| Electricity wheeling | Electricity wheeling | | <img alt="" src="https://resource.capetown.gov.za/cityassets/PublishingImages/Electricity%20and%20energy%20education%20resources%20Header%20Image.jpg" style="BORDER:0px solid;" /> | <div class="ExternalClass21B5F3437AD6464BBC6A3C65938061D6"><p>Energy use is changing rapidly, but the shift to renewable sources needs to happen faster to combat the effects of high carbon emissions and climate change. We are promoting the shift to renewable energy along with projects aimed at ensuring energy security for our customers and a cleaner, more sustainable future for all Capetonians.<br></p></div> | <span>
<h2 class="sectHeading">Electricity wheeling in Cape Town<br></h2>
<h4>What is electricity wheeling?<br></h4>
<p>Wheeling refers to the financial transactions representing the transportation of third party electrical energy (kWh) over the municipal/Eskom distribution network. It allows a third party supplier to sell this electrical energy to a customer at their point of supply. The sale is governed by a bilateral power purchase agreement (PPA) which exists within a market environment, as opposed to a regulated environment, as the price of the energy is set between the parties and not by the City/Eskom or the National Energy Regulator of South Africa (NERSA).<br></p>
<h4>The role of wheeling in Cape Town’s energy future</h4>
<p>It is crucial that the private sector plays a role in addressing the future electricity needs of the country. This will reduce the funding burden on Government, relieve the borrowing requirements of Eskom and introduce generation technologies that Eskom may not consider part of its core function which may play a vital role in the future electricity supply options, in particular off-grid, distributed generation, co-generation and small-scale renewable projects.<br></p>
<p>The introduction of electricity wheeling has multiple benefits as it allows our customers to procure electricity independently from the City, make use of existing infrastructure and reduce their carbon footprint. For the City, it presents an opportunity to become less reliant on Eskom and create a new service model through renting our ‘wires’ infrastructure. <br></p>
<h2 class="sectHeading">Our programmes and projects</h2>
<h4>The City’s approach to electricity wheeling<br></h4>
<p>Our
<a href="https://resource.capetown.gov.za/documentcentre/Documents/Bylaws%20and%20policies/Electricity%20Supply%20By-law.pdf" target="_blank">City of Cape Town Electricity Supply By-law, 2010</a> allows for the retail wheeling of electricity through our network by a licensed third party electricity supplier to customers within the City supply area. Wheeling will take place on 11kV and higher lines only.<br></p>
<p>We envision that a future licensed third party electricity supplier would be part of an electricity retail market, which would allow trading of electricity at prices set by either a competitive bidding process or by means of bilateral power purchase agreements (PPAs). Wheeling of electricity by traders using PPAs is a precursor to establishing such an electricity retail market. Until such time as a single electricity retail market supplier is formalised, each trader will be considered as and allowed wheeling rights associated with an independent electricity supplier.<br></p>
<p>We have developed a set of
<a href="https://resource.capetown.gov.za/documentcentre/Documents/Procedures%2c%20guidelines%20and%20regulations/Wheeling_Implementation_and_Rules.pdf" target="_blank">wheeling rules</a> to allow this market environment to function alongside the regulated environment.</p>
<h4>Wheeling pilot research project</h4>
<p>In order to test the wheeling model, a pilot research project has been established, which will include a limited number of third party participants to investigate, test and finalise the wheeling facility. </p>
<p>The pilot will take place over a minimum of one year, and will end with the full implementation of our wheeling facility. More details on the research pilot will be shared once they become available.<br></p>
<p>
<a href="https://resource.capetown.gov.za/documentcentre/Documents/City%20research%20reports%20and%20review/Electricity_Wheeling_Pilot_Research_Project_Council_Report.pdf" target="_blank">View the report to Council</a>.
<br> </p>
<h2 class="sectHeading">Contact us<br></h2>
<p>For more information, please contact
<a href="mailto:hoosain.essop@capetown.gov.za" target="_blank">hoosain.essop@capetown.gov.za</a><br></p></span> | | GP0|#3703a3a7-445e-4c67-a434-bab28b7fcfa3;L0|#03703a3a7-445e-4c67-a434-bab28b7fcfa3|Electricity wheeling;GTSet|#ef3a64a2-d764-44bc-9d69-3a63d3fadea1;GPP|#b3955b01-8f2f-4856-bfec-be7c68d3bbe1;GPP|#d6c1debf-2fe6-4caf-8748-a5126af00c53;GPP|#e88ff549-973f-4e3c-a46c-cfbe61bd6a24 | | | | | | | | | | | | | | | | Find out about electricity wheeling in Cape Town. | 0 |
