--- title: "Market Review: Energy Wheeling in South Africa" description: "Independent review of South Africa's wheeled energy market — how wheeling works, grid capacity by province, REIPPP pipeline and pricing outlook." lang: en json-ld: | { "@context": "https://schema.org", "@type": "FAQPage", "inLanguage": "en-ZA", "mainEntity": [ { "@type": "Question", "name": "Does wheeling help me during load-shedding?", "acceptedAnswer": { "@type": "Answer", "text": "Wheeling provides access to cost-effective renewable energy, it does not provide an energy security solution to your site." } }, { "@type": "Question", "name": "What does Eskom charge for wheeling?", "acceptedAnswer": { "@type": "Answer", "text": "Eskom charges a fee to the generator of approximately 3 cents per kWh as well as a fee to the offtaker of approximately 14 cents per kWh, which is accounted in the WEPs rebate. These fees are typically accounted for in a wheeled energy business case and should not be additional charges." } }, { "@type": "Question", "name": "What are the costs of wheeled energy?", "acceptedAnswer": { "@type": "Answer", "text": "Wheeled Energy pricing varies on a sliding scale taking into account the amount of required energy and the term length entered into by the customer as well as the technology used, being Wind, Solar PV or BESS." } }, { "@type": "Question", "name": "Does wheeled energy work if I already have an embedded solar site?", "acceptedAnswer": { "@type": "Answer", "text": "Yes, for two reasons. Namely, due to the way in which Eskom's Wheeling Framework reconciles energy on a Monthly Time of Use Basis, you are able to get additional penetration from a Wheeled Solar solution even if your onsite Embedded Generation has been seemingly sized to your load. Furthermore, Wheeled Energy enables access to Wind generation which is not normally a feasible embedded generator, hence providing you access to renewable energy in periods where your Solar PV on site may not be producing energy." } }, { "@type": "Question", "name": "How do I report on the green attributes received from wheeled energy?", "acceptedAnswer": { "@type": "Answer", "text": "Power Purchase Agreements include the environmental benefit associated with renewable energy by way of Renewable Energy Certificates (RECS). These will be issued to the customer throughout the duration of the power purchase agreement and will enable the customer to make reliable claims with regards to their ESG Goals." } } ] } --- [![Energy Brokers](/assets/energy-brokers-logo-BA7vJ5S5.png)](/) [Home](/) Services [Market Review](/market-review)[Calculator](/wheeled-energy-calculator)[The Group](/the-solink-group)[Resources](/resource-hub)[Careers](/careers)[Contact](/contact) [Wheeling Calculator](https://wheeling-calculator.energy-brokers.co.za/)[Get in touch](/contact) ![](/__l5e/assets-v1/79188c60-f78f-4a08-bfd6-ef9bca60f743/market-review-hero.webp) Market Review # Energy Wheeling in South Africa Energy wheeling gives South African businesses a cost-effective and sustainable way to procure renewable power — by connecting offtakers to Independent Power Producers (IPPs) through the national grid. Independent perspective ## A commercially beneficial, de-risked path to renewable energy Energy wheeling in South Africa provides businesses with a cost-effective and sustainable energy solution. By facilitating partnerships between customers and Independent Power Producers (IPPs), we enable the seamless allocation of renewable energy through the national grid. Our tailored approach ensures a commercially beneficial structure, accelerates and de-risks project timelines, and provides transparent electricity bill reconciliation, delivering significant cost savings compared to traditional energy sources. Definition ## What is Wheeled Energy in South Africa? Wheeled energy is the process of transmitting electricity generated from renewable energy sources, such as solar or wind, through an existing electricity grid to the end-user. Independent Power Producers (IPPs) generate the energy and use the national grid infrastructure to "wheel" it across distances to businesses or consumers who want to purchase green energy. This enables customers to access renewable power without the need to invest in their own generation infrastructure — a cost-effective, scalable, and sustainable energy solution. Mechanism ## How Does Energy Wheeling Work? Wheeling in South Africa allows privately generated electricity — typically from renewable sources like wind or solar — to be delivered to an end-user (the offtaker) through Eskom's transmission network. An Independent Power Producer (IPP) generates electricity at one location and feeds it into the Eskom grid. This power is then "wheeled" to the offtaker, who receives it via their existing Eskom connection at a different location. A Power Purchase Agreement (PPA) governs the commercial terms between the IPP and the offtaker. Eskom facilitates this transaction by tracking the energy flow, applying a credit to the offtaker's electricity bill (excluding network losses) through the Wheeling Energy Purchase System (WEPS), and charging a wheeling fee. This mechanism enables businesses to procure renewable energy remotely while still using Eskom's infrastructure. [See the full wheeling diagram](/how-wheeling-works) Why now? ## Five forces converging on the South African grid 01 ### Investment Required The National Grid requires over R200 billion to develop 14,000 km of new transmission infrastructure. 02 ### REIPPP Growth Incoming Bid Windows 7 and 8 are expected to each deliver 5 GW of new generation capacity. 03 ### Private Pipeline Expands More than 20 GW of energy projects are estimated in the private offtaker pipeline. 04 ### Grid Pressure Mounting Capacity constraints and rising electricity prices are expected from Q1 2027 onwards. 05 ### Funding Delayed Eskom's transmission upgrade funding only becomes substantial after 2030. Grid Capacity — South Africa ## Available capacity for new generation projects An overview of available grid capacity across South Africa, based on the Generation Connection Capacity Assessment (GCCA). Use it as a high-level view of where new generation projects can connect today. - KwaZulu-Natal 5,500 MW - Gauteng 4,680 MW - Limpopo 3,360 MW - Mpumalanga 3,320 MW - North West 1,660 MW - Free State 1,420 MW - Northern Cape 0 MW - Western Cape 0 MW - Eastern Cape 0 MW - Hydra Central 0 MW Source: GCCA 2025 — indicative available transmission capacity per province. Constrained provinces (0 MW) require alternative grid routing or transmission upgrades. Frequently Asked Questions ## About wheeled energy ### Does wheeling help me during load-shedding? ### What does Eskom charge for wheeling? ### What are the costs of wheeled energy? ### Does wheeled energy work if I already have an embedded solar site? ### How do I report on the green attributes received from wheeled energy? Whether you're looking for more information on how wheeling works or need guidance on how it can benefit your business, our team is ready to provide the support you need at [info@energy-brokers.co.za](mailto:info@energy-brokers.co.za). [See all FAQs](/faq) ## Speak to South Africa's Wheeled Energy Specialists [Get in touch](/contact) Newsletter ### Stay ahead of the energy market Get monthly market insights, regulatory updates and wheeling news delivered to your inbox. Name Email Subscribe Energy Brokers Independent South African energy advisory — structuring wheeled energy deals, PPAs and feasibility analysis for commercial and industrial offtakers. 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