New partnership to energise virtual wheeling in South Africa

A new partnership between Mezzanine and Open Access Energy (OAE) is set to electrify virtual wheeling in South Africa.
Image credit: Pexels
Image credit: Pexels

Under the agreement, OAE will market, sell, and operate Mezzanine’s virtual wheeling platform as part of its Energypro platform offering.

The partnership enables corporate energy buyers, independent power producers, and traders to access virtual wheeling infrastructure through a single, integrated experience.

What is wheeling?

Wheeling is the mechanism that allows a renewable energy generator to sell electricity to a buyer located elsewhere on the national grid, using the existing transmission and distribution network as the conduit.

Rather than building direct physical infrastructure between the generator and the buyer, the grid carries the power, and the transaction is settled financially.

Gerjo Hoffman, CEO of Open Access Energy, notes that “South Africa’s energy transition is accelerating, and the infrastructure to support it needs to match that pace.”

He further highlights that “this partnership gives our customers access to proven wheeling technology, backed by the commercial and operational capabilities we have built at OAE.”

Jacques de Vos, CEO of Mezzanine, adds that “Virtual wheeling is an important step towards a more inclusive and competitive energy market.

“Our partnership with OAE is key in expanding market access to the Mezzanine Virtual Wheeling Platform.”

There are two ways to wheel energy in South Africa, and the differences between them matter significantly for buyers.

Traditional wheeling

Traditional wheeling is the established model.

A generator wheels electricity directly to one or more off-takers; the off-taker’s Eskom supply agreement is formally amended to accommodate the arrangement, and all contracts are concluded within an Eskom provincial network boundary.

This model is available to high and medium-voltage Eskom-connected end-users.

It is a well-understood and operationally stable process, but it requires supply agreement amendments before procurement can begin, which can trigger additional deposit requirements and introduce contractual complexity.

It also excludes low-voltage customers and those supplied through municipalities entirely.

Virtual wheeling

Eskom’s virtual wheeling mechanism is a newer product that fundamentally expands who can participate.

Rather than requiring a direct bilateral arrangement between a single generator and a single off-taker, virtual wheeling allows entities to transact on behalf of multiple Eskom or municipally connected customers simultaneously, claiming energy purchased from a generator across an entire portfolio of sites.

Critically, no amendment to an existing Eskom supply agreement is required, no new deposit obligations are triggered, and customers supplied through a municipality can participate on the same basis as those connected directly to Eskom.

This is a meaningful shift.

For the first time, low- and medium-voltage customers, whether Eskom or municipally connected, can access renewable energy procurement at scale, without changing their relationship with their network provider or disrupting their existing supply arrangements.

Virtual wheeling is ideal for buyers with multiple properties, especially if they’re served by different power suppliers (Eskom or municipalities).

It’s also great for people who are committed to reducing carbon emissions or seeking long-term, predictable energy prices.

This method lets them buy renewable energy for all their locations at once (a ‘portfolio’ approach), and the more green energy they integrate across this portfolio, the better the financial benefits become over time.

The complexity lies in the administration.

Wheeling transactions require metering data reconciliation, tariff calculations, network charge management, monthly settlement processing, and regulatory compliance across multiple parties simultaneously.

That is precisely the problem that technology platforms like Mezzanine’s virtual wheeling platform and OAE’s Energypro are built to solve.

From pilot transactions to commercial scale

The agreement positions both companies to serve the growing demand for renewable energy procurement solutions as more corporations seek direct access to clean power.

With South Africa’s regulatory environment increasingly supportive of third-party wheeling, the timing reflects a market that is moving from pilot transactions to commercial scale.

OAE’s Energypro platform currently serves independent power producers, energy traders, and corporate off-takers across South Africa, providing infrastructure for transaction management, billing, reconciliation, and portfolio optimisation.

Mezzanine’s solution is an established technology used to facilitate and manage Eskom virtual wheeling transactions at scale across the South African market.

Together, the two platforms create an end-to-end capability, from transaction origination and PPA structuring through to metering, settlement, and ongoing portfolio management.

This is delivered through a single integrated experience for buyers and sellers alike.


 
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