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Switch Africa Green

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  1. 1. NATIONAL CLEANER PRODUCTION CENTRE SOUTH AFRICA Energy Efficiency in Agriculture SWITCH Africa Green 14th September 2017 NCPC Industrial Efficiency Conference 2017 Cape Town
  2. 2. • Small contribution GDP relative to the other industries (3%-5%). • Significant role in providing employment, especially in rural areas, as well as foreign exchange earnings. • Retention of agricultural activities in the country integral towards achieving SA socio-economic priorities of alleviating poverty, reducing unemployment, and ensuring food security. • Although agriculture accounts for just about 2% of energy consumption, its reliance on energy inputs is significant. • Electricity accounts for about a third of energy usage in agriculture. • Security of supply and price – “cheap and accessible”. The Importance of Energy In Agriculture
  3. 3. Agriculture is heavily reliant on energy as a production factor, which makes it highly susceptible to energy prices and energy availability. • Clean energy in agriculture as a sector is still untapped. • Significant benefits to adapting EE and RE. • Need to understand the nature of the sector: o Data is limited and aggregated to the entire sector incl. fisheries and forestry o No data for agricultural subsectors or value chains o Formal vs. informal businesses o Urban vs. peri-urban vs. rural o Energy is an input and therefore adaptable • Higher and unstable energy prices can hinder the profitability of agriculture. • Need for the sector to find ways to become more energy independent. Energy in Agriculture
  4. 4. • Crop production is the least energy intensive, as a result of low energy intense activities. • Horticulture is marginally more energy intensive than crop production, with exception of greenhouse activities, which are highly energy-intensive. • Animal and animal products consume the largest amount of energy, more so than crop and horticulture making it 5-7 times more energy intensive • Sector is heavily reliant on the supply of direct and indirect energy, e.g. fuels and electricity, susceptible to exogenous shocks such as energy prices and energy availability. • Higher and unstable energy prices hinder the profitability of agriculture. • Need for the sector to find ways to become more energy independent. • Most of direct energy used in agriculture: diesel Key Findings
  5. 5. Energy in Agri Value Chains
  8. 8. • Most of energy used in the South African agricultural sector is consumed in traction (67%), i.e. the use of farming machinery and equipment. • Irrigation (~8%) • Process heating (~6%) • Water heating (~6%) Some Stats
  9. 9. Energy Trends in Agriculture (DoE,2012)
  10. 10. • Reduced costs and increased profitability. • Improved crop quality. • Increased sales from customers encouraged to purchase more ‘green’ produce. • Enhanced business credentials through addressing environmental issues. • Having a more energy efficient technology replacing a conventional lesser energy efficient technology. • Incorporating additional energy saving technologies in order to realise some energy savings, e.g. incorporating sensors for lighting and air-conditioning equipment, using double glazed windows and insulation in houses, etc. • A change in behavioural practices; for example, utilising composting instead of extensive reliance on inorganic fertilisers. Benefits of Implementing EE Schemes in Agriculture
  11. 11. • Opportunities in the entire value chain e.g. o Fertiliser use o Irrigation o Refrigeration o Transport o Lighting o Crop drying o Machinery and vehicles (e.g. VSDs) o Greenhouses o Space heating o Hot water applications Benefits of Implementing EE Schemes in Agriculture
  12. 12. The National Development Plan 2030 (NDP 2012) • New Growth Path: Framework (2011) • Biofuels Industrial Strategy of the Republic of South Africa (2007) • Integrated Growth and Development Plan (IGDP 2012) • Green Paper on Land Reform (2011) • The Agriculture Policy Action Plan (APAP 2014) • White Paper on South African Land Policy (1997) • Strategic Plan for the Department of Agriculture, Forestry and Fisheries 2013/14 to 2017/18 (2013) • Policy on Agriculture in Sustainable Development • Agriculture Policy in South Africa (1998): a discussion document • National Policy on Food and Nutrition Security (2013) • The Integrated Food Security Strategy for South Africa (2002) • National Policy on Organic Production • National Strategy on Agroecology • The Integrated Food Security Strategy for South Africa (2002) • White Paper on Agriculture 1995 • South African Agricultural Production Strategy 2011-2025 • Strategic Plan for Smallholder Support 2011– 2014/15 (2013) • National Energy Efficiency Strategy (2012) • Industrial Policy Action Plan • National Climate Change Response White Paper (2011) • National Strategy for Sustainable Development and Action Plan (NSSD 1) 2011-2014 • New Growth Path: Accord 4 (Green Economy Accord) (2011) • National Framework for Sustainable Development in South Africa (2008) • Local Procurement Accord (2011) • White Paper on Energy Policy (1998) • White Paper on Renewable Energy (2003) Legislation and regulations: • The Conservation of Agricultural Resources Act 43 of 1983 • Regulations in terms of Section 12L of the Income Tax Act, 1962, on the Allowance for Energy Efficiency Savings (2013) • Regulations Regarding the Mandatory Blending of Biofuels with Petrol and Diesel (2012) • Regulations Regarding Petroleum Products Manufacturing Licences under the Petroleum Products Act 120 of 1977 • Electricity Regulation Act (Act No. 40 of 2006) • Regulatory Rules on Network Charges for the third party transportation of energy 2012 • Consumer Protection Act 2010-2014 Policy
  13. 13. SA’s promotion of key socio-economic priorities such as sustainable development, job creation, mitigation and adaptation to climate change, and promotion of food security is articulated in numerous national policies and strategic documents. Opportunities: • Acknowledgement of RE and EE as key drivers for sustainability. • Policies raise awareness on RE and EE. • 12L and the 12B of the Income Tax Act: financial incentive for farmers. • Toolkits: Practices and principles on investment into EE. • Direct socio-economic spin-off’s of implementing EE. Challenges: • Lack of enforcement. • Goal & interventions are long-term and fall short on short to medium-term solutions such as assistance in implementation or incentivized mechanisms serving as transitioning tools Policy
  14. 14. THANK YOU Nicole Algio Regional Secretariat Manager for REEEP, Southern Africa