Regulation
Wheeling in the electricity sector refers to the transport of electric power over transmission or distribution lines by an entity that does not own those lines. Essentially, one party generates electricity in one location and uses another utility’s grid to deliver that electricity to a third-party consumer elsewhere, typically for a fee. For example, a private solar farm might wheel power through the regional utility grid to supply an off-site factory under a special agreement. Wheeling arrangements are facilitated by open access regulations and allow energy producers to sell directly to customers across different grid zones. In places like South Africa, wheeling enables private renewable projects to deliver energy to specific corporate users despite physical distance, helping unlock new renewable investments and competition in the power market.