Wheeling – Offsite solar to replace your utility power with cheaper, greener power.
Understanding Electricity Wheeling
Electricity wheeling involves electricity moving from one entity through another’s power grid to a third party. Here’s how it breaks down:
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Generator: This entity produces electricity, whether it’s from a power plant, renewable energy facility, or a private solar farm.
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Transmission/Distribution Network: Utilities or grid operators manage this. They control the infrastructure, such as wires and transformers, for electricity transport.
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End User: This might be an industrial facility, commercial building, or residential area that wants to buy electricity from a generator other than its local utility.
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Wheeling: Instead of purchasing directly from the local utility, the end user buys electricity from another generator. The local utility or grid operator then moves this electricity through their network, often charging a fee for this service, known as a wheeling charge.
Key Points of Electricity Wheeling:
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Open Access: The transmission network must allow third-party electricity, which regulatory bodies often oversee to ensure fair access and pricing.
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Benefits:
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Cost Efficiency: Generators might offer better rates than utilities.
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Environmental Preferences: Users can select electricity sources aligning with their environmental goals, like solar or wind power.
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Energy Independence: Large consumers gain flexibility in their energy sourcing.
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Challenges:
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Regulation and Tariffs: Determining charges can be complex and requires regulation.
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Infrastructure Limitations: Some grids may need upgrades for efficient wheeling.
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Reliability and Quality: Ensuring consistent quality can be challenging with multiple suppliers.
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Market Context: Wheeling thrives in deregulated markets where competition among energy providers is encouraged.
Visit Eskom’s website to learn more about Wheeling
If your electrical bill exceeds R500 000 per month and you’re on the Eskom Utility network (i.e., not the COCT), then you qualify for wheeling and could save up to 55% on your utility bill.
Contact us for an in-person meeting to learn how your company can benefit from wheeling.