https://newsletter.en.creamermedia.com
Business|Energy|Engineering|engineering news|Eskom|Financial|Generator|Power|Service|Contracting
Business|Energy|Engineering|engineering news|Eskom|Financial|Generator|Power|Service|Contracting
business|energy|engineering|engineering-news|eskom|financial|generator|power|service|contracting

Eskom planning ‘open day’ to market newly launched virtual wheeling solution

9th May 2025

By: Terence Creamer

Creamer Media Editor

     

Font size: - +

Eskom intends hosting an open day for independent power producers (IPPs) and aggregators in the near future to market its virtual wheeling solution, which was officially launched at the end of March.

The launch followed on from a pilot phase conducted in partnership with telecommunications group Vodacom, which played a key role in the development of the concept.

Eskom reports that the commercial model has undergone only minor changes since the pilot, with these relating primarily to the contracting model, as well as some updates to business rules.

No virtual wheeling contracts have as yet been concluded, including with Vodacom, but Eskom says it has received a number of enquiries.

While the utility is currently legally opposing the licensing of some traders, it tells Engineering News that the product remains open to traders, and that each application will be assessed based on its merits.

“A trader that is also an IPP can naturally contract for wheeling,” Eskom said in response to questions.

Eskom explains that virtual wheeling allows an entity, known as the buyer, to purchase electricity from an IPP and have that energy virtually allocated to multiple grid-connected end-users.

The buyer of the energy does this by signing a power purchase agreement with an IPP and then contracting with customers connected to the Eskom or municipal grids.

The buyer applies to Eskom to virtually wheel the electricity being purchased from the IPP to the multiple end consumers over a specified period, and Eskom then links these grid-connected customers to the transaction, alongside the generator.

Monthly claims are submitted after the electricity is consumed and paid for by the grid-connected customers.

As this transaction is retrospective, the grid-connected customer is obliged to pay their utility bill as normal and Eskom will then ‘refund’ the buyer for the energy being claimed at the prescribed rate.

In other words, under virtual wheeling the end-user's bill and contract is unchanged and energy transactions are processed separately through Eskom.

It is designed primarily to offer a more scalable and administratively simplified model for aggregators and corporates, without dislodging municipal distributors. Although, Eskom will implement virtual wheeling only with municipalities in financial good standing with itself.

Virtual wheeling is, thus, distinct from existing bilateral and multilateral wheeling agreements, where there is a direct and visible relationship between the generator and the customer, and the grid-tied customer’s electricity supply agreement is amended.

“Eskom will market the solution as part of the service offering it has available [and] also intends to have an open day for IPPs in the near future,” the utility states.

Edited by Creamer Media Reporter

Comments

Showroom

Weir
Weir

Weir is a global leader in mining technology. We recognise that our planet’s future depends on the transition to renewable energy, and that...

VISIT SHOWROOM 
Werner South Africa Pumps & Equipment (PTY) LTD
Werner South Africa Pumps & Equipment (PTY) LTD

For over 30 years, Werner South Africa Pumps & Equipment (PTY) LTD has been designing, manufacturing, supplying and maintaining specialist...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Magazine round up | 09 May 2025
Magazine round up | 09 May 2025
9th May 2025

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.27 0.365s - 150pq - 2rq
Subscribe Now