Agri SA says it is fully committed to helping fix Mzansi’s energy crisis, but it needs crucial groundwork from government first.
The organisation says South Africa’s cabinet ministers need to come up with immediate steps to action in the country’s new energy plan and is particularly interested in how the plan will apply to the agricultural sector.
Removing unnecessary limits
Most importantly, it calls for the removal of the 1 MW limit on embedded generation in the sector, which has made it uneconomical for farmers to invest in power generation.
“There is no reason why the 100 MW generation cap should not have been previously extended to the agricultural sector.”
Role players have tried in vain to get the cap lifted before and believe it must now be addressed with urgency. Agri SA will therefore be writing to mineral resources and energy minister Gwede Mantashe to address the matter swiftly.
Clarity on electricity sales
“Government must also announce the details of the plan to enable the sale of excess power into the grid,” Agri SA adds. Farmers who generate electricity can then share the benefits with fellow citizens, including small-scale farmers who cannot currently afford embedded generation.
Safety and stability of grid infrastructure
As a third point of action, government will also need to invest in the safety and stability of energy infrastructure to ensure that the grid is prepared to handle any excess power generated.
Motive to help
Agri SA says the country’s farmers have a vested interest in being part of the solution and could rapidly begin investing in small-scale embedded generation where possible.
“The escalation of load shedding has come at a particularly difficult time for the sector. Over the past year, the sector has seen above-inflation increases in the cost of vital inputs like fuel and fertiliser.
“The recent interest rate hikes have only exacerbated these cost pressures as South Africa’s farmers currently carry more than R190 billion in debt.”
About a quarter of Mzansi’s production also relies on irrigation and energy-intensive industries.
“Alleviating load shedding is therefore a vital concern for the agricultural sector. The implementation of the President’s plan will thus be crucial to ensuring South Africa’s food security.”
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