Energy storage can enhance SA agriculture

Energy-related challenges pose a significant obstacle to the agriculture sector's continued growth in South Africa, says Abe Cambridge, founder, and CEO of The Sun Exchange, which specializes in solar-energy projects.

- Abe Cambridge

"South Africa's agriculture sector is vital to the country's continued growth and development, and is an important source of job creation, GDP, food security, and even tourism. The International Trade Administration in the US describes the commercial agriculture sector in South Africa as the backbone of the agricultural economy, noting that in 2020 agriculture had the best growth rate of all economic sectors at 13,1%.

Unfortunately, energy-related challenges pose a significant obstacle to the sector's continued growth. In recent months, farmers have faced a 9,6% hike in Eskom tariffs, an increase in the price of diesel to R21,47/ due to the Russia-Ukraine war, and ongoing load-shedding. The lack of affordable, reliable, resilient energy sources can wreak havoc on commercial farms' productivity, profits, and ability to scale.

Emerging energy-storage technology offers an optimal solution to these challenges, particularly when coupled with renewables such as solar power, but until recently the price of batteries has been prohibitive, especially for mid-sized commercial farms. This is changing, however. A recent report by GreenCape, a Western Cape-based green economy non-profit organization, states that battery prices have fallen by 82% over the past decade, and are likely to fall even further due to improvements in scale, technology, and manufacturing.

LOAD-SHEDDING AND OUTAGES