Vodacom has broken new ground by becoming the first South African company to fully implement virtual wheeling, a technology that allows businesses with multiple sites to directly access renewable energy from independent power producers (IPPs) through a power purchase agreement (PPA) with SOLA Group, Vodacom is now sourcing clean electricity for its operations in a way that overcomes traditional grid limitations, setting an example for other companies looking to decarbonize and stabilize their energy supply.
“Executing this innovation is a proud moment for Vodacom South Africa and highly significant for the country’s energy future,” says Sitho Mdlalose, CEO of Vodacom South Africa. He further adds that, “Virtual wheeling removes long-standing barriers for companies with distributed operations, allowing easier access to renewable energy, it demonstrates our purpose to connect for a better future, protect the planet, accelerate renewable energy adoption, and contribute to grid stability.”
The virtual wheeling energy solution opens opportunities for both public and private sector participation. Furthermore, it offers a replicable framework for businesses to save costs, reduce greenhouse gas emissions, stabilize the grid, and create jobs in the energy sector while simultaneously mitigating climate change impacts.
Supporting Vodacom’s Net-Zero Ambition
Additionally the energy solution also supports Vodacom Group’s goal of achieving net-zero greenhouse gas emissions by 2035. Unquestionably, the company recently reached its target to source 100% of purchased electricity (Scope 2) from renewable sources across its ISO 50001-certified operations in Africa. Furthermore, Vodacom continues to invest in energy efficiency programmes and innovative renewable energy solutions.
SOLA Group on Collaboration
“Virtual wheeling marks a pivotal moment in South Africa’s energy transition,” says Simon Haw, Founder and Chairman of SOLA Group. By enabling large, distributed businesses to access renewable energy at scale and lower cost, this innovation decarbonizes operations and accelerates the shift to a cleaner, more resilient energy system. Similarly, our partnership with Vodacom demonstrates the power of collaboration to unlock renewable energy potential for South Africa’s economy and its people.”
From Pilot to Full-Scale Adoption
In August 2023, Vodacom partnered with Eskom to develop the virtual wheeling mechanism, overcoming the limitations of traditional wheeling. Mezzanine subsequently built the first platform to enable virtual wheeling and tested it through a successful pilot phase.
Meanwhile, the platform aggregates energy consumption across multiple points using smart metering. Consumption data is reconciled with energy generated from the IPP, which allows companies with complex distributed operations to access renewable energy at scale. It also permits additional renewable capacity to integrate into the national grid without affecting Eskom’s balance sheet.
Why Virtual Wheeling?
Traditional wheeling requires a one-to-one relationship between an IPP and an off taker using the national grid. Although common globally, this approach is limited for businesses with distributed operations.
Vodacom South Africa operates over 15,000 low-voltage sites across 168 municipalities, these geographic and infrastructure complexities prevented the company from accessing large-scale renewable energy from IPPs. virtual wheeling removes these barriers, enabling a scalable, efficient, and sustainable energy solution.
