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
      Digital IDs will launch before year-end, government says - Maropene Ramokgopa

      Digital IDs will launch before year-end, government says

      23 January 2026
      Watts & Wheels S1E2: 'China attacks, BMW digs in, Toyota's sublime supercar'

      Watts & Wheels S1E2: ‘China attacks, BMW digs in, Toyota’s sublime supercar’

      23 January 2026
      EU decision doesn't end 'Fair Share' debate, says ACT CEO Batyi - Nomvuyiso Batyi

      EU decision doesn’t end ‘Fair Share’ debate, says ACT CEO Batyi

      23 January 2026
      Chery to take over Nissan's historic Rosslyn plant

      Chery to take over Nissan’s historic Rosslyn plant

      23 January 2026
      Intel takes another hit - Intel CEO Lip-Bu Tan. Laure Andrillon/Reuters

      Intel takes another hit

      23 January 2026
    • World
      ByteDance clinches US TikTok deal

      ByteDance clinches US TikTok deal

      23 January 2026
      Taiwan, US strike strategic AI and chip supply-chain pact - TSMC

      Taiwan, US strike strategic AI and chip supply-chain pact

      20 January 2026
      Wikipedia moves to monetise AI giants' reliance on its content

      Wikipedia moves to monetise AI giants’ reliance on its content

      15 January 2026
      Visa moves to plug stablecoins into the global payments system

      Visa moves to plug stablecoins into the global payments system

      15 January 2026
      Oracle sued as bondholders allege AI debt plans were hidden - Larry Ellison

      Oracle sued as bondholders allege AI debt plans were hidden

      15 January 2026
    • In-depth
      The top-performing South African tech shares of 2025

      The top-performing South African tech shares of 2025

      12 January 2026
      Digital authoritarianism grows as African states normalise internet blackouts

      Digital authoritarianism grows as African states normalise internet blackouts

      19 December 2025
      TechCentral's South African Newsmakers of 2025

      TechCentral’s South African Newsmakers of 2025

      18 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
      DStv dodges channel blackout in last-minute deal with Warner Bros

      Canal+ plays hardball – and DStv viewers feel the pain

      3 December 2025
    • TCS

      TCS+ | Why cybersecurity is becoming a competitive advantage for SA businesses

      20 January 2026
      Watts & Wheels S1E2: 'China attacks, BMW digs in, Toyota's sublime supercar'

      Watts & Wheels: S1E1 – ‘William, Prince of Wheels’

      8 January 2026
      TCS+ | Africa's digital transformation - unlocking AI through cloud and culture - Cliff de Wit Accelera Digital Group

      TCS+ | Cloud without culture won’t deliver AI: Accelera’s Cliff de Wit

      12 December 2025
      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
    • Opinion
      AI moves from pilots to production in South African companies - Nazia Pillay SAP

      AI moves from pilots to production in South African companies

      20 January 2026
      ANC's attack on Solly Malatsi shows how BEE dogma trumps economic reality - Duncan McLeod

      ANC’s attack on Solly Malatsi shows how BEE dogma trumps economic reality

      14 December 2025
      Netflix, Warner Bros deal raises fresh headaches for MultiChoice - Duncan McLeod

      Netflix, Warner Bros deal raises fresh headaches for MultiChoice

      5 December 2025
      BIN scans, DDoS and the next cybercrime wave hitting South Africa's banks - Entersekt Gerhard Oosthuizen

      BIN scans, DDoS and the next cybercrime wave hitting South Africa’s banks

      3 December 2025
      ANC's attack on Solly Malatsi shows how BEE dogma trumps economic reality - Duncan McLeod

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

      20 November 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 » Opinion » ‘Wheeling’: A promising solution to South Africa’s energy woes

    ‘Wheeling’: A promising solution to South Africa’s energy woes

    By Jan Fourie22 November 2021
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    “Wheeling” – the process of moving privately generated power to customers across national utility-owned power grids – is gaining some traction in South Africa’s increasingly liberalised power market.

    Against the backdrop of Eskom’s gradual unbundling of power generation, transmission and distribution, and a surge in the uptake of renewable energy, wheeling is increasingly being viewed as a feasible, scalable solution to the energy shortfalls in South Africa.

    Locally, the privatisation of power and the rise of independent power producers (IPPs) is being driven by market forces like the pricing of renewables (especially lithium-ion battery storage components), which are now low enough to make large-scale renewables-based projects cost-competitive with fossil fuel-based ones, and therefore a highly attractive investment proposition.

    Several municipalities in the country have already established an enabling legislative framework

    These market shifts are also shaped by macroeconomic strategy policies like REIPPP (the Renewable Energy Independent Power Producers Procurement Programme), the RMIPPP (the Risk Mitigation Independent Power Producers Procurement Programme) as well as the recent amendment to schedule 2 of South Africa’s Electricity Regulation Act, that raises the threshold for non-Nersa-licensed self- or distributed-generation power plants from 1MW to 100MW.

    Wheeling is common practice globally, and several municipalities in the country have already established an enabling legislative framework. It’s a path towards the circular economy principles of carbon neutrality, a goal which some South African metropoles have committed to achieving by 2050.

    Specialised tariffs

    Wheeling agreements are generally subject to certain specialised transmission tariffs, or wheeling charges, where a portion of the payments for power to the IPP are instead paid to the owners of the transmission infrastructure (in this case Eskom, but transmission could also be privatised in future as part of the national unbundling strategy).

    Where previously we’ve seen net metering (where private power producers sell power to the state utility, adding their generation capacity to the national energy grid), we’re now seeing the emergence of power wheeling in South Africa, which, in conjunction with the recent megawatt-threshold amendments, has potential to open whole new markets within the energy sector. Wheeling has thus far been successfully used in projects like the Darling Wind Farm and the Bio2Watt biomass plant, which supplies power to BMW’s Rosslyn plant.

    Wheeling will essentially allow privately generated power to be transmitted across the national grid to customers who want it, in a willing buyer, willing seller model. This will facilitate renewables-based energy transmission from sites with good wind and solar radiation to corporate, industrial, residential and civic customers whose locations may be less conducive to renewable energy production. Larger plants could conceivably provide power to numerous clients across the grid simultaneously, and conversely, disparate institutions and interest groups can band together to invest in large-scale offsite renewable power generation facilities, taking advantage of group-purchasing efficiencies and economies of scale. Independently produced power builds companies’ resilience by guarding against load shedding and allowing them to plan more effectively around ongoing operating and energy costs.

    The author, energy expert Jan Fourie

    The Municipal Energy Resilience (MER) Initiative is another promising development facilitating energy security, wheeling and the liberalisation of the energy supply. Steered by the department of economic development & tourism’s energy directorate, in conjunction with department of local government and provincial treasury, the three-year MER project aims to bolster economic resilience and energy security by supporting, developing and building capacity for renewable energy projects in the Western Cape.

    The initiative is aligned with global Covid-19 economic recovery trends that prioritise an accelerated push towards sustainability and decarbonisation. It also represents a step towards our Paris Agreement greenhouse gas emissions reduction commitments and safeguards the Western Cape’s export industry against the imminent carbon border adjustments.

    Much like REIPPPP, the MER project is innovative and unique, in that it allows a variety of technology and energy mixes, as well as flexible financing and contracting models, potentially heralding a new ecosystem of complex interrelated projects, with novel methodologies and innovative delivery systems, in which wheeling will play a crucial role.

    Energy utilities around the world are seeing the value in providing grid and wheeling services rather than simply selling energy

    Having published guidelines and tariff structures earlier this year, the George municipality is running a pilot project exploring the practicalities of wheeling, and fine-tuning the necessary legal and policy frameworks, but the MER initiative will ultimately span many municipalities across the province including Mossel Bay, Overstrand, Swartland and Stellenbosch.

    Energy utilities around the world are seeing the value in providing grid and wheeling services rather than simply selling energy. Putting wheeling tariff structures in place is an essential first step.

    In an environment where external environmental, social and governance (ESG) pressures increasingly hold sway, wheeling can enable a smooth flow into the market for renewables-based IPP projects. It can assist municipalities achieve carbon-reduction goals, and corporates to achieve their net-zero objectives. Although still nascent, the country’s wheeling agreement strategy looks promising so far. It’s also an essential component in achieving the UN’s Sustainable Development Goal 7 (ensuring universal access to affordable, reliable, sustainable energy), and the principles of a circular economy, and in the short to medium term is a crucial tool in our post-Covid economic recovery plan, and a key ingredient in initiatives that will create employment and develop capacity, while securing power for the people of South Africa.

    • The author, Jan Fourie, is an energy sector specialist and GM at Scatec, a renewables firm and winner of a recent RMIPPP bid to supply Eskom with a baseload of 150MW of electricity produced at flagship solar arrays in the Northern Cape


    Eskom Jan Fourie Scatec
    WhatsApp YouTube Follow on Google News Add as preferred source on Google
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleBlue Label remains in talks over Cell C recap
    Next Article Work or learn from anywhere: Huawei answers call for location-flexible operation

    Related Posts

    How liberalisation is rewiring South Africa's power sector

    How liberalisation is rewiring South Africa’s power sector

    21 January 2026
    No risk of load shedding after Koeberg output scaled back

    No risk of load shedding after Koeberg output scaled back

    21 January 2026
    Billions flow into renewables as South Africa races to fix its grid

    Billions flow into renewables as South Africa races to fix its grid

    14 January 2026
    Company News
    Jabra - a smarter way to sound, work and connect in the workplace

    Jabra – a smarter way to sound, work and connect in the workplace

    23 January 2026
    Domains.co.za launches South Africa's first homegrown Link in Bio tool

    Domains.co.za launches South Africa’s first homegrown Link in Bio tool

    22 January 2026
    Trends that are shaping the use of AI to improve CX - Telviva

    Trends shaping the use of AI to improve CX

    22 January 2026
    Opinion
    AI moves from pilots to production in South African companies - Nazia Pillay SAP

    AI moves from pilots to production in South African companies

    20 January 2026
    ANC's attack on Solly Malatsi shows how BEE dogma trumps economic reality - Duncan McLeod

    ANC’s attack on Solly Malatsi shows how BEE dogma trumps economic reality

    14 December 2025
    Netflix, Warner Bros deal raises fresh headaches for MultiChoice - Duncan McLeod

    Netflix, Warner Bros deal raises fresh headaches for MultiChoice

    5 December 2025

    Subscribe to Updates

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

    Latest Posts
    Digital IDs will launch before year-end, government says - Maropene Ramokgopa

    Digital IDs will launch before year-end, government says

    23 January 2026
    Watts & Wheels S1E2: 'China attacks, BMW digs in, Toyota's sublime supercar'

    Watts & Wheels S1E2: ‘China attacks, BMW digs in, Toyota’s sublime supercar’

    23 January 2026
    EU decision doesn't end 'Fair Share' debate, says ACT CEO Batyi - Nomvuyiso Batyi

    EU decision doesn’t end ‘Fair Share’ debate, says ACT CEO Batyi

    23 January 2026
    Chery to take over Nissan's historic Rosslyn plant

    Chery to take over Nissan’s historic Rosslyn plant

    23 January 2026
    © 2009 - 2026 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}