What is electricity wheeling?

Think of Eskom’s grid as a national toll road

Instead of buying electricity generated by Eskom, a company buys electricity from a private wind or solar farm somewhere else in the country. That electricity is then “wheeled” across Eskom’s transmission network to the customer, with Eskom charging a fee for using its infrastructure

In Sasol’s case:

Wind power is generated in the Eastern Cape.

It travels through Eskom’s transmission network

Sasol uses that electricity at Secunda in Mpumalanga

Eskom earns transmission fees but doesn’t generate the electricity

This model is becoming one of the biggest structural shifts in South Africa’s energy market because companies no longer have to build renewable plants next to their factories

The Grid Is Becoming South Africa’s Next Big Marketplace

A few years ago companies were asking, “How do we escape Eskom?”

Today they’re asking, “How do we use the grid differently?”

Tiger Brands is building solar. Estates are installing private energy systems. Universities are becoming their own power producers

Sasol is now wheeling 330MW of wind power across the country to Secunda, with another 700MW already under construction

This is the rise of energy as a network, where electricity is generated where it makes the most economic sense and delivered wherever it’s needed

The companies that win over the next decade won’t necessarily generate the cheapest electricity. They’ll secure the smartest energy contracts

South Africa’s energy transition isn’t being led by a single mega-project. It’s happening one corporate power purchase agreement at a time.

For more info check out our Wheeled Info Page

Contact us to see if your business qualifies for electricity wheeling.

Reference: Rocco Strydom