Eskom Virtual Wheeling

Unlocking additional BESS revenue through peer-to-peer energy trading

R 7.94M

Annual VW Revenue

R 126.5M

10-Year VW Total

24.3 MWh

Daily Excess Capacity

3 Years

Debt Settlement Time

What is Virtual Wheeling?

Virtual Wheeling enables the municipality to sell excess stored BESS capacity back to Eskom through a peer-to-peer energy trading mechanism. This creates a fourth revenue stream beyond PV savings, BESS arbitrage, and demand reduction.

Charge Off-Peak

BESS charges at R 1.08/kWh during off-peak hours (22:00-06:00)

Sell to Eskom

Excess capacity discharged at R 1.65/kWh (standard) or R 2.50/kWh (peak)

Net Gain

R 0.51/kWh net profit after 90% round-trip efficiency

Revenue Calculation

Virtual Wheeling mathematical framework

R_VW = (P_VW - P_OP) × η_BESS × E_excess × 365

P_VW = Virtual Wheeling selling price (R1.65-R2.50/kWh)

P_OP = Off-peak charging cost (R1.08/kWh)

η_BESS = Round-trip efficiency (90%)

E_excess = Daily excess capacity (24.3 MWh)

Standard Rate

R_VW = (R1.65 - R1.08) × 0.90 × 24.3 × 365

R_VW = R0.57 × 0.90 × 8,869.5 MWh

R_VW = R 4.55M/year

Peak Rate

R_VW = (R2.50 - R1.08) × 0.90 × 24.3 × 365

R_VW = R1.42 × 0.90 × 8,869.5 MWh

R_VW = R 11.33M/year

Blended (50/50)

R_VW = 0.5 × R4.55M + 0.5 × R11.33M

R_VW = R 7.94M/year

BESS Capacity & Excess Availability

80% internal arbitrage, 20% available for Virtual Wheeling

Period	BESS Capacity	Internal Use (80%)	Excess for VW (20%)
Q1 2026	4 MWh	3.2 MWh	0.8 MWh
Q2 2026	63 MWh	50.4 MWh	12.6 MWh
Q3 2026	121.94 MWh	97.6 MWh	24.3 MWh

Revenue Application Hierarchy

Strategic allocation: Debt Settlement → Cost Offset → Municipal Income

Phase 1Years 1-3

Historical Debt Settlement

Virtual Wheeling credits applied directly to Eskom account to settle outstanding debt.

Estimated Debt: R 24M

Settlement: R7.94M/year × 3 years

Phase 2Years 4+

Off-Peak Cost Offset

Revenue offsets BESS charging costs, increasing effective arbitrage margin.

Annual Charge Cost: R 38.48M

VW Offset: R7.94M (20.6%)

Phase 3Years 4+

Municipal Income

Excess revenue becomes pure municipal income for service delivery.

Enhanced Arbitrage: R 72.07M/yr

(Base R64.13M + VW R7.94M)

10-Year Virtual Wheeling Revenue Projection

Escalating at 10% annually with Eskom tariffs

Year	VW Rate (Blended)	Annual Revenue	Cumulative
2026	R 2.08/kWh	R 7.94M	R 7.94M
2027	R 2.28/kWh	R 8.73M	R 16.67M
2028	R 2.51/kWh	R 9.61M	R 26.28M
2029	R 2.76/kWh	R 10.57M	R 36.85M
2030	R 3.04/kWh	R 11.62M	R 48.47M
2031	R 3.34/kWh	R 12.79M	R 61.26M
2032	R 3.68/kWh	R 14.07M	R 75.33M
2033	R 4.05/kWh	R 15.47M	R 90.80M
2034	R 4.45/kWh	R 17.02M	R 107.82M
2035	R 4.90/kWh	R 18.72M	R 126.54M
10-Year Total VW Revenue		-	R 126.54M

The Fourth Revenue Stream

Virtual Wheeling transforms BESS from a "cost-saving device" into a revenue-generating asset.

PV Profit

R 86.92M

BESS Arbitrage

R 64.13M

Demand Reduction

R 12.97M

Virtual Wheeling

R 7.94M

Total Enhanced Savings: R 171.96M/year