Farmers are desperate to diversify their income sources due to the unpredictable nature of agriculture exacerbated by climate change, load shedding, and export challenges. According to Joubert Roux, co-founder of Zero Carbon Charge, one significant opportunity for diversification is participating in the development of a network of off-grid solar-powered electric vehicle (EV) charging stations on their land.
In the face of climate change, agriculture is becoming increasingly unpredictable. With additional shocks like load shedding and export issues in South Africa, farmers are looking to expand their revenue streams and create additional financial stability.
According to Stats SA data, the largest share of farmers’ income, almost 90%, comes from the sale of goods. The second largest share, at 3.4% falls into the “other income category” which is larger than the proportion of income earned from services rendered, rental, interest and foreign exchange profits.
While this may not seem like a significant proportion given the scale of the income from sales of crops and animals, this category grew by 29.5% between 2021and 2022 pointing to an effort by farmers to diversify their income streams.
The growth in agri-tourism for example (Vinpro estimates that wine tourism alone contributed R7.2 billion to the GDP in 2019), points to a desire for farmers to spread the risk, so when there is an unexpected event, like a drought, a flood, or increases in load shedding, a secondary income stream can fill the gaps in tough economic times.
Agri-tourism is not without its risks – as we saw during Covid – and is still at risk from climate change and load shedding. There is, however, some opportunity to diversify into the infrastructure, that more and more, will underpin agri-tourism and small-town economies.
Supporting charging infrastructure
While South Africa lags behind the USA and Europe in the adoption of electric vehicles, there is still remarkable growth on the horizon. In the next five years, a quarter of new car sales in South Africa will be electric.
Charging facilities in cities are already commonplace at malls and in parking lots, but what happens to owners who want to take a trip outside of a big city? Zero Carbon Charge answers this question with a network of 120 off-grid solar-powered charging stations that will be spaced 150km apart across the country.
Critically, this network won’t rely on Eskom’s fossil-fuel-powered grid, so will be load-shedding proof and won’t contribute to increased carbon emissions. Our own research shows that that an EV charged by Eskom’s predominantly coal-fired grid emits 5.3 metric tonnes of carbon emissions in a year. This is even higher than a petrol vehicle which, on average, emits 4.4 metric tonnes of carbon emissions in a year if driven over the same distance.
The plan also relies on agricultural land to build these stations and presents a significant opportunity for farmers to become a part of the electrification value chain. The 120 EV charging sites will provide them with an additional revenue stream, with landowners receiving 5% of the charging revenue, while another portion of the proceeds will be reinvested into socio-economic projects. Farmers will also have the option of utilising any surplus electricity generated by the charging station on their land.
Related stories
An additional benefit that will be created is increased security where the charging stations have been built. This is because Zero Carbon Charge have contracted with local company Safrisat to provide visual and motion sensors at each charging facility which will be centrally monitored and linked to local rapid response units.
Our charging stations will also be integrated into local rural safety networks, with extra security cameras being donated to cover surrounding areas as well as all information generated by the central control room being shared with local security structures.
Economic impact
Zero Carbon Charge’s renewable charging stations will also offer major economic opportunities in mostly poor rural areas. Around R2.3 billion billion is being invested to build the facilities across the country. A study undertaken by the Bureau for Food and Agricultural Policy (BFAP) estimates that the project will also create thousands of temporary and permanent jobs in these areas including 5 800 semi and unskilled jobs and 6 400 skilled jobs for the four-to-eight-month construction phase.
In the operational phase, there is potential for 880 unskilled, 1 540 semi-skilled and 330 skilled permanent jobs and about 1 100 temporary jobs on an ongoing basis.
Each charging site will also become a mini-attraction, with a farm stall offering coffee and snacks to be enjoyed while cars charge, furthering stimulating local economies.
Because the charging sites use solar-PV and batteries with hydro-treated vegetable oil as a backup energy source, they will not be drawing from the already constrained local power supply in many of South Africa’s rural areas and small towns.
We also recognise that the business of farming remains the primary income source for farmers, which requires valuable agricultural land. The BFAP study has determined that combined, Zero Carbon Charge’s green charging network will occupy just 0.01% of agricultural land, some of which is not actively farmed.
The way forward
Work has already begun on the first site in Wolmaransstad in North West, and, pending various planning and land use approvals, we estimate that the full network of solar power charging sites will be operational by September 2025, providing a carbon-free way to travel across the country.
It seems fitting that agriculture, a sector that has the most to lose to climate change, will have an opportunity to play an active part in making that happen and in this way, will also assist government in decarbonising the transport sector and achieving its net-zero targets.
- Joubert Roux is co-founder of Zero Carbon Charge. The views and opinions expressed in this article are those of the author and do not necessarily reflect the views or positions of Food For Mzansi.
READ NEXT: Meet the host farmers for our 2024 provincial farmer days!
Sign up for Mzansi Today: Your daily take on the news and happenings from the agriculture value chain.
