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
      Nvidia storms the Windows PC market with RTX Spark - Jensen Huang

      Nvidia storms the Windows PC market with RTX Spark

      1 June 2026
      Dell guns for MacBook Neo with low-cost laptop

      Dell guns for MacBook Neo with low-cost laptop

      1 June 2026
      Telkom reports this Tuesday: the real story will be in the detail - Serame Taukobong

      Telkom reports this Tuesday: the real story will be in the detail

      31 May 2026
      SA telecoms industry veteran appointed to top Eskom job - Junaid Munshi

      SA telecoms industry veteran appointed to top Eskom job

      29 May 2026
      The hidden cost of social media age bans is everyone's privacy

      The hidden cost of social media age bans is everyone’s privacy

      29 May 2026
    • World
      Nvidia's first CPUs to debut in Windows laptops this week

      Nvidia CPUs to debut in Windows laptops this week

      31 May 2026
      Watch: Bezos rocket erupts in fireball during ground test

      Watch: Bezos rocket erupts in fireball during ground test

      29 May 2026
      AI boom hands Samsung chip workers life-changing bonuses

      AI boom hands Samsung chip workers life-changing bonuses

      27 May 2026
      Luce lit: Ferrari unveils its first electric car

      Luce lit: Ferrari unveils its first electric car

      26 May 2026
      Huawei claims chip design breakthrough

      Huawei claims chip design breakthrough

      25 May 2026
    • In-depth
      Alfa's electric rebel - Alfa Romeo Junior Elettrica Veloce

      Alfa’s electric rebel

      29 April 2026
      Africa switches on as Europe dims the lights

      Africa switches on as Europe dims the lights

      9 April 2026
      The biggest untapped EV market on Earth is hiding in plain sight

      The biggest untapped EV market on Earth is hiding in plain sight

      1 April 2026
      AI, cybersecurity power standout year for Datatec - Jens Montanana

      The R16-billion tech giant hiding in plain sight

      26 March 2026
      The last generation of coders

      The last generation of coders

      18 February 2026
    • TCS
      TCS+ | The Up&Up Group on the hidden cost of AI - Jason Harrison

      TCS+ | The Up&Up Group on the hidden cost of AI

      13 May 2026
      Michael Rossouw

      TCS+ | The retirement decision most South Africans get wrong

      6 May 2026
      TCS | The Cape Town start-up listening for TB with AI - Braden van Breda

      TCS | The Cape Town start-up listening for TB with AI

      4 May 2026

      TCS+ | ‘The ISP for ISPs’: Vox’s shift to wholesale aggregator

      20 April 2026
      TCS | Werner Lindemann on how AI is rewriting the infosec rulebook

      TCS | Werner Lindemann on how AI is rewriting the infosec rulebook

      15 April 2026
    • Opinion
      Treasury's crypto crackdown is a betrayal of Mandela's promise - Duncan McLeod

      Treasury’s crypto crackdown is a betrayal of Mandela’s promise

      22 May 2026
      South Africa is sleepwalking into another AI policy failure - Celeste Labuschagne

      South Africa is sleepwalking into another AI policy failure

      20 May 2026
      AI won't fix your culture - it will expose it - Jackie Kennedy

      AI won’t fix your culture – it will expose it

      19 May 2026
      Treasury's crypto crackdown is a betrayal of Mandela's promise - Duncan McLeod

      Free calls, dead voice and Shameel Joosub’s Spanish ghost

      22 April 2026
      The conflict of interest at the heart of PayShap's slow adoption - Cheslyn Jacobs

      The conflict of interest at the heart of PayShap’s slow adoption

      26 March 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 Telecom
      • 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
      • 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
      • Motoring
      • Policy and regulation
      • 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
    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    Eskom Jan Fourie Scatec
    WhatsApp YouTube
    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

    SA telecoms industry veteran appointed to top Eskom job - Junaid Munshi

    SA telecoms industry veteran appointed to top Eskom job

    29 May 2026
    Eskom breaks ground on R1.2-billion Lethabo solar plant

    Eskom breaks ground on R1.2-billion Lethabo solar plant

    27 May 2026
    Cape Town pioneers pooled wheeling of renewable electricity

    Cape Town pioneers pooled wheeling of renewable electricity

    25 May 2026
    Company News
    The remarkable story of Lesaka's Lincoln Mali

    The remarkable story of Lesaka’s Lincoln Mali

    1 June 2026
    Why most workforce engagement changes nothing - Change Logic

    Why most workforce engagement changes nothing

    29 May 2026
    Arctic Wolf takes aim at South Africa's security blind spots - Jason Oehley

    Arctic Wolf takes aim at South Africa’s security blind spots

    29 May 2026
    Opinion
    Treasury's crypto crackdown is a betrayal of Mandela's promise - Duncan McLeod

    Treasury’s crypto crackdown is a betrayal of Mandela’s promise

    22 May 2026
    South Africa is sleepwalking into another AI policy failure - Celeste Labuschagne

    South Africa is sleepwalking into another AI policy failure

    20 May 2026
    AI won't fix your culture - it will expose it - Jackie Kennedy

    AI won’t fix your culture – it will expose it

    19 May 2026

    Subscribe to Updates

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

    Latest Posts
    Nvidia storms the Windows PC market with RTX Spark - Jensen Huang

    Nvidia storms the Windows PC market with RTX Spark

    1 June 2026
    Dell guns for MacBook Neo with low-cost laptop

    Dell guns for MacBook Neo with low-cost laptop

    1 June 2026
    The remarkable story of Lesaka's Lincoln Mali

    The remarkable story of Lesaka’s Lincoln Mali

    1 June 2026
    Telkom reports this Tuesday: the real story will be in the detail - Serame Taukobong

    Telkom reports this Tuesday: the real story will be in the detail

    31 May 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}