Understand the agreements and data needed to wheel energy
Generators and traders carry much of the technical and regulatory weight in a wheeling transaction. Here is the path from connection route to a finalised commercial arrangement.
Five steps to wheeling energy
- 1
Confirm your grid connection route
Determine whether the project connects to Eskom, a municipal network, transmission, distribution, medium voltage or high voltage infrastructure.
- 2
Secure connection approval
Apply for grid connection and budget quotes through the relevant network service provider. Eskom requires a generator to apply for grid connection, pay for a cost estimate letter, and then, if proceeding, apply and pay for a budget quote and connection charges.
- 3
Confirm NERSA status
Confirm whether the project requires a NERSA generation licence or registration, and whether any trading activity requires a separate trading licence. Some wheeling generators fall under activities exempt from licensing but requiring registration.
- 4
Prepare metering and reporting
Install compliant meters and ensure meter data can be validated, reported and reconciled with the off-taker's consumption, in line with the Distribution Metering Code.
- 5
Finalise commercial and operational arrangements
Conclude the PPA, connection agreement, use-of-system agreement, wheeling agreement and operational reporting arrangements.
Traders need a licence
Where an entity is buying and selling electricity as a trader, a NERSA-approved trading licence is required. Import and export trading also requires the appropriate NERSA-approved import or export trading licence. Confirm your licensing and registration position with NERSA before committing to a transaction structure.
Get the agreements and data right from the start
The PPA is rarely the hard part. Compliant metering, validated data and reconciliation with the off-taker are. Work through a readiness check, or talk to a team that builds that operational layer.