Agri-PV in South African winegrowing: Successful examples, investment costs for Agri-PV systems and promising potential

Successful examples of agri-PV in winegrowing in South Africa

Agri-photovoltaics (Agri-PV) combines agricultural production with the generation of renewable energy and has the potential to revolutionize the sustainability and profitability of viticulture. Even in South Africa, one of the world's most renowned wine-growing regions, there are promising approaches and successful implementations. The following provides a comprehensive overview of pilot projects, commercial applications, planned projects, as well as challenges and opportunities.

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Pilot projects and research

Sunfarming Food & Energy Plant

Since 2014, Sunfarming has been operating an innovative “Food & Energy Plant” on the campus of Northwest University in Potchefstroom. Here, scientific research is conducted on cultivating food crops and herbs beneath solar panels. The project was expanded in 2016 and now also serves as a training center for sustainable agriculture. This research impressively demonstrates that agri-PV not only provides energy but can also have positive impacts on agriculture.

Geisenheim University

Geisenheim University, in collaboration with South African partners, is researching the impact of agri-photovoltaics (Agri-PV) on viticulture. In a unique real-world research laboratory, parameters such as yields, grape quality, and microclimate are being investigated. The aim is to establish a scientifically sound basis for the use of Agri-PV in winegrowing, thus providing winegrowers with a solid foundation for decision-making.

Commercial implementations

Avondale Wine Estate

Avondale Wine Estate, known for its environmentally friendly wine production, recently installed a modern solar power system, making the estate energy independent. While this is not a classic agrivoltaic system, this example demonstrates the growing interest in renewable energy within the wine industry.

Boland Cellar

Boland Cellar, one of the largest wine companies in South Africa, has installed a 473-kilowatt photovoltaic system. This covers about a quarter of the company's energy needs and reduces electricity costs by 34%. The economic benefits of such an installation are an incentive for other winegrowers to implement similar systems.

Planned projects

Sunfarming's Expansion

Sunfarming is planning further “Food & Energy” plants in the South African provinces of Eastern and Western Cape. These will not only generate energy for private consumers but also serve as training centers for sustainable agriculture. Such projects underscore the growing interest in agri-PV as an innovative solution to energy and agricultural challenges.

Challenges and opportunities

challenges

Despite the positive examples, there are some challenges that stand in the way of widespread implementation of agri-PV:

• High initial investments: The costs for installing agri-PV systems are high and represent a financial burden for many winegrowers.
• Bureaucratic hurdles: Approval procedures can be complex and lengthy, which makes planning and implementation difficult.
• Technological requirements: Innovative technologies such as AI-controlled, dynamic agri-PV systems can entail additional costs and technical effort.

Potentials

However, the advantages of agri-PV should not be underestimated:

• Climate protection: Agri-PV can help winegrowers adapt to the effects of climate change. Shading from solar panels reduces heat and drought stress for the plants.
• Water saving: Studies show that evaporation can be reduced by 10-30% through agri-PV, which is a great advantage in water-scarce regions such as South Africa.
• Additional income: In addition to agricultural production, winegrowers can tap into additional sources of income through electricity generation.

With targeted research and political support, agri-PV could become a key factor in the sustainable transformation of South African viticulture.

Investment costs for agri-PV systems

The investment costs for agri-PV systems in viticulture depend on numerous factors. General and specific information on these costs is presented below.

General investments in agri-PV in South Africa

• In 2018, investments in photovoltaic systems in the South African agricultural sector were estimated at 630 to 960 million Rand (approximately 33-50 million euros).
• These investments corresponded to a total installed capacity of approximately 60 MWp.

Costs for specific projects

• South Africa's oldest winery invested approximately 2.78 million Rand (around 145,000 euros) in a solar system.
• Innovative, AI-driven agri-PV systems may increase costs due to advanced technology, but offer long-term economic benefits.

Factors that influence costs

• System size: Smaller systems can be more cost-effective, but offer less energy savings.
• Location: Local climatic conditions and soil composition influence installation costs.
• Technology: Simpler systems are cheaper, while dynamic agri-PV solutions require higher investments.

economics

Despite the high initial investments, model calculations show promising economic viability:

• Even in unfavorable scenarios, a return of 23% and a net present value of over 2.5 million Rand (approx. 130,000 euros) are projected.
• In the best case scenario, the return can be up to 43%, with an amortization period of only 2.5 years.

However, the actual costs and economic viability vary considerably depending on the project and local conditions. More detailed studies and pilot projects specifically for viticulture are needed to make informed decisions.

Agri-PV offers tremendous opportunities for South African viticulture, both economically and ecologically. Successful pilot projects and initial commercial applications demonstrate the potential of this technology. Despite challenges such as high initial investments and bureaucratic hurdles, the potential benefits are overwhelming: protection against the effects of climate change, water conservation, and additional revenue streams through electricity production. With further research, political support, and tailored incentive programs, Agri-PV could be key to a sustainable future for viticulture in South Africa.

 

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Renewable energies in viticulture: Agri-photovoltaics as a future solution in South Africa

The integration of photovoltaic systems into agriculture, particularly in viticulture, is attracting increasing interest worldwide. In South Africa, a country with a long winemaking tradition and a high demand for renewable energy, promising developments in the field of agri-photovoltaics (agri-PV) are emerging. The combination of agricultural use and solar power generation offers not only ecological advantages but also opens up new economic opportunities for winegrowers.

Although agri-PV is still in a relatively early stage of development in South African viticulture, there are already remarkable examples of successful pilot projects and commercial applications. These initiatives demonstrate the great potential of this technology, but also face specific challenges.

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Pioneering work in research and development

Scientific research projects have laid an important foundation for the establishment of agri-PV in South Africa. Of particular note is Sunfarming's "Food & Energy Plant," which has been operating on the campus of Northwest University in Potchefstroom since 2014. This innovative project serves as a real-world laboratory where the interactions between food crops and solar panels are studied under actual conditions. The focus is not only on electricity generation but also on optimizing the cultivation of various crops and herbs in the partial shade of the solar panels. The facility was expanded in 2016 to include a training center, underscoring the importance of knowledge transfer and education for the widespread adoption of agri-PV.

Geisenheim University in Germany, in cooperation with South African partner institutions, is also intensively involved in researching the effects of agri-PV on viticulture. Detailed studies are being conducted in a unique real-world research laboratory to understand how shading by PV modules affects key aspects of winemaking. These include vine yields, grape quality, and the vineyard microclimate. The findings are crucial for optimally adapting agri-PV systems to the needs of viticulture and maximizing potential synergies. For example, researchers are investigating how altered light incidence affects vine photosynthesis and to what extent shading can provide protection against extreme heat and sunburn.

Commercial applications as a signpost for the future

Beyond pure research, there are also encouraging examples of commercially viable agri-PV applications in South African winemaking. A pioneer in this area is Avondale Wine Estate. Although the state-of-the-art solar array installed there is not a classic agri-PV system, as it is not built directly above the vineyards, it impressively demonstrates the growing interest of the South African wine industry in renewable energy solutions. The system enables Avondale to meet its entire energy needs, thus taking a significant step towards energy independence. This sends a clear signal to the industry that sustainability and profitability can go hand in hand.

Another notable example is Boland Cellar, one of South Africa's largest wine companies. The company has installed a 473-kilowatt photovoltaic system. This system is a prime example of how renewable energy can be integrated into the operations of a large wine producer. The solar energy generated already covers a quarter of the company's total energy needs and has resulted in a significant reduction in electricity costs of approximately 34 percent. These figures illustrate the economic potential of solar energy in the wine sector and can serve as an incentive for further investment in renewable energy.

Planned projects with a focus on sustainability

The positive experiences and growing awareness of the benefits of agri-PV are leading to further concrete project planning. Sunfarming plans to build additional "Food & Energy" plants in the key wine-growing regions of the Eastern and Western Cape. These projects serve a dual purpose: firstly, the generated electricity will be sold to private consumers, creating an additional source of income. Secondly, the plants will serve as training centers for sustainable agriculture, thus contributing to the dissemination of knowledge and best practices in the field of agri-PV. These planned initiatives demonstrate that agri-PV is understood not only as an energy supplier but also as a tool for promoting sustainable agricultural practices.

Challenges and solutions

Despite promising examples, the widespread adoption and economic success of agri-PV in South African viticulture still faces several challenges. A key factor is the comparatively high initial investment required for installing agri-PV systems. This can represent a significant financial hurdle, especially for smaller wineries.

Another limiting factor is the bureaucratic hurdles involved in the permitting process for such installations. Complex and lengthy processes can delay the implementation of agri-PV projects and make them unattractive. Simplified and accelerated permitting procedures are needed to facilitate investment in this promising sector.

Furthermore, the need for tailored support programs becomes clear. Government incentives and financial assistance could make a crucial contribution to reducing initial investment costs and improving the profitability of agri-PV systems for winegrowers. Such support programs could include, for example, low-interest loans, investment grants, or feed-in tariffs for the solar power generated.

The untapped potential: Advantages of agri-PV in detail

Despite the aforementioned challenges, the potential benefits of agri-PV in South African viticulture clearly outweigh the disadvantages. A key aspect is protection against the increasing effects of climate change. The shading provided by the solar panels can protect the vines from extreme heat and intense sunlight, which is particularly important during the hot summer months. This can reduce heat stress, prevent sunburn damage to the grapes, and thus ensure the quality of the harvest.

Furthermore, agri-PV contributes to water conservation. The reduced evaporation under the solar panels can significantly lower the water requirements of the vines. Water savings of 10 to 30 percent are estimated to be realistic. In a region increasingly affected by droughts and water scarcity, this represents an immense advantage and can decisively improve the long-term sustainability of viticulture.

Another important aspect is the additional source of income generated by electricity production. The solar power produced can either be used for self-consumption, thus reducing energy costs, or fed into the public grid, generating additional revenue. This diversification of income sources can increase the economic stability of winegrowing operations and make them more resilient to market fluctuations.

In addition to these direct advantages, agri-PV also offers positive side effects. For example, the shading provided by the modules can improve the microclimate in the vineyard, which can have a positive impact on plant health and biodiversity. Some studies suggest that a more diverse range of flora and fauna can establish themselves under agri-PV systems.

Investment costs: A challenge with a long-term perspective

The question of investment costs for agri-PV systems in South African vineyards is complex and depends on various factors. Providing precise, general figures is difficult at this time, as costs vary considerably depending on the size of the system, the technology chosen, and specific site conditions.

In general, it can be said that the initial investments for agri-PV systems tend to be higher than for conventional ground-mounted systems. This is due, among other things, to the additional costs for the substructure, which must be dimensioned to support the solar modules while also allowing agricultural use underneath.

An estimate from 2018 suggests that investments in PV systems across the South African agricultural sector ranged between 630 and 960 million Rand, corresponding to a total installed capacity of approximately 60 megawatts. However, these figures provide only a rough overview of the entire agricultural sector and do not allow for direct conclusions regarding the specific costs in viticulture.

More specific details are available for individual projects. For example, the installation of a solar system on South Africa's oldest wine estate was reported to cost 2.78 million Rand. However, it's important to note that this is not a classic agrivoltaic system, but rather a rooftop installation.

The cost of agri-PV systems is significantly influenced by the chosen technology. Innovative approaches such as dynamic agri-PV systems, where the orientation of the solar modules is controlled by artificial intelligence, can optimize the efficiency of electricity generation and synergy effects with agricultural use, but are generally also associated with higher costs.

Economic efficiency and long-term profitability

Despite the higher initial investments, various studies and model calculations indicate potentially high profitability for agri-PV systems in viticulture. Even in less favorable scenarios, returns of over 20 percent and a significant net present value have been projected. In the best-case scenario, returns could be considerably higher, with payback periods of just a few years.

However, it is crucial to emphasize that these figures are based on estimates and model calculations, and actual economic viability depends heavily on the individual case. Factors such as solar irradiance at the site, electricity prices, subsidy conditions, and specific management practices play a decisive role.

For a more detailed cost-benefit analysis, further specific studies and pilot projects are needed that specifically address the framework conditions in South African viticulture. These should consider not only direct costs and returns, but also long-term benefits such as improved resilience to climate change and potential savings in operating costs.

Agri-PV as an opportunity for a sustainable future of South African viticulture

The examples and research findings to date underscore the considerable potential of agri-PV in South African viticulture. The technology offers a promising way to address the challenges of climate change, increase resource efficiency, and simultaneously strengthen the economic foundation of winegrowing operations.

Although the initial investment costs and bureaucratic hurdles should not be underestimated, the long-term prospects and potential benefits suggest that the use of agri-PV can be worthwhile for many wineries in South Africa. With further research, targeted support programs, and policies that promote innovation in renewable energy, agri-PV could play a key role in the sustainable transformation of South African viticulture and help future-proof this important industry. Combining traditional viticulture with modern solar technology is a promising approach to reconciling environmental and economic goals and equipping South African winemaking for the challenges of the future.

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