Powering your worldAgriculture Funding Brochure

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Table of contents

Agriculture in South Africa

The importance of the sector

The Farmer – businessman

Eskom’s rebate programmes

Technologies

Case Study: Kromme Rivier

Poultry Farm

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Agricultural activities offer great potential to create jobs in South Africa and are, therefore, an important element of the New Growth Path, the government’s plan to create 5 million new jobs by 2020.

Agriculture in South Africa

A business-to-business partnership focused on inviting South Africa’s farmers to join hands with Eskom in a national drive towards establishing smart energy use, as one of the most effective weapons in the fight against rising operating costs.

Apart from the fact that approximately 8 million people are directly or indirectly dependent on agriculture for their livelihoods. The sector is key to our nation’s food security and foreign currency generating food exports.

Our agricultural economy encompasses both highly developed commercial farming and subsistence farming, in deep rural areas.

South Africa’s biodiversity – like Mediterranean, subtropical or semi-desert – and a coastline of 3,000km, supporting the cultivation of a diverse range of agricultural and marine products including livestock and game; wool; wheat, maize, sugarcane and sunflowers; and deciduous, citrus and subtropical fruit.

The agricultural field includes crop production, mixed farming in summer/winter rainfall areas, sheep farming in semi-arid and arid regions and cattle breeding in the bushveld. With only a small portion of South Africa’s land suitable for crop production, with uneven and unpredictable rainfall, approximately 1,3 million hectares are under irrigation and 50% of South Africa’s water is used in agriculture.

Our country’s First World infrastructure, ‘opposite seasonality’ to huge markets in the northern hemisphere, and highly competitive input costs ensure South Africa of a major role in agriculture in global markets.

The importance of the sector

Farming in South Africa, as in the rest of the world, is faced with a steady increase in costs on all fronts.

Labour, infrastructure and equipment, livestock and seed stock, transport and energy are getting more expensive. Farmers need to counterbalance this threat and require new business strategies to:

• Reduce operating costs

• Improve bottom line earnings

• Bolster the economic resilience of the agricultural sector as a whole, as an objective of national importance.

The farmer – businessman

Optimising energy consumption on your farm – as a measure to reduce energy costs and lower operating costs – can be implemented immediately and will improve your farm’s bottom line.

Eskom, energy-efficient technology suppliers and energy efficiency Project Developers …

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Eskom’s Energy Advisors, supported by the expertise of suppliers of energy-efficient technologies, and the excellence of Project Developers in executing energy-saving projects are on standby, to help you make the switch to energy-efficient technology solutions and save … they will visit you on your farm to: • Analyse the energy and resource efficiency of your electrical infrastructure• Conduct an energy audit of your farm• Give you technical advise• Inform you of Eskom’s rebate programmes, and the funding opportunities

available to you when you replace energy-intensive technologies with energy-efficient solutions

• Implementing an energy-efficient retrofit on your farm with funding from Eskom is a phone call away.

Eskom’s rebate programmes

The Standard Product

Developed to support Eskom in its strategic commitment to save energy, and bring South Africa closer to being energy-efficient one farm and one business at a time. The rebate programmes pave the way for farmers to make the switch to energy-efficient solutions and power their operations by being electricity smart and financially savvy:

is tailor-made for customers who achieve energy savings greater than 1kW and less than 2MW per annum.

• Funding is capped at R1,875 million per project.• Only technologies approved by Eskom will be considered, including

off-the-shelf products like energy-efficient lighting, heat pumps and energy and water saving shower heads.

• The programme is ideal for farms, retail outlets, shopping centres, guest houses, B&Bs, hotels, lodges, factories and residential estates.

• A new, streamlined, approval process takes two weeks from project submission.

• Projects may be undertaken by yourself, an Energy Services Company (ESCo) or a Project Developer on your behalf.

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Payment rates and benchmarks Benchmark up to Rm/MW

c/kWh

Lighting systems 5.25 42

Hot water systems 5.25 42

Process optimisation systems 5.25 42

Building management systems 5.25 42

Industrial and commercial solar water systems

8.73 70

The Standard Offer...supports funding for the implementation of large retrofit projects.

• Electricity savings to be achieved should range from 50kW to 5MW sustainable over a period of three years.

• Focus is on electricity usage during 16 weekday hours from 6am to 10pm.

• Technologies supported include lighting systems, building management systems, hot water systems, industrial and commercial solar water heating systems, process optimisation systems and renewable technologies (biomass waste; geothermal, solar, thermal gradient and ground source heat; wind energy and hydro, tidal and wave power).

• Projects may be undertaken by yourself, an Energy Services Company (ESCo) or a Project Developer on your behalf.

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In dairies:• Variable Speed Drives – to regulate airflow through vacuum pumps

according to the need of milking machine systems during milking and washing periods

• Variable Speed Drives – on the compressor units on bulk tanks

• Solar water heating systems or heat pumps – to ease the peak load on electrical element geysers used for pasteurisation, and the supply of hot water to sterilise milking machines, bulk tanks and dairy equipment

• Energy-efficient lights – in and around the dairy parlour, in post-feeding areas and for security at night

• Whirley Bird fans on the roofs of engine rooms – to remove heat in the poorly ventilated areas where vacuum pumps, electric motors and compressor units of bulk tanks are installed

• Heat recovery – from the condenser unit of the refrigeration cycle to heat water for sterilising equipment and supporting electrical element geysers during peak periods of demand for hot water

• Biogas plants – to generate electricity from cow manure, used in the dairy or elsewhere on the farm, for zone heating, lighting, cooking and heating water.

...offers funding for the implementation of large retrofit projects.

• It is aimed at Energy Services Companies (ESCos) that specialise in identifying opportunities for achieving reductions in electricity consumption, scope and execute projects as basis for establishing a four-way partnership between Eskom, the farmer, an ESCo and a measurement and verification expert.

• Potential load savings should be 1MW or more.

Technologies

The ESCo Model

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In broiler houses, piggeries, zero grazing systems and feedlots: • Compact Fluorescent Lamps (CFLs) or Light Emitting Diodes (LEDs) – for

lighting and outdoor security lights

• Variable Speed Drives – on ventilation fans; and electrical motors of feeding, milling and mixing systems

• Biogas plants – to generate electricity from the layer hen, pig and cattle manure to use for heating water to sterilise equipment, buildings and calf rearing pens; and power animal feed processing in feedlots, gas brooders in broiler houses, and heaters for piglets and calves.

In greenhouses: • Compact Fluorescent Lamps (CFLs) or Light Emitting Diodes (LEDs) – for

lighting packaging houses, offices, and outdoor security lights

• Compact Fluorescent Lamps (CFLs) – for growing flowers in greenhouses

• Variable Speed Drives – on ventilation fans to regulate air temperature inside greenhouses, pumps supplying water to greenhouses, and after-harvest cold rooms.

In grain processors:• Compact Fluorescent Lamps (CFLs) or Light Emitting Diodes (LEDs) –

for lighting in storerooms, offices, grain silos and processing rooms; and outdoor security lights

• Variable Speed Drives – in milling, mixing, sieving, conveying, ventilation and drying processes.

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In irrigation, energy usage can be optimised by correcting a wide range of system problems such as: • Water leaks

• Inadequate maintenance of sprayers

• Eccentric reducers that are too short

• Incorrect spacing and installation of multi-suction pipes

• Unnecessary pipe bends and elbows

• Bends and valves installed too close to the pump inlet.

Poultry farmer Bryn Groenewald, cycles 130,000 broiler chickens in phases through eight, 15,000 chicken sheds on this third generation Western Cape poultry farm.

Case Study: Kromme Rivier Poultry Farm

Like most farmers in the area, Groenewald illuminated his broiler sheds with …• 32 X 60W incandescent lightbulbs per shed.

Benson LED, a Project Developer – advised Kromme Rivier to apply for funding through Eskom’s Standard Product Rebate Programme, and replaced 256 incandescent lightbulbs and two floodlights with energy-efficient off-the-shelf, Light Emitting Diode (LED) lighting.

Benson LED also assisted Groenewald through the application process. They helped with the paper work and submission of the application form to Eskom. They also covered an energy audit of existing incandescent shed lightbulbs, and two external mercury vapour floodlights. Bryn Groenewald agreed to all the suggestions made by Benson LED.

The retrofit commenced … When the funding application was approved, the Benson team moved onto the farm in June 2012, retrofitted the Light Emitting Diode (LED) lighting and disposed of the old technology – under supervision – to the approved Vissershok landfill.

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The retrofit comprised …• Replacing 256 X 60W incandescent globes with 6W Light Emitting Diodes (LEDs).

• Replacing 2 X 125W Mercury vapour floodlights with 20W Light Emitting Diodes (LEDs).

Benson completed the retrofit and submitted detailed documentation that would enable Eskom to process funding.

The Standard Product Rebate Programme achieved the following on behalf of the farm …• Funding to an amount of R52,873.75, which covered 85% of the total

project cost of R70,657.

• Reduction in energy usage of 51,226kWh per annum.

• Savings in energy cost of R60,053 per annum.

Kromme Rivier Poultry Farm is now powering their broiler sheds by being electricity smart and financially savvy.

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Issued by Eskom Integrated Demand Management June 2013Eskom Holdings SOC Limited Reg No 2002/015527/06

Visit www.eskom.co.za/idm – or call 08600 37566 and ask to speak to an Eskom Energy Advisor – for detailed information on how to fund the switch to

energy-efficient technologies, processes and systems on your farm through Eskom’s range of rebate programmes.

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