By Katherine Persson, MD: Assets

South Africa’s energy transition is often discussed in terms of megawatts, solar plants and battery storage systems. While these technologies remain critical, there is another development quietly reshaping the electricity sector: energy wheeling.

A recent opinion piece published by Engineering News described electricity wheeling as the “silent winner” of South Africa’s energy transition. While generation assets may attract the headlines, wheeling is rapidly becoming the mechanism that enables renewable energy to reach customers, unlocks private sector investment and supports the emergence of a more competitive electricity market.

Energy wheeling is the “silent winner” of South Africa’s energy transition because it allows businesses to buy cheaper, private renewable power from anywhere in the country and “wheel” (transport) it through Eskom and municipal grids.

At SOLA, we believe the future of energy is not only about building generation capacity. It is about creating pathways for that energy to move efficiently from where it is generated to where it is needed. That is why energy wheeling has become a central pillar of our strategy.

From generation assets to energy markets

For much of South Africa’s electricity history, power flowed in one direction: from large centralised generators to customers through a vertically integrated system.

Today, that model is evolving. The growth of private renewable energy generation, regulatory reform and increasing demand for energy security have created the foundations for a more dynamic electricity market. Businesses are no longer limited to buying electricity from a single source. Instead, they are increasingly able to procure renewable energy directly from Independent Power Producers (IPPs) through innovative commercial arrangements.

This shift is significant because it changes how electricity is valued and traded. Success in the future electricity market will not depend solely on who owns generation assets, but also on who can connect buyers and sellers efficiently, manage risk and deliver flexible energy solutions. In this environment, energy wheeling is emerging as one of the most important enablers of market participation.

Why wheeling matters

At its simplest, energy wheeling allows electricity generated in one location to be transported through the national grid and consumed by a customer elsewhere.

This creates opportunities that were previously impossible.

A business operating in Johannesburg can access solar energy generated in the Northern Cape. A retailer with multiple sites across the country can procure renewable electricity through a single Power Purchase Agreement (PPA). Industrial energy users can decarbonise operations without requiring sufficient space for large on-site generation facilities.

The result is greater flexibility, greater access to renewable energy and a more efficient use of South Africa’s electricity infrastructure.

Importantly, wheeling also allows the country’s best renewable resources to be utilised effectively. Solar and wind projects can be developed where resource quality is strongest, while customers benefit regardless of their location.

The next chapter: SAWEM and electricity trading

One of the most compelling observations in the Engineering News article is that wheeling is helping pave the way for the South African Wholesale Electricity Market (SAWEM).

While South Africa’s electricity market reforms continue to evolve, the direction of travel is clear. The future market will involve greater competition, increased market participation and more sophisticated energy trading mechanisms. This transition mirrors developments seen in mature electricity markets globally, where generators, traders, storage operators and consumers all play active roles within a competitive framework.

As these markets develop, the value of flexibility increases.

Electricity will increasingly be bought, sold, traded and managed through a range of contractual arrangements. Energy traders will play a growing role in matching supply with demand. Customers will have access to a wider range of procurement options. Renewable energy generators will gain new routes to market.

Energy wheeling sits at the centre of this evolution because it provides the infrastructure that allows these transactions to occur.

The role of BESS in a flexible electricity market

As renewable energy penetration increases, Battery Energy Storage Systems (BESS) will become increasingly important in supporting wheeling and electricity market development. Historically, electricity systems were designed around dispatchable generation that could be switched on when needed. Renewable energy introduces variability, making flexibility a valuable asset.

BESS provides that flexibility. By storing energy during periods of excess generation and discharging it during periods of high demand, battery storage can help balance supply and demand while improving grid utilisation.

For customers purchasing wheeled energy, BESS can support more consistent energy delivery and greater alignment between generation profiles and consumption requirements. More broadly, battery storage will become an essential component of future electricity markets, providing balancing services, enhancing system resilience and supporting the integration of larger volumes of renewable energy.

Why businesses should pay attention

For many businesses, discussions around market reform may seem distant from day-to-day operations. However, the implications are significant.

Energy procurement is becoming more strategic. Long-term Power Purchase Agreements combined with energy wheeling offer a practical pathway to achieve these objectives. They provide access to renewable energy at scale while supporting environmental commitments and reducing exposure to future energy market volatility.

The businesses that understand and adapt to these changing market dynamics will be best positioned to benefit from the opportunities they create.

SOLA’s view: wheeling is no longer a future concept

At SOLA, we believe energy wheeling has moved beyond being a niche market mechanism. It is now a critical component of South Africa’s energy future.

The combination of utility-scale renewable generation, energy wheeling, battery storage and evolving electricity markets is creating new opportunities for businesses to access clean, reliable and competitively priced power.

The energy transition is not only about building renewable energy projects. It is about building the market structures that enable those projects to deliver value.

If your business is looking to secure renewable electricity through a Power Purchase Agreement, explore wheeling opportunities or understand how market changes could affect your energy strategy, visit SOLA’s Buy Energy page to learn more about our solutions.

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