In anticipation of the formal launch of the South African Wholesale Electricity Market (SAWEM) and the Balance Responsible Party (BRP) framework, engineering business and IT enabler for the electricity sector Enerweb has been actively preparing its clients for BRP requirements.

Set to launch in April 2026, SAWEM is being established to replace State-owned power utility Eskom’s single-buyer monopoly model with a multi-buyer, multi-seller system, aiming for cost-efficiency and price transparency.

“A BRP is an entity responsible for ensuring that its contracted positions for generation and load are balanced against actual physical delivery,” says Enerweb CEO Santego Govender.

This includes forecasting accurately, scheduling precisely and managing deviations accordingly.

Introducing BRPs is critical to maintaining system stability and market integrity, and “. . . if a BRP is consistently out of balance – for example, over- or underdelivering against its schedules – it could face imbalance charges and settlement penalties, creating financial and reputational risks”, Govender adds.

Therefore, Enerweb is supporting clients with forecasting tools, system optimisation and risk analytics so that, by the time SAWEM goes live, they are ready to manage their portfolios confidently and minimise exposure to imbalance risk.

The BRP requirement applies across the local power sector, affecting all traders and independent power producers (IPPs) that will participate in the SAWEM.

“From April 2026, all IPPs and traders with contracts above the 10 MW threshold will need to register and perform as BRPs,” and their effectively managing balancing positions will become crucial for sustained success once the SAWEM is operational, he says.

Important Power Implementation

The launch of SAWEM and its related BRP requirements signifies a fundamental transformation in South Africa’s electricity wheeling landscape, says Govender.

Enerweb’s customised electricity trading and wheeling solutions streamline the management of increasingly intricate energy portfolios.

These tools empower traders, IPPs, municipalities and large consumers to efficiently plan, trade and settle electricity flows within a market environment characterised by variable renewable energy and evolving regulatory landscapes.

The company’s flagship energy trading and risk management system offers comprehensive capabilities across the trading life cycle – from long-term purchase planning and short-term scheduling to meter data integration, contract settlements, billing and reporting.

Complemented by advanced optimisation and forecasting features – such as trade optimisation, risk management, data integration and visualisation – these modules ensure efficient and informed decision- making.

The trade optimiser dynamically distributes power among customers and generators using linear optimisation to minimise excess supply and reduce costs while analysing tariffs, rebates and municipal wheeling frameworks.

Meanwhile, the risk manager supports traders in assessing and mitigating portfolio risks through scenario analysis, Monte Carlo simulations and multi-objective resource optimisation encompassing renewables, storage and grid limitations. Monte Carlo simulations help users to estimate the probability of various outcomes in complex, unpredictable processes.

Enerweb’s market forecaster employs machine learning and statistical models to generate highly accurate demand, price and generation forecasts for day-ahead planning and long-term strategy.

The integration of metering and market data is facilitated by the data integrator and visualiser, which has user-friendly dashboards, enabling traders and analysts to interpret and act on complex information in real time.

Strategy Unpacked

Enerweb’s strategy is focused on two key areas.

“First, we are equipping clients with the tools and processes needed to forecast accurately, optimise schedules and manage imbalance risks,” Govender adds.

Secondly, the company is strengthening its in-house capabilities and systems to support the evolving needs of traders in this new environment.

This includes ongoing development in forecasting, settlement modelling and scenario analysis, ensuring that solutions remain closely aligned with regulatory and market changes.

In this way, Enerweb and its clients are prepared for the medium- to long-term opportunities associated with the introduction of the SAWEM.

Further, the company’s trading and wheeling solutions have been adopted by some of the major utilities and electricity traders in the Southern Africa market.

It states that traders consistently highlight that “it is virtually impossible” to manage wheeling/trading portfolios comprising renewable generators on one side and diverse customer contracts on the other without the advanced optimisation, risk management and forecasting capabilities that Enerweb’s tools provide.

According to clients, its solutions have proven “particularly effective” in balancing variable solar and wind generation with customer load obligations, as well as reducing oversupply and cost through precision wheeling allocations.

Clients laud the company’s ability to support compliance with emerging market and municipal wheeling rules while enhancing profitability by aligning portfolio strategies with market opportunities.

“Enerweb’s suite of products has become an indispensable toolkit for navigating the transition to renewables-driven electricity markets, giving traders the confidence to manage risk, optimise value and ensure reliable delivery to their customers,” concludes Govender.