Vodacom, Eskom wheeling solution agreement great example of a public-private partnership

Dejan Kastelic, the Chief Technology Officer of Vodacom, has praised the collaborative effort between Vodacom and Eskom in the development of a virtual wheeling solution agreement. He believes that this partnership is a positive example of how the private and public sectors can work together to address the energy crisis in South Africa.

The agreement, officially signed recently, is not just a testament to effective partnership but also a strategic leap towards tackling South Africa's ongoing energy woes. 

According to an official statement, the pact is poised to expedite endeavours to resolve the energy crisis, while also propelling Vodacom into the next phase of this groundbreaking solution. Under the terms mirrored in its Eskom agreement, Vodacom plans to extend the benefits of the virtual wheeling solution to Independent Power Producers (IPPs), fostering an inclusive approach.

At the core of this partnership lies an innovative solution co-developed by Vodacom and Eskom. This pioneering endeavour not only exemplifies the potential of public-private collaboration but also stands as a beacon of sustainability. By harnessing the momentum of this initiative, Vodacom moves steadfastly towards its goal of sourcing a remarkable 100 per cent of its electricity demand from renewable energy sources by the year 2025.

Commending the initiative in a post made on his official LinkedIn platform, Mr. Kastelic noted that “by incorporating new technologies into legacy solutions, we have found a way to mitigate the impact of load shedding without reinventing the wheel.”

“The addition of smart metering technology to the traditional power wheeling model has simplified a previously limited approach, benefitting the entire supply chain. Not only does this solution have the potential to address business and environmental concerns, but the improved accessibility made possible by IoT technology will accelerate efforts to solve the country’s power crisis, helping us take South Africa ” he said.

The energy crisis in South Africa has been devastating for many businesses. Vodacom South Africa spent more than R4 billion on backup power solutions and R300 million in the past financial year alone on operational costs such as diesel for generators. Not only is this a massive financial burden, it also poses a significant challenge for the company to achieve its broader environmental ambitions.

Traditional wheeling typically involves a one-to-one relationship between an IPP and a buyer using the national grid to convey their energy. While the concept of traditional wheeling is a fairly common practice globally, it has certain limitations for companies with complex operating environments. For example, Vodacom South Africa’s operating situation is unique due to the complexities associated with having over 15,000 distributed low-voltage sites across the country that are linked to 168 municipalities. Up until this point, this complexity has prevented Vodacom from accessing large-scale renewable energy from IPPs. The virtual wheeling solution addresses these challenges.

By:  Nana Appiah Acquaye