Vodacom has fully operationalised its virtual wheeling project, marking a step forward in the company’s energy transformation journey.
Virtual wheeling of electricity is a mechanism that allows electricity generated in one location, often from renewable sources like solar or wind, to be credited to a customer at a different location without requiring a direct physical connection between the two points.
Instead of physically transmitting the electrons from the generator to the consumer, the energy is fed into the national grid, and tracking and settlement systems ensure the customer receives the financial and environmental benefits of that power.
This approach makes it possible for businesses and municipalities to procure clean energy even if their operations are far from renewable generation sites, while also supporting grid stability and accelerating the transition to sustainable energy.
In a statement, Vodacom says it has delivered on a power purchase agreement with independent power producer (IPP) – SOLA Group – achieving a breakthrough in procuring renewable electricity for commercial operations.
According to the mobile operator, this milestone was ultimately achieved by leveraging an agnostic platform developed by Vodacom subsidiary Mezzanine and renewable energy from SOLA’s solar power plant in Virginia, Free State province.
Connecting for a better future
“Executing this innovation is an immensely proud moment for Vodacom South Africa, and highly significant for the country’s future where energy is concerned,” says Sitho Mdlalose, chief executive officer of Vodacom South Africa.
“Virtual wheeling is a game-changer for companies like ours with distributed operations, removing long-standing barriers to access renewable energy. More importantly, this achievement demonstrates our purpose to connect for a better future – one where we protect the planet, accelerate the adoption of renewable energy and contribute to the stability of the national grid.”
Vodacom notes that by opening the door for both public and private sector participation, the virtual wheeling solution offers a replicable roadmap for other businesses to follow, delivering cost savings, reducing greenhouse gas (GHG) emissions, contributing to grid stability and creating jobs in the energy sector.
It notes that the renewable energy added to the grid contributes to the prevention of load-shedding, allowing consumers to benefit from a more stable supply and mitigating the impact of climate change.
Virtual wheeling is key to Vodacom Group’s ambition of achieving net-zero GHG emissions by 2035, it says.
“Virtual wheeling marks a pivotal moment in South Africa’s energy transition, and we are proud to be the independent power producer behind Vodacom’s first agreement of this kind,” says Simon Haw, founder and chairman of SOLA Group.
“By enabling large, distributed businesses to access our renewable energy at scale and at lower cost, this innovation not only decarbonises operations but also accelerates the shift to a cleaner, more resilient energy system. Our partnership with Vodacom on this milestone underscores the power of collaboration in unlocking the full potential of renewable energy for South Africa’s economy and its people.”
In August 2023, Vodacom initially partnered with Eskom to develop the virtual wheeling mechanism that overcomes the limitations of traditional wheeling.
Subsequently, it explains, Mezzanine created the first platform that enabled virtual wheeling and assessed it through a successful pilot phase.
National grid integration
"This solution, now ready for seamless adoption by other energy users, aggregates energy consumption across multiple consumption points through smart metering,” it adds.
Vodacom explains that the energy consumption data is then reconciled with the energy generated from an IPP in the virtual wheeling platform to enable companies with complex, distributed, operational footprints to access renewable energy on a scale.
It points out that this innovation also allows additional renewable capacity to be integrated into the national grid without affecting Eskom’s balance sheet.
Traditional wheeling arrangements typically involve a one-to-one relationship between an IPP and an off-taker using the national grid to transport energy.
While this is common practice globally, Vodacom says these models have limitations for companies with a distributed network of operations.
For Vodacom South Africa, which operates over 15 000 low-voltage sites across 168 municipalities, these geographic and infrastructure complexities had previously prevented access to large-scale renewable energy from IPPs, it concludes.
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