The City of Cape Town’s pooled electricity wheeling programme has facilitated approximately 3.1 GWh of electricity between participating private generators and customers using the municipal electricity network.
The City is reviewing the results of the pilot phases and says it plans to open pooled wheeling to the market later this year if the review proceeds as expected. It is also looking to create capacity for up to 200 MW over the next few years.
Pooled wheeling allows electricity generated by private producers to be supplied to customers through the City’s distribution network. The City continues to operate and maintain the network, manage metering and billing and recover the relevant network and subsidy-related charges.
Unlike conventional bilateral wheeling between a single generator and customer, the pooled model brings together private generators, electricity traders and customers, allowing energy to be allocated across multiple participants.
“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,” says Alderman Xanthea Limberg, the City’s Mayoral Committee Member for Energy.
Preparing for a changing electricity market
According to Limberg, wheeling is part of Cape Town’s preparations for an electricity market with a growing number of generators, traders and customers.
“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.”
The City says it is also preparing for Cape Town’s participation in the South African Wholesale Electricity Market and supporting reforms that would enable metro trading services.
“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,” Limberg says.
Wider energy programme
Pooled wheeling is part of a broader set of electricity initiatives the City is implementing.
Since June 2024, residents and businesses have earned R67 million by selling about 150 GWh of excess solar electricity to the City in exchange for municipal bill credits and cash.
The City also reports that the Steenbras pumped-storage scheme enabled it to mitigate 24% of load-shedding during the extended Eskom generation crisis.
Cape Town has signed its first two power purchase agreements with independent power producers for a combined 70 MW, forming part of a municipal procurement programme targeting up to 200 MW.
The City has also completed its first own-built solar and battery energy storage facility in Atlantis, comprising 7 MW of solar PV and 10 MWh of battery storage. The City also plans further utility-scale renewable-energy projects and refurbishment of existing generating facilities.
A separate large-scale procurement programme will source electricity from energy traders and independent power producers, including waste-to-energy projects.
Source: City of Cape Town. Click here for audio: https://on.soundcloud.com/0MUjuXx6f9KW7d053Q
