Commercial power producers to start wheeling electricity through the grid in pilot project for Cape Town

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The plan will see 15 commercial electricity suppliers sell electricity through the grid to 40 customers from July.

The plan will see 15 commercial electricity suppliers sell electricity through the grid to 40 customers from JulyThe wheeling pilot project will allow third-party producers to use existing grid infrastructure to distribute electricity. Stock photo.Fifteen commercial electricity suppliers will start wheeling electricity through Cape Town’s grid in July as part of a pilot project allowing third parties to sell electricity to address the country’s energy crisis.

The plan will see these suppliers sell electricity through the local grid infrastructure to 40 customers and is expected to be ramped up towards the end of the year. “Wheeling refers to the financial transactions representing the transportation of third- party electrical energy 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,” according to the city of Cape Town.

“The sale is governed by a bilateral power purchase agreement 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 .”

 

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