Vodacom has become the first company to fully operationalise virtual wheeling. The achievement delivers on a power purchase agreement (PPA) with leading independent power producer SOLA Group and provides a replicable blueprint for other corporations to procure renewable electricity.
The solution, which leverages an agnostic platform developed by Vodacom subsidiary Mezzanine and renewable energy from SOLA’s solar power plant in the Free State, overcomes the historic barriers that have prevented companies with widespread operations from accessing clean energy.
“Executing this innovation is an immensely proud moment for Vodacom South Africa, and highly significant for the country’s future where energy is concerned. 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,” says Sitho Mdlalose, Chief Executive Officer for Vodacom South Africa.
The innovation offers a clear path for both public and private sector entities to achieve cost savings, reduce greenhouse gas emissions, and contribute to grid stability by adding more renewable capacity without affecting Eskom’s balance sheet.
“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. 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’’ says Simon Haw, Founder & Chairman SOLA Group.
The project began with an August 2023 partnership between Vodacom and Eskom to develop the virtual wheeling mechanism. Mezzanine’s resulting platform aggregates energy consumption across multiple points via smart metering. This data is reconciled with energy generated from an IPP, enabling companies with complex, distributed footprints to access renewable energy at scale.
For Vodacom, which operates over 15,000 low-voltage sites across 168 municipalities, traditional one-to-one wheeling arrangements were previously impossible due to these geographic and infrastructure complexities. Virtual wheeling is key to Vodacom Group’s ambition of achieving net-zero emissions by 2035.
