News flash
- South Africa’s state owned energy utility Eskom has launched virtual wheeling as part of a number of wheeling energy trading platforms.
- Portfolio wheeling is set to follow.
- Eskom’s Virtual Wheeling product empowers multiple generators and off-takers, including those on both Eskom and municipal grids, to conduct electricity transactions with greater efficiency.
- The process supports retrospective energy claims and streamlines power purchasing agreements across different networks, offering a flexible and scalable approach to energy procurement.
Virtual wheeling is a financial mechanism that facilitates the sale and delivery of electricity from Independent Power Producers (IPPs) to end-users via an existing transmission or distribution network. This innovative solution allows businesses to access renewable energy without the need for a direct connection to the generator, resulting in cost savings, enhanced energy security, and a reduced carbon footprint.
How does it work?
- Virtual wheeling enables retrospective energy claims (based on power purchase agreement with a generator) across all networks, irrespective of distributor boundaries in line with the Virtual Wheeling Business rules.
- End users/off-takers who have contracted with an entity for wheeled energy (Virtual wheeling) will still be required to settle their utility accounts with Eskom/the Municipality.
- Eskom will refund energy claims for this product at WEPS, Local and Non-Local rates link to tariff book, depending on where the end user sits.
- Claimant will submit a monthly claim to Eskom for wheeled energy to receive their refund.
Link HERE for more information
Author: Bryan Groenendaal
