Sustainable Energy for Greenhouses a Possibility?

South Africa has been plagued by power supply issues for many years. Mostly because of the significant reliance on Eskom, which is struggling to meet electricity demands. Every year the electricity tariffs increase by 15% and continue to squeeze profits of businesses, including farmers.

According to the World Economic Forum (WEF) Energy Transition Index 2021, the rising electricity price is one of the major contributing factors placing South Africa near the bottom of the list, at 110 out of 115 countries. Energy efficiency is increasingly becoming a way of life for many people around the world. Even in South Africa, the government has started with the decommissioning of coal-fired power stations, while creating a favourable environment for ‘green energy’. The government is also supporting municipalities that aim to generate their own power through renewable energy, and this has resulted in a number of Western Cape municipalities adopting renewable energy in a bid to move off Eskom’s grid.

MANAGING THE ENERGY

The idea of relying entirely on natural resources for electricity supply across sectors can have high-cost implications if is not done right, no matter how visionary it may be for farms, businesses and homeowners. Managing the energy demand and being more energy efficient is just as crucial as doing thorough research before installing systems that generate alternative energy, according to Duncan Abel, Energy Finance Principal at Nedbank. ‘It is not just about generating your own power. There are certain steps that you need to take first to ensure that you generate enough power. If you go off the grid completely, then you don’t need Eskom’s permission. You have free will to do what you want when it comes to energy supply. It is only when you are still partially connected to Eskom’s grid that there are certain licencing and registration requirements to think about.’

OFF THE GRID COSTS

Abel adds that not all agriculture businesses or farmers can afford to go off the grid. Installation costs for renewable-energy systems are expensive, although they can become cost effective in the long term. Depending on the property size and energy need, going off the grid can cost north of R500 000 for a farm. Solar photovoltaic (PV) panels, for instance, are considered cheaper than Eskom’s tariffs. And it is important to note that energy demand does not always follow the sunshine cycle. This means that solar panels should be supplemented by batteries, which require dedicated solar panels and extra energy to charge them. You will also need a generator for backup. So, typically batteries double the cost of a system, while the generators that back up the batteries come with fuel costs. The best time to consider moving your business off the grid is when you see there is a significant energy security issue. That is if lost production and operations far outweigh the cost of going off grid or installing a hybrid solution. Ultimately, farming businesses need to manage their electricity demand, be more energy efficient and generate only as much electricity as they can use every day. By John Hudson

energy efficiency is increasingly becoming a way of life for many people around the world. even in south africa, the government has started with the decommissioning of coal-fired power stations, while creating a favourable environment for ‘green energy’.