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Sanedi

Switch Africa Green

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Sanedi

  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
  6. 6. EXAMPLE OF ENERGY USAGE ALONG THE VALUE CHAIN OF CEREALS PRODUCTION BASED ON US DATA (CANNING, ET AL., 2010) Energy in Agri Value Chains (Cont.)
  7. 7. Energy In Agriculture ENERGY CONSUMPTION PER KG OF HORTICULTURAL PRODUCT PRODUCED (KEMPEN & KRAENZLEIN, 2007)
  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 nicolea@sanedi.org.za

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