Energy Wheeling 101 – Understanding Energy Wheeling In SA

Energy Wheeling 101 – Understanding Energy Wheeling In SA

As South Africa continues to embrace renewable energy, the concept of energy wheeling has emerged as a key solution for transferring power across distances without the need for on-site generation. With the country’s growing demand for reliable and sustainable energy, energy wheeling allows businesses to access renewable energy, even when their operations and the power generation site are not physically located together.

Let’s break down how energy wheeling works and why it’s becoming a game-changer in the South African energy landscape.

What is Energy Wheeling?

Energy wheeling is the process of transferring electricity from a generation source, such as a solar or wind farm, to a consumer via the national grid. This is particularly useful when the generator (the renewable energy facility) and the consumer (the energy buyer) are located in different places.

In simple terms:

• A renewable energy facility generates electricity and feeds it into the national grid.
• The consumer, who is located elsewhere, draws power from the grid.
• A financial transaction takes place to match the electricity generated by the renewable facility with the electricity consumed by the buyer.

Watch this short video below, by Katherine Persson, our MD of SOLA Assets to understand how Energy Wheeling works.

How Energy Wheeling Works in South Africa

Here’s a step-by-step breakdown of how energy wheeling operates within the country:

1. Generation of Renewable Energy:
   • A renewable energy facility, such as a SOLA solar farm generates electricity. These facilities are often located in areas where renewable energy resources are most abundant, ensuring optimal energy production.
2. Transmission via the National Grid:
   • The electricity generated is not used directly on-site. Instead, it is fed into South Africa’s national grid, managed by Eskom. This allows the electricity to be “wheeled” or transported to various locations across the country.
3. Measurement of Electricity:
   • At the generation site, a meter tracks how much electricity is being produced and sent into the grid. Simultaneously, at the buyer’s site, another meter records the amount of electricity drawn from the grid.
4. Reconciliation:
   • On a monthly basis, the amount of renewable energy produced and the electricity consumed by the buyer is reconciled. This process ensures that the buyer pays for the electricity produced at the renewable energy site, while any additional electricity used from the national grid is billed separately by Eskom.
5. Financial Transaction:
   • The buyer pays the renewable energy producer for the power generated at the facility and also pays Eskom for any extra electricity drawn from the grid.

Benefits of Energy Wheeling

• Cost Savings: Energy wheeling allows companies to purchase renewable energy without the need for an on-site generation facility. This eliminates the costs and risks associated with building and maintaining an energy plant on their own.
• Sustainability: By purchasing renewable energy through wheeling, businesses can reduce their carbon footprint and contribute to South Africa’s green energy goals. Wheeling allows renewable energy to reach consumers, no matter where they are located, thereby expanding access to clean power.
• Grid Independence: Wheeling enables businesses to secure a reliable supply of renewable energy, reducing their dependence on Eskom’s coal-dominated electricity and its associated price fluctuations and reliability issues.

The Role of SOLA in Energy Wheeling

SOLA has been at the forefront of energy wheeling innovations in South Africa. In fact, we have been involved in every wheeling project currently operating in the country. All of the products we offer make use of this efficient method for delivering renewable energy to clients.

SOLA’s expertise lies in:

• Designing, building, and operating renewable energy facilities optimally placed for energy production.
• Providing cost-effective solutions for companies to purchase renewable energy without upfront costs, managing the entire project lifecycle from construction to operation.

The Future of Energy Wheeling in South Africa

As more businesses and municipalities look for sustainable and cost-effective energy solutions, energy wheeling is set to play a pivotal role in the country’s energy transition. By unlocking the ability to source renewable energy from various parts of the country, South Africa can move towards a more resilient and green energy future.

At SOLA, we’re proud to lead the charge in delivering energy wheeling solutions that make renewable energy accessible to all. If you’re interested in how energy wheeling can benefit your business, get in touch with us to learn more about our services.

Together, we can build a more sustainable, energy-secure future for South Africa.