The first anniversary of Vodacom and State-owned power utility Eskom’s virtual wheeling mechanism is a turning point in moving the solution from pilot design to proven operational execution at scale.

Last year, Vodacom became the first company in South Africa to fully operationalise commercial virtual wheeling at scale.

This followed the signing of the virtual wheeling agreement in 2023 between the parties. Vodacom also entered into a power purchase agreement to procure renewable electricity for its operations from independent power producer (IPP) SOLA’s solar power plant in Virginia, in the Free State.

After two years of technical and regulatory work, the mechanism moved from agreement to commercial operation in September 2025, enabling Vodacom’s electricity consumption across distributed sites to be aggregated.

The virtual wheeling solution was developed to enable South Africa’s private sector to participate in addressing the country’s energy crisis, which, in 2023, was having a significant impact on the economy.

“This first anniversary represents far more than a year of successful monthly refunds. It is proof that our collaborative efforts have resulted in a workable, scalable solution for the country,” says Vodacom CEO Sitho Mdlalose.

While work remains to broaden participation and mature supporting systems, the 12-month period from September 1 to August 31 provides compelling evidence that virtual wheeling is transitioning from theoretical promise to operational reality.

“We had four objectives in mind when we approached Eskom with this solution: one, to remove complexity; two, to use technology to overcome legacy limitations; three, to access renewable energy with a sound business case; and four, to encourage private participation in helping to solve the country’s energy crisis,” he says.

This achievement was also supported by Mezzanine, the majority-owned Vodacom subsidiary that developed the digital platform that aggregates energy consumption data across multiple distributed sites and reconciles it with energy generated by IPPs.

Monthly refunds have been processed since November 2025, demonstrating that the contractual mechanisms and digital infrastructure can reliably support complex, auditable energy transactions in real-world operating conditions.

The implications of this achievement extend beyond Vodacom and Eskom, with the virtual wheeling model providing a replicable blueprint for other large, distributed businesses seeking to access renewable energy without on-site generation.

“By translating a sophisticated market mechanism into an executable business process, virtual wheeling removes technical and operational barriers that have previously constrained private sector participation in South Africa’s energy transition.”

Mdlalose explains that virtual wheeling fundamentally reimagines how organisations with distributed electricity demand across multiple municipalities can access renewable energy from independent power producers.

Unlike traditional wheeling, which establishes a one-to-one relationship between a generator and a buyer, virtual wheeling totals energy consumption across numerous sites and matches it with renewable generation, making it possible for complex, nationwide operations like Vodacom’s to participate meaningfully in the energy transition.

The agreement emerged from Vodacom’s unique operational challenge. With more than 15 000 distributed low-voltage sites spread across 168 licensed municipalities nationwide and direct Eskom supply, the company faced extraordinary complexity in sourcing renewable energy through traditional wheeling structures.