South Africa, ranked by price - Lamborghini Temerario

      Every plug-in hybrid on sale in South Africa, ranked by price

      7 June 2026
      What Wi-Fi 8 will mean for wireless networks

      What Wi-Fi 8 will mean for wireless networks

      1 June 2026
    • TCS
      Watts & Wheels S1E8: 'Tesla lands in Africa, just not here'

      Watts & Wheels S1E8: ‘Tesla lands in Africa, just not here’

      24 August 2026
      Meet the CIO | Discovery's Derek Wilcocks on AI, guardrails and growth

      Meet the CIO | Derek Wilcocks on how AI personalised Vitality

      13 August 2026
      TCS | Money just became native to the internet - Steven Boykey Sidley

      TCS | Money just became native to the internet – Steven Boykey Sidley

      12 August 2026
      TCS+ | Specops' Darren James on continuous trust in an AI world

      TCS+ | Specops’ Darren James on continuous trust in an AI world

      7 August 2026
      TCS+ | How AI is turning hardware into a subscription service - Shane van der Merwe Merchant West

      TCS+ | How AI is turning hardware into a subscription service

      6 August 2026
    • Opinion
      The fragile joint in the Capitec machine - Pambos Soteriades

      The R197-billion market the banks can’t reach

      25 August 2026
      South African tech's compounding debt problem - Jannie van Zyl

      Management consulting as we know it is over

      21 August 2026
      South African tech's compounding debt problem - Jannie van Zyl

      The most dangerous customer is the quiet one

      10 August 2026
      South African tech's compounding debt problem - Jannie van Zyl

      South African tech’s compounding debt problem

      29 July 2026
      The fragile joint in the Capitec machine - Pambos Soteriades

      Best network, worst vibes: the puzzle of SA telecoms

      20 July 2026
    • Company Hubs
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CM.com
      • Contactable
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Vox
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
      • Watts & Wheels
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Sections » Energy and sustainability » Eskom rolling out virtual wheeling – here’s how it works

    Eskom rolling out virtual wheeling – here’s how it works

    Eskom has run a successful pilot of virtual wheeling. But what is it, and how could it change South Africa's energy industry?
    By Jason van der Poel and Hannah Milner4 October 2023
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    Eskom has run a successful pilot of virtual wheeling, which will allow companies with multiple offtake sites to connect to generators using the Eskom or municipal grids.

    Electricity wheeling mechanisms play a key role in facilitating the optimal integration of renewable energy resources into the grid.

    Wheeling across high- and medium-voltage lines has been the focus of Eskom’s wheeling strategies to date, but the proposed introduction of virtual wheeling, a new product offering by Eskom, opens opportunities for companies with multiple smaller and low-voltage loads scattered across various geographies in South Africa to participate in the market.

    What is wheeling?

    Wheeling is the delivery of energy from a generator of renewable energy to an end user (the offtaker or buyer) situated in another area. This is achieved using Eskom or municipal transmission or distribution networks.

    In South Africa, wheeling arrangements have traditionally been concluded between larger generators and buyers of electricity connected at medium and high voltages (higher than 1kV). Under this approach, there is a direct relationship between the generator and the buyer. Eskom charges the generator and the buyer for the use of the Eskom grid and credits the buyer’s bill for the electricity delivered to the buyer but not supplied by Eskom at the end of each month.

    The traditional wheeling methodology works for larger buyers. However, it needs to be adapted for two primary reasons.

    The virtual wheeling platform connects buyers that have multiple offtake sites to generators…

    The first is that the traditional wheeling mechanism is designed to service large consumers of electricity, typically one generator selling to one or two buyers. It does not adequately cater for several low- to medium-voltage consumers.

    The second reason is that traditional wheeling has been inaccessible to buyers in most municipal distribution networks. Many municipalities lack the necessary wheeling protocols, including use-of-system tariffs, and do not have the infrastructure to accommodate the necessary billing, metering and data processing systems for wheeling transactions using both Eskom and municipal distribution networks to a buyer supplied by the municipality.

    In an attempt to overcome these complexities, in July 2023 Eskom announced a new product, the virtual wheeling platform.

    How will virtual wheeling work?

    The virtual wheeling platform connects buyers that have multiple offtake sites to generators via Eskom or municipal grids. This requires an automated process to collect, aggregate and report time-of-use data for energy generated and consumed by generators and buyers in order to provide a refund to the buyer for wheeled energy delivered to all of its offtake sites on a consolidated basis.

    Read: Vodacom to wheel power over Eskom’s grid

    There are three key differences between the traditional wheeling mechanism currently being implemented and the virtual wheeling platform introduced by Eskom:

    • Instead of processing a credit to an account for each offtake site of a buyer for the electricity sold by a private generator, a buyer must settle its Eskom bill in full and at the end of the month a single refund will be processed to one account of the buyer. A consolidation exercise will be undertaken through Eskom’s virtual wheeling platform to measure the energy produced by generators and used by buyers. The platform will enable Eskom to aggregate time-of-use energy generation and consumption data across multiple distributed offtaker sites for the purpose of calculating the monthly refund payable to the buyer. In summary, it will facilitate access to wheeling for low to medium energy buyers and offtakers with a distributed consumption base.
    • The virtual wheeling platform will be able to aggregate energy generation and consumption data into Eskom time-of-use periods (standard, peak and off-peak) in hourly intervals. Traditionally, energy generation and consumption data has been aggregated at monthly intervals. Eskom has stated that it is developing an API interface to generate hourly data which will be used for calculating refunds.
    • According to Eskom, to participate in virtual wheeling, buyers will be required to conclude a virtual wheeling agreement and a back-to-back virtual wheeling platform agreement with a virtual wheeling platform vendor, which is appointed by the buyer and certified by Eskom to interoperate with Eskom’s systems. This differs from traditional wheeling, which requires an amendment to the buyer’s electricity supply agreement and the generator’s connection and use-of-system agreement to identify the generator and the buyer, and to provide for the tariff offset. Under virtual wheeling, these documents remain in place and are referenced in the virtual wheeling agreements.

    What requirements will the buyer be required to satisfy?

    In addition to the virtual wheeling agreements mentioned above, buyers will be required to establish meter access for Eskom and the virtual wheeling platform with generators under their existing power purchase agreements.

    Meters will need to be linked to the virtual wheeling platform via Eskom’s meter vendor cloud. The buyer will be expected to run pre-production verification testing and produce a report for Eskom’s approval. The report will be required to show that:

    • Each consumption site has a live meter reading over a defined test period; and
    • The existing business rules are aligned with the contracted business rules agreed with Eskom.
    The authors, Jason van der Poela and Hannah Milner

    Once approved, a production account will be activated and the virtual wheeling platform will automatically begin producing scheduled monthly reconciliation reports. These reports will decide the refund to be paid to the buyer at the end of the month.

    When will virtual wheeling be rolled out by Eskom?

    In August 2023, Vodacom signed Eskom’s first Virtual Wheeling Agreement after a successful pilot phase and rigorous testing.  Some of the issues that Eskom is still considering include municipal wheeling structures, the status of buyers and municipalities in debt to Eskom, tariff and use of system charges.

    Why the shift?

    The introduction of virtual wheeling will enable buyers with multiple smaller and low- to medium-voltage offtake sites across various geographies to benefit from wheeling mechanisms. Independent power producers will have greater opportunities to sell surplus generation, which may otherwise go to waste.

    Read: ‘Virtual wheeling’ on the cards as Eskom opens up

    While Eskom will continue to offer traditional wheeling as a product, the addition of a virtual wheeling option has the potential to accelerate access to alternative energy sources and introduce much-needed additional capacity into the grid.

    • The authors are Jason van der Poel, partner, and Hannah Milner, candidate attorney, both at Webber Wentzel

    Get breaking news alerts from TechCentral on WhatsApp

    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    Eskom Webber Wentzel
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleAWS to open development centre in Kenya
    Next Article Frogfoot promises uncapped fibre internet for R10/day

    Related Posts

    Eskom's profit doubles even as it sells less electricity - Mteto Nyati

    Eskom’s profit doubles even as it sells less electricity

    31 August 2026
    Eskom and business lobby call a truce over grid reform - Mteto Nyati Busi Mavuso

    Eskom and business lobby call a truce over grid reform

    31 August 2026
    Koeberg is completely offline

    Koeberg is completely offline (update: unit 1 restored)

    28 August 2026
    Company News
    The stuff that doesn't fit on the quote - Graham Millar SevenC

    The stuff that doesn’t fit on the quote

    28 August 2026
    Can you trust the AI speaking to your customers? - 1Stream

    Can you trust the AI speaking to your customers?

    27 August 2026
    Telviva launches Viva, a digital agent built for South African businesses - Telviva CEO David Meintjes

    Telviva launches Viva, a digital agent built for South African businesses

    27 August 2026
    Opinion
    The fragile joint in the Capitec machine - Pambos Soteriades

    The R197-billion market the banks can’t reach

    25 August 2026
    South African tech's compounding debt problem - Jannie van Zyl

    Management consulting as we know it is over

    21 August 2026
    South African tech's compounding debt problem - Jannie van Zyl

    The most dangerous customer is the quiet one

    10 August 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Eskom's profit doubles even as it sells less electricity - Mteto Nyati

    Eskom’s profit doubles even as it sells less electricity

    31 August 2026
    Eskom and business lobby call a truce over grid reform - Mteto Nyati Busi Mavuso

    Eskom and business lobby call a truce over grid reform

    31 August 2026
    Altman and Musk take their feud to the developers - Sam Altman

    Altman and Musk take their feud to the developers

    31 August 2026
    Nvidia's biggest customers are becoming its biggest threat - Jensen Huang

    Nvidia’s best customers are becoming its biggest threat

    30 August 2026
    © 2009 - 2026 NewsCentral Media
    Built and maintained by Chronon
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}