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Wheeled Energy South Africa — Frequently Asked Questions

Everything you need to know about wheeled energy, PPAs, Eskom charges, and renewable energy procurement for your business.

Wheeled Energy Basics

Wheeled energy is the process of transmitting electricity generated from renewable sources — such as solar or wind — through the national grid (Eskom’s transmission network) to a business at a different location. Instead of generating power on-site, your business receives clean energy from a vetted Independent Power Producer (IPP) via your existing Eskom connection.

An IPP generates renewable electricity and feeds it into the Eskom grid. Eskom then “wheels” this energy to your business via your existing connection at a different location. A Power Purchase Agreement (PPA) governs the commercial terms. Eskom tracks the energy flow through the Wheeling Energy Purchase System (WEPS) and applies a credit to your electricity bill, minus wheeling fees. For a full breakdown, see our Market Review.

An Independent Power Producer (IPP) is a private company that generates electricity from renewable sources such as solar PV, wind, or battery storage (BESS). IPPs sell this energy to businesses (offtakers) under a Power Purchase Agreement. Energy Brokers works exclusively with vetted IPPs, giving you access to over 1,500 MW of credible, ready-to-go projects across South Africa.

Costs & Eskom Charges

Eskom charges two wheeling fees: approximately 3 cents per kWh to the generator (the IPP), and approximately 14 cents per kWh to the offtaker (your business), which is credited back through the WEPS rebate. These fees are standard and are factored into any wheeled energy business case — they should not appear as unexpected additional charges on your bill.

Wheeled energy pricing varies based on the volume of energy required, the contract term length, and the technology used (Wind, Solar PV, or BESS). Pricing is typically structured on a sliding scale — larger volumes and longer terms tend to secure more competitive rates. Energy Brokers negotiates directly with IPPs on your behalf, ensuring you receive the most competitive terms available in the market at no brokerage cost to you.

No. Energy Brokers’ brokerage services are provided at no cost to the offtaker. Our facilitation fees are agreed with vetted IPPs and are already factored into the PPA costs — meaning you receive competitive, de-risked energy deals without any additional brokerage charge impacting your tariff.

Load-Shedding & Energy Security

Wheeled energy provides access to cost-effective renewable energy, but it does not provide an energy security solution for your site. Energy wheeling operates through the Eskom grid — meaning that when load-shedding occurs, your wheeled energy supply is also interrupted. If energy security is a priority, an on-site embedded generation solution (such as solar + battery storage) may be more appropriate. Our team can advise on the best approach for your specific situation.

Yes — for two reasons. First, Eskom’s Wheeling Framework reconciles energy on a Monthly Time of Use basis, meaning a wheeled solar solution can provide additional penetration even if your on-site embedded generation appears to be sized to your full load. Second, wheeled energy gives you access to wind generation — something that is not feasible as an on-site embedded generator — providing renewable energy during periods when your on-site solar PV is not producing.

PPAs & Contracts

A Power Purchase Agreement (PPA) is a long-term commercial contract between an energy buyer (offtaker) and an energy generator (IPP). It sets out the terms under which renewable energy is supplied, including the price per kWh, the contract duration, the technology used (solar, wind, or BESS), and the responsibilities of each party. Energy Brokers negotiates PPA terms on your behalf, ensuring you receive commercially sound, de-risked agreements.

Wheeled energy contracts typically range from 5 to 20 years, depending on the technology, energy volume, and commercial structure agreed between the offtaker and the IPP. Longer terms generally attract more competitive pricing. Energy Brokers works with you to identify the contract structure that best aligns with your operational and financial requirements.

Most PPA structures include provisions for adjustments to offtake volumes, additions or removals of sites, and sourcing alternative buyers if your consumption profile changes significantly. Our operational support service actively monitors your energy consumption and manages these adjustments throughout the contract term. Speak to our team to understand the flexibility options available for your specific deal structure.

ESG & Renewable Energy Certificates

Power Purchase Agreements include the environmental benefit associated with renewable energy through Renewable Energy Certificates (RECs). RECs are issued to your business throughout the duration of the PPA and enable you to make verified claims about your renewable energy usage in ESG reports, sustainability disclosures, and regulatory filings.

Green credits — also referred to as Renewable Energy Certificates (RECs) or I-RECs — are certificates issued for each megawatt-hour (MWh) of renewable energy generated and delivered to your business. Each certificate represents verified proof that clean energy was produced and consumed on your behalf. These credits are included in your PPA and can be used to substantiate your Scope 2 emissions reduction claims and ESG sustainability goals.

Yes. Wheeled renewable energy reduces your Scope 2 emissions — the indirect greenhouse gas emissions associated with purchased electricity. By replacing Eskom-grid electricity (which has a high carbon intensity) with certified renewable energy from wind or solar IPPs, your business can make measurable, verifiable reductions to its Scope 2 footprint. RECs issued through your PPA provide the documentation needed to report these reductions with confidence.