Milestone reached with 3,1 GWh ‘wheeled’ from private generators, City moves into high gear
Cape Town continues to shine with progressive energy interventions. One such programme is electricity wheeling. It gives businesses a new way to buy renewable energy while still using the City’s grid. The pooled wheeling programme has already enabled about 3,1 GWh of electricity to be wheeled between participating private generators and customers using the City’s electricity network. This progressive City programme is ready to shift into high gear as it looks to bring more energy pools, comprised of private generators, traders and customers into the new energy market.
‘As the City’s pooled wheeling programme starts to mature, it is looking at creating the capacity for up to 200 MW over the next few years. The City is currently reviewing the achievements of the first pilot phases of the programme with the view to opening pool wheeling to the market approximately in the months ahead if all goes to plan.
‘Our pooled wheeling programme is another example of the innovation and expertise within the Energy Directorate, which is helping to position Cape Town as a leader in South Africa’s evolving electricity sector.
‘The electricity market is changing from one main supplier to a system with many generators, traders and customers. Wheeling helps the City prepare for this change. The tariffs are designed to ensure the City still recovers the costs associated with operating and maintaining the electricity network. Wheeling customers still pay the correct network and subsidy-related charges. At the same time, customers can benefit from cleaner or lower-cost energy.
‘South Africa needs reliable, affordable and cleaner electricity for residents and businesses. Wheeling does this, and Cape Town is once again setting the standard by giving businesses more supply choices, supporting investment that drives economic growth and job creation. In addition, wheeling can also help reduce carbon emissions. At the same time, the City continues to recover the cost of operating and maintaining the network. As a leading metro in South Africa’s energy transition, the City is preparing Cape Town’s participation in the South African Wholesale Electricity Market, supporting metro trading services reforms as well as necessary policy and regulatory shifts that are closely aligned with our Energy Strategy objectives,’ said Mayoral Committee Member for Energy, Alderman Xanthea Limberg.
What is wheeling?
A private generator produces electricity, and the City transports it across its network to the customer. If one uses the example of a roadway, a private generator makes the electricity and a customer buys it, but the power still travels through the City’s ‘road’ or wires. The City continues to run the grid, read the meters, manage billing and keep the network reliable. Customers pay for using these services.
Other Cape Town energy firsts and progressive programmes to bring costs down, cleaner energy:
- Pooled wheeling (comprising private generators, traders, and customers) 3,1 GWh and counting, to which we are currently reviewing the success of the Pool Wheeling Pilot and plan to open it to the market later this year.
- Enabling Capetonians to earn cash for power, with residents and businesses earning R67m from selling 150 GWh of their excess solar power back to the city in exchange for municipal bill credits and cash since June 2024.
- Due to Steenbras storage capabilities and management, the City successfully mitigated 24 % of load-shedding during the extended Eskom generation crisis period – the only city to do so.
- The first two Power Purchase Agreements were signed with Independent Power Producers for a total of 70 MW. Over time, this will bring renewable energy on board at rates below that of Eskom. The municipal procurement programme comprises plans to secure up to 200 MW.
- Completion of the City’s first own-built solar and battery energy storage plant in Atlantis totalling 7 MW PV plus 10 MWh battery storage, alongside plans for further utility-scale own-build renewable projects and refurbishments of existing plants.
- A large-scale energy procurement programme that seeks to buy electricity from Energy Traders and Independent Power Producers, including technologies such as waste-to-energy, further promoting carbon neutrality and a circular economy.
