The City of Cape Town is excited to launch its first electricity wheeling pilot research project. Third party suppliers are encouraged to apply to become part of this pilot project and to submit their application by 17:00 on 30 June 2022. This is one of several initiatives the City has on the go as we position ourselves toward a more energy secure future built on diversification, innovation and sustainability.
‘As part of the pilot, an electricity wheeling facility will be offered to enable the wheeling of electricity to customers with a 11kV connection who want to buy energy from third party suppliers that source the electricity from generators connected to Eskom or City electricity grids. A limited number of third party participants will help to investigate, test and finalise the wheeling facility. This will take place over a minimum of one year, and will end with the full implementation of the City’s wheeling facility.
‘This is a complex process and a first for the City. The detail is very important. As such, time is required to work through the details and any unforeseen issues that may arise over the year-long pilot phase. This is another step towards the future-fit Cape Town that we are building, one where we have a world-class sustainable city, with diversified energy offerings for more secure and reliable energy supply. Much work is under way on our independent power producer as well as our own-generation programmes. In our draft energy budget, we have also set aside R15 million to pay for energy generated by small-scale embedded generators through the feed in tariff of 75,51c/kWh (excluding VAT) and the 25c/kWh incentive offered for small-scale embedded generators. Changing the energy regime takes time, but we are fully committed to doing more to increase energy security to the benefit of Cape Town and its residents,’ said Cape Town Mayor, Geordin Hill-Lewis.
What is wheeling?
Electricity that is owned by a third-party supplier is wheeled from the source of generation (over the Eskom grid if the generator connects to the Eskom grid) and then over the City’s grid to the end consumer (an existing or new City electricity customer). The customer pays the third-party supplier for the electricity wheeled and the City (and Eskom if the generator is connected to the Eskom grid) charges for the transport of the electricity over the grid.
‘The City has developed a standard set of rules to give effect to the pilot. There is no room to negotiate wheeling tariffs or rules. The wheeling tariff has been designed to be revenue neutral to the City. Systems also need to be developed to manage the metering data and financial calculations in terms of these rules. The City’s billing processes are also being changed to make wheeling possible. These rules and the systems need to be tested to ensure that they are working correctly before the City can offer wheeling. The City intends to do this testing together via the pilot. The third parties will need to have generators with a capacity of more than 1 MW that can connect to the City’s grid.
‘The City is looking forward to collaborating with private partners and to make Cape Town stronger by increasing energy security, adding in more sustainable energy sources and positioning Cape Town as a leader in energy solutions for a growing city,’ said the City’s Mayoral Committee Member for Energy, Councillor Beverley van Reenen.
How to apply
The Wheeling Pilot Research Application form can be found on www.capetown.gov.za/electricitywheeling. Please submit this form with the following information: Details of City 11kV customers that will purchase the wheeled energy The source of the wheeled energy (details of generation) Any NERSA licences currently held by the applicant and other parties Previous wheeling or related experienceApplicant company details, past three years financial statements, and current SARS tax clearance
The pilot will be conducted in terms of the City wheeling rules. The City reserves the right to select and appoint participants in the pilot research project in its sole discretion based on information provided by the applicant. Selected applicants will be required to enter an agreement with the City to participate in the pilot research. project. Full terms and conditions are available in the application form.
For more information visit: www.capetown.gov.za/electricitywheeling