The agriculture sector in South Africa is at a crossroads. Faced with rising international pressure to cut carbon emissions, escalating electricity tariffs, and a pressing need for reliable power, farmers are increasingly turning to sustainable energy solutions.
Hubble Energy, a leader in local innovation, provides advanced energy storage solutions tailored to the agriculture sector’s unique requirements.
Navigating carbon border adjustments and taxes
South African farmers are exporters to Europe, where products like citrus and wine are in high demand. The EU’s Carbon Border Adjustment Mechanism imposes tariffs on carbon-intensive imports, making it essential for farmers to reduce their carbon footprints to maintain access to the market.
Adopting greener practices is now a necessity to avoid additional costs and align with international standards.
Soaring electricity tariffs
Electricity prices in South Africa continue to rise steeply, with Eskom tariffs increasing by around 13% for 2024/2025. These rising costs significantly affect farmers, who depend on electricity for irrigation, refrigeration, and processing. Finding stable, cost-effective power solutions has become a top priority.
Supplied diesel dependence dilemma
Diesel generators are a long-standing fixture in South African agriculture, providing power for irrigation, machinery, and storage. However, this reliance on diesel comes with significant challenges.
Diesel prices surged by 79% between 2013 and 2023, contributing to higher operational costs for farmers and substantial carbon emissions. Dependency on diesel is becoming increasingly unsustainable.
Sustainable energy solutions
Hubble Energy’s sustainable power solutions offer numerous advantages:
Long-term return on investment
While the initial cost of lithium battery systems may be higher than diesel generators, the long-term savings are substantial. These include reduced fuel costs, lower maintenance expenses, increased efficiency and owning an asset with residual value. Farmers no longer need to front the full cost of these green initiatives, as financial assistance and funding options are available.
Predictable energy costs
South Africa’s electricity tariffs have consistently risen, with Eskom’s aggregate standard tariffs increasing by almost 15%/year since 2010. By generating and storing their own energy, farmers can shield themselves from rising costs, achieve more predictable energy expenses, and manage input costs.
Energy independence
Reliable energy storage solutions protect farmers from power outages and load-shedding, ensuring uninterrupted operations, greater productivity and protection against equipment damage.
Solutions for agriculture
Hubble Energy distinguishes itself through its local innovation and comprehensive support. Advanced research and development ensures it provides cutting-edge products, while extensive training, on-site commissioning and competitive warranties offer exceptional local support.
With proactive monitoring and repair centres across South Africa, Hubble Energy delivers reliable, high-quality energy solutions and prompt assistance. Hubble Energy’s solutions include:
- Energy Cube™, a silent, all-in one solution with IP54 certification for outdoor use and C4 rating for coastal installation.
- Container solutions, bespoke, all-in-one and modular energy storage for larger agricultural operations.
- High-voltage (1C and 0,5C) racks, designed for commercial and industrial use, offer scalable energy storage that adapts to growing farm requirements. The 1C and 0.5C racks provide different charge and discharge rates to suit various needs.
Embracing green energy is key to a sustainable and economically viable future for South African farmers.
By investing in renewable energy, farmers can reduce costs, ensure stable production, and meet international carbon standards to secure their place in the global market.
Sources: Codera Analytics (2024). ‘Historical Eskom electricity tariffs increases in SA’; Du Toit, A (2023). ‘Petrol vs Diesel prices in South Africa over the last 10 years’; SAnews.gov.za (2024). ‘Eskom applies electricity tariff increase’.
Email hv@hubbleenergy.com, phone 021 554 7773, or visit hubbleenergy.com.