Virtual Wheeling: Opening doors to green energy

Amid years of crippling power shortages, a new way for businesses to tap into renewable energy is gaining traction in South Africa. Virtual wheeling – a system that enables companies to “receive” off-site solar or wind power through the existing grid – is opening doors to cleaner, more flexible energy solutions without the need for rooftop panels or complex agreements.

Unlike traditional wheeling, which requires a direct line from generator to user, virtual wheeling relies on smart billing and metering to match a business’s electricity use with clean energy credits from remote sites. This bypasses the need to change Electricity Supply Agreements, making renewable energy accessible to a much wider range of businesses.

It’s a game-changer. Traditionally, only large energy users with the appetite for long-term, complex Power Purchase Agreements could participate in wheeling. Now, virtual wheeling removes the barriers – enabling smaller businesses to tap into green energy, streamline admin and scale up more easily. The model also shifts from one-to-one energy deals to a dynamic many-to-many marketplace, where multiple generators can serve multiple off-takers – whether they are connected to local power utility Eskom or local municipalities.

A major milestone came in August 2023 when the Vodacom Group, through its subsidiary Mezzanine, signed South Africa’s first virtual wheeling agreement with Eskom. The deal allows Vodacom to source renewable energy from independent power producers (IPPs) while continuing to use Eskom’s infrastructure. Mezzanine, a South African tech firm focused on digital solutions in emerging markets, enabled the digital backbone for the project. “Virtual wheeling is not just a technical innovation – it’s a platform for transforming energy markets. With data, automation and trusted integration, we are unlocking scale, transparency and real-time visibility,” says Mezzanine CEO Jacques de Vos.

He says the pilot proved virtual wheeling can deliver clean energy to low-voltage sites in a transparent, cost-effective way. The benefits? Lower costs, faster adoption of renewables, less red tape and a scalable framework for businesses looking to go green. This is just the beginning.

Why virtual wheeling?

The Virtual Wheeling Platform (VWP) itself was rolled out to the rest of the market towards the end of 2024, attracting larger investments in the country’s renewable energy market and enabling companies to reach their net zero carbon-emissions targets. South Africa turned to virtual wheeling as part of its response to the ongoing energy crisis, aimed at improving energy security and accelerating the shift to renewables.

Eskom says the model allows businesses to access green energy without needing to invest in their own renewable plants, a key advantage given current grid constraints. Virtual wheeling is now available as a market-ready product. “We are open to supporting entities in exploring their options and building on the virtual wheeling model to expand their offerings. The initial version is just the starting point and the product is evolving as market demand grows,” says Eskom.

As virtual wheeling gains momentum, South Africa’s energy challenges are making it an increasingly attractive solution, says Andre Nepgen, Head of Discovery Green. Many businesses, particularly those connected via municipalities, have limited access to renewable energy. Virtual wheeling helps overcome this by eliminating the need for a direct connection to generation sites.

With load shedding and supply instability still persistent, the model also drives investment in new renewable capacity-broadening market access for energy suppliers and reduces the pressure on Eskom to build new generation infrastructure. Unlike traditional wheeling, which can involve complex regulatory hurdles and direct billing changes, virtual wheeling simplifies the process. It bypasses the need for administrative adjustments to existing utility accounts and decouples wheeling from utility billing entirely.

The shift to clean energy

South Africa’s energy crisis has pushed many businesses to adopt traditional energy wheeling, with a growing number now exploring virtual wheeling. Among them is Growthpoint Properties, the country’s largest JSE-listed Real Estate Investment Trust (REIT), which has opted for traditional wheeling while Eskom’s virtual platform continues to develop. Through a partnership with Etana Energy, Growthpoint is already wheeling renewable power to its properties, allowing for the immediate deployment of new green energy and delivery of certified renewable electricity under current regulations.

“We are fully committed to achieving carbon neutrality. If virtual wheeling becomes a viable and attractive option for us in future, we will certainly consider it. But we are acting now, prioritising green electricity and delivering measurable results for our properties and tenants,” says Head of Corporate Advisory at Growthpoint Properties, Werner van Antwerpen.

From September 2025, Growthpoint will launch its e-co₂ (electricity minus CO₂) green energy scheme across 10 Sandton office buildings. A first-of-its-kind initiative in South Africa’s commercial property sector, e-co₂ will supply clean energy from hydroelectric, wind and solar sources via the national grid using wheeling.

Van Antwerpen says the e-co₂ scheme has benefits that include:
Reliable renewable supply: While power flows through the grid and does not stop load shedding directly, private generation helps ease long-term supply pressure.

Certified green energy: At least 70% of each building’s power will come from renewables, verified via blockchain-based Renewable Energy Certificates (RECs) to support ESG reporting and cut Scope 2 emissions.

Tenant savings: Tenants receive a green credit, with capped annual increases on renewable costs lower than typical Eskom or municipal hikes offering growing savings, especially on long leases.
The rollout is a key milestone in Growthpoint’s path to carbon neutrality by 2050 and has already earned recognition from Green Building Council South Africa for its innovative approach.

GREATER access to green power

Nepgen says Discovery Green plans to use virtual wheeling to expand access to renewable energy for businesses across South Africa, regardless of size, sector or location. Discovery Green has grown its renewable energy offering through its wheeling platform, already enabling major clients like Implats, Fortress Real Estate Investments and Balwin Properties to secure large-scale, price-certain clean energy. “The platform will use the virtual wheeling framework to serve both Eskom- and municipality-connected clients, without requiring direct links to generation sites,” says Nepgen.

To ensure a stable and diversified supply, Discovery Green is sourcing energy from a mix of solar and wind projects in various regions. It then applies Discovery’s actuarial and technical expertise to match supply with clients’ energy consumption patterns, offering long-term supply certainty.

In May, Discovery Green, in partnership with Sasol, launched Ampli Energy, a first-of-its-kind, month-to-month renewable energy product offering businesses immediate, scalable access to green power via the national grid. Enabled through energy wheeling, it aims to reach the businesses most in need of affordable clean energy. Ampli Energy is designed to unlock access for SMMEs and mid-sized corporates traditionally excluded from the energy market. Although energy delivery is set to begin within weeks, early uptake has been strong, with high volumes and a diverse mix of businesses already signed on, says Nepgen.

He says Discovery Green’s first wind farm is also on track to reach commercial operation by Q2 2027. “We are excited about the economic potential of expanding renewable access through virtual wheeling, allowing corporates, SMMEs and NGOs to share in the financial and environmental benefits of decarbonising their operations.” The full impact of virtual wheeling on Discovery Green’s sustainability goals is still unfolding but early signs point to a significant shift in how South African businesses engage with clean energy.

SOLA Group, a vertically integrated renewable energy developer and IPP, is actively advancing virtual wheeling through both its own generation assets and its multi-buyer trading platform, Project Springbok. “Virtual wheeling builds on our utility-scale model that traditionally serves large Eskom-connected clients like Amazon and Tronox. What’s new is our ability to reach smaller or more geographically dispersed customers by simplifying access and reducing transaction complexity,” says the company.

Project Springbok, South Africa’s first fully financed, multi-buyer solar wheeling initiative, set in the Free State, is set to go live soon. Through it, SOLA has signed short- and medium-term PPAs with several corporate clients, combining traditional and virtual wheeling. This has already delivered notable cost and carbon savings, without the need for on-site installations.

“SOLA is proud to be pioneering both the infrastructure and commercial models behind virtual wheeling. With over 600MW in financed wheeling assets, we are well-placed to help South African businesses cut costs and emissions. Virtual wheeling is not just a workaround, it’s a step towards a more flexible, open and resilient energy market.”

Data transparency

Eskom says significant considerations are taken to ensure data transparency while preventing misuse or market distortion in virtual wheeling. “Our contracts prioritise confidentiality and data protection, with strict system specifications in place. Access to our systems will be licensed and limited, in line with contractual agreements,” says the power utility. According to SOLA, Discovery Green and Mezzanine, three key elements are essential for the success of virtual wheeling:
Data transparency ensures all parties, generators, utilities and consumers have access to accurate, timely information on energy generation and use. De Vos says this is crucial for proper settlement and regulatory compliance.

Accurate metering is vital, particularly Time-of-Use (TOU)-compliant smart meters that track consumption across tariff periods. Nepgen stresses that without this, refund calculations and monthly reconciliations can fail.

Utility cooperation, especially between Eskom, municipalities and IPPs is critical for smooth operation and wider participation. “Scaling the model depends on Eskom-certified data platforms, SANS 474-compliant meters and municipal partners in good standing with Eskom to ensure eligibility and reliable integration,” says SOLA.