| 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>The Energy industry 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 that is cleaner at more affordable prices for a 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 all parties, including the private sector plays a role in addressing the future electricity needs of the country. This will reduce the funding burden on Government and relieve the borrowing requirements of Eskom. It will therefore 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, decentralised generation, co-generation and small-scale renewable projects. </p>
<p>The introduction of electricity wheeling has multiple benefits as it allows our customers to procure electricity at unregulated prices from third parties, 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.
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<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>Bi-lateral Wheeling</h4>
<p>As of 1 March 2025, the City is introducing one-to-one wheeling across the City's electricity infrastructure at medium and high voltage levels. This involves the wheeling of electricity from one generator to one off-taker, via the City’s network, subject to the following criteria:</p>
<ul><li>Customers must be at a medium or high voltage connection level i.e. 11 kV to 132 kV</li><li>Customers must be on a "Time of Use" electricity tariff structure </li><li>Generators must be at a medium or high voltage connection level i.e. 11 kV to 132 kV</li><li>Generators may be embedded or outside the City's network </li><li>Customers to whom energy is wheeled must enter into suitable supplemental Electricity Wheeling and Use of System contractual arrangement with the City</li><li>The Wheeling Customers must pay the applicable Wheeling use of System Charges as set out in the City's Electricity Tariff Policy, as amended annually</li></ul>
<h4>Wheeling pilot research project</h4>
<p>After the successful completion of phase one of the wheeling pilot study and the introduction of bi-lateral wheeling, the City is continuing with phase two to test "Pool" wheeling i.e. one-to-many, many-to-one & many-to-many. This will continue for another year, and details on the outcomes of the pilot will be shared once they become available. </p>
<p>Phase two will continue for another year with the current wheeling pilot participants and the City is aiming to conclude this part of the pilot by April 2026, where after the intention is to open pool-wheeling to market
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<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>.
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<h2 class="sectHeading">Contact us<br></h2>
<p>For more information, please contact
<a href="mailto:electricity.retail@capetown.gov.za" target="_blank">electricity.retail@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 |
