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
      Big Microsoft 365 price increases coming next year

      Big Microsoft price increases coming next year

      5 December 2025
      Vodacom to take control of Safaricom in R36-billion deal - Shameel Joosub

      Vodacom to take control of Safaricom in R36-billion deal

      4 December 2025
      Black Friday goes digital in South Africa as online spending surges to record high

      Black Friday goes digital in South Africa as online spending surges to record high

      4 December 2025
      BYD takes direct aim at Toyota with launch of sub-R500 000 Sealion 5 PHEV

      BYD takes direct aim at Toyota with launch of sub-R500 000 Sealion 5 PHEV

      4 December 2025
      'Get it now': Takealot in new instant deliveries pilot

      ‘Get it now’: Takealot in new instant deliveries pilot

      4 December 2025
    • World
      Amazon and Google launch multi-cloud service for faster connectivity

      Amazon and Google launch multi-cloud service for faster connectivity

      1 December 2025
      Google makes final court plea to stop US breakup

      Google makes final court plea to stop US breakup

      21 November 2025
      Bezos unveils monster rocket: New Glenn 9x4 set to dwarf Saturn V

      Bezos unveils monster rocket: New Glenn 9×4 set to dwarf Saturn V

      21 November 2025
      Tech shares turbocharged by Nvidia's stellar earnings

      Tech shares turbocharged by stellar Nvidia earnings

      20 November 2025
      Config file blamed for Cloudflare meltdown that disrupted the web

      Config file blamed for Cloudflare meltdown that disrupted the web

      19 November 2025
    • In-depth
      Jensen Huang Nvidia

      So, will China really win the AI race?

      14 November 2025
      Valve's Linux console takes aim at Microsoft's gaming empire

      Valve’s Linux console takes aim at Microsoft’s gaming empire

      13 November 2025
      iOCO's extraordinary comeback plan - Rhys Summerton

      iOCO’s extraordinary comeback plan

      28 October 2025
      Why smart glasses keep failing - no, it's not the tech - Mark Zuckerberg

      Why smart glasses keep failing – it’s not the tech

      19 October 2025
      BYD to blanket South Africa with megawatt-scale EV charging network - Stella Li

      BYD to blanket South Africa with megawatt-scale EV charging network

      16 October 2025
    • TCS
      TCS+ | How Cloud on Demand helps partners thrive in the AWS ecosystem - Odwa Ndyaluvane and Xenia Rhode

      TCS+ | How Cloud On Demand helps partners thrive in the AWS ecosystem

      4 December 2025
      TCS | MTN Group CEO Ralph Mupita on competition, AI and the future of mobile

      TCS | Ralph Mupita on competition, AI and the future of mobile

      28 November 2025
      TCS | Dominic Cull on fixing South Africa's ICT policy bottlenecks

      TCS | Dominic Cull on fixing South Africa’s ICT policy bottlenecks

      21 November 2025
      TCS | BMW CEO Peter van Binsbergen on the future of South Africa's automotive industry

      TCS | BMW CEO Peter van Binsbergen on the future of South Africa’s automotive industry

      6 November 2025
      TCS | Why Altron is building an AI factory - Bongani Andy Mabaso

      TCS | Why Altron is building an AI factory in Johannesburg

      28 October 2025
    • Opinion
      Your data, your hardware: the DIY AI revolution is coming - Duncan McLeod

      Your data, your hardware: the DIY AI revolution is coming

      20 November 2025
      Zero Carbon Charge founder Joubert Roux

      The energy revolution South Africa can’t afford to miss

      20 November 2025
      It's time for a new approach to government IT spend in South Africa - Richard Firth

      It’s time for a new approach to government IT spend in South Africa

      19 November 2025
      How South Africa's broken Rica system fuels murder and mayhem - Farhad Khan

      How South Africa’s broken Rica system fuels murder and mayhem

      10 November 2025
      South Africa's AI data centre boom risks overloading a fragile grid - Paul Colmer

      South Africa’s AI data centre boom risks overloading a fragile grid

      30 October 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • 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
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Sections » Energy and sustainability » Virtual wheeling offers South Africa a glimmer of light

    Virtual wheeling offers South Africa a glimmer of light

    Virtual wheeling, being trialled by Vodacom and Eskom, could be one of the answers to the ongoing energy crisis.
    By Sandra Laurence8 October 2023
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    Virtual wheeling, a digital platform that is up and running as a pilot scheme between Eskom and Vodacom, could be one of the answers to South Africa’s ongoing energy crisis.

    Jacques de Vos, CEO of Mezzanine, a Vodacom subsidiary, told TechCentral that Vodacom is experimenting with a “validating approach at a Midrand plant” and that the project is a “journey”, but said the ultimate aim is to get more “green electrons in the pool”.

    “We need more buyers,” he said, “especially big commercial companies, which will involve the banks and boost the economy”.

    “We need more buyers, especially big commercial companies which will involve the banks and boost the economy

    One of the solutions to the energy crisis in South Africa has been the removal of the generation licensing threshold, which has accelerated the entry of independent power producers (IPPs). This also aligns with the ambition of the “Just Energy Transition” to lower greenhouse gas emissions and help to address decarbonisation targets, which could help offset trade-related carbon taxes.

    Traditionally, IPP-generated electricity enters the Eskom national grid via two mechanisms: the government’s renewable IPP programme, and wheeling.

    Wheeling is the movement of energy from a private generation source (IPP) to a load customer via the existing grid infrastructure. It is a financial transaction, where charges are raised for the use of the grid and where the wheeled energy (the energy delivered but not supplied by Eskom) is accounted for in the form of a credit (from Eskom) to the buyer.

    Wheeling was introduced by Eskom in 2008 and has traditionally been between larger generators and heavy electricity users connected at voltages higher than 1kV.

    Administratively complex

    It is not easily scalable as it requires contractual amendments to existing and legacy agreements and – where offtaking (buying) occurs within municipalities – for the municipalities to be in good standing.

    It is also administratively complex for Eskom to manage and, as a result, third-party wheeling has largely been restricted to only large Eskom-connected buyers. It does not cater for low- and medium-voltage industry stakeholders, which make up the bulk of enterprises in South Africa.

    To accommodate this demand, a concept called “virtual wheeling” is being developed to connect buyers with multiple offtake sites –including those obtaining energy from any of the 165 municipalities licensed to sell electricity – to renewable energy generators via the Eskom or municipal grids.

    Read: Surge in rooftop solar is hurting Eskom

    A virtual wheeling platform digital tool can be used to collect, aggregate, process and report smart meter data to Eskom for energy generation and consumption. This is necessary for Eskom to understand what a buyer has consumed in total against what the buyer has committed to purchase from IPPs. Eskom uses the aggregate data to calculate a wheeled energy refund (not a credit, as with traditional wheeling) to the buyer.

    The refund is for the energy supplied to the Eskom grid by the IPPs that are funded by the private sector. It is processed at the end of a calendar month and is paid to the buyer at Eskom-determined rates (which exceeds what the buyer pays the IPP for energy per unit).

    To participate in virtual wheeling, the buyer needs to enter into a virtual wheeling agreement with Eskom and a back-to-back virtual wheeling platform agreement with a vendor appointed by the buyer certified by Eskom to operate with Eskom systems.

    The benefit to Eskom, its shareholders and all energy users is the ability to leverage private-sector balance sheets to fund the generation of “green” energy, which it is hoped at scale will alleviate load shedding and “raise the tide” for all citizens and businesses.

    In August, Vodacom signed its first such agreement with Eskom, although this arrangement is not unique to the mobile operator.

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

    Because it is a commercial company, Vodacom is more agile than Eskom, and the pilot system has now become operational as a digital system from Vodacom IPPs to areas where power is required.

    The technical side of the platform is ready – all that remains now is for Eskom to approve certain contractual agreements for it to be rolled out on a wider scale to South Africa’s grid.

    The estimated roll-out is at the end of 2024, but stakeholders are hoping that it might happen sooner.  – © 2023 NewsCentral Media

    Get breaking news alerts from TechCentral on WhatsApp



    Eskom Jacques de Vos Mezzanine Vodacom
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleTCS | The Information Regulator bares its teeth – an interview with Pansy Tlakula
    Next Article Surge in rooftop solar is hurting Eskom

    Related Posts

    Vodacom to take control of Safaricom in R36-billion deal - Shameel Joosub

    Vodacom to take control of Safaricom in R36-billion deal

    4 December 2025
    Building trust in a digital world: Vodacom Business's approach to security

    Building trust in a digital world – the Vodacom Business approach to security

    4 December 2025
    Eskom targets 2027 approval for new 5.2GW nuclear facility

    Eskom targets 2027 approval for new 5.2GW nuclear facility

    2 December 2025
    Company News
    AI is not a technology problem - iqbusiness

    AI is not a technology problem – iqbusiness

    5 December 2025
    Telcos are sitting on a data gold mine - but few know what do with it - Phillip du Plessis

    Telcos are sitting on a data gold mine – but few know what do with it

    4 December 2025
    Unlock smarter computing with your surface Copilot+ PC

    Unlock smarter computing with your Surface Copilot+ PC

    4 December 2025
    Opinion
    Your data, your hardware: the DIY AI revolution is coming - Duncan McLeod

    Your data, your hardware: the DIY AI revolution is coming

    20 November 2025
    Zero Carbon Charge founder Joubert Roux

    The energy revolution South Africa can’t afford to miss

    20 November 2025
    It's time for a new approach to government IT spend in South Africa - Richard Firth

    It’s time for a new approach to government IT spend in South Africa

    19 November 2025

    Subscribe to Updates

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

    Latest Posts
    Big Microsoft 365 price increases coming next year

    Big Microsoft price increases coming next year

    5 December 2025
    AI is not a technology problem - iqbusiness

    AI is not a technology problem – iqbusiness

    5 December 2025
    Vodacom to take control of Safaricom in R36-billion deal - Shameel Joosub

    Vodacom to take control of Safaricom in R36-billion deal

    4 December 2025
    Black Friday goes digital in South Africa as online spending surges to record high

    Black Friday goes digital in South Africa as online spending surges to record high

    4 December 2025
    © 2009 - 2025 NewsCentral Media
    • 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}