In Central Otago, New Zealand, a cherry grower has made strides in sustainable agriculture by installing a 100kW solar system at Forest Lodge Orchard, aiming to mitigate the impact of rising wholesale electricity spot prices. Mike and Rebecca Casey have taken this initiative in response to the low levels in southern hydro lakes, which have caused a spike in electricity costs. Speaking at the AgriInnovation Summit, Mr. Casey highlighted the necessity of self-generated electricity to protect businesses from fluctuating energy costs and expressed a desire for government policy changes to allow farmers to participate in the energy market.
Mr. Casey criticized the current tariff system, advocating for a more inclusive market that allows smaller players to contribute. He detailed the economics of his solar investment, noting the significant difference in cost per kilowatt-hour between grid power and solar-generated electricity, even when factoring in the costs of financing the system and batteries. Despite the initial higher cost of electric machinery, Mr. Casey reported annual energy savings and emphasized the decreasing cost and increasing efficiency of electric alternatives to traditional fossil fuel-powered equipment.
By establishing an agreement with Aurora for wholesale power transactions, Mr. Casey has begun to explore the potential for turning energy management into a revenue stream for the farm. He shared insights on the investment and return aspects of installing solar systems, including the expected lifespan of the equipment and the practicalities of panel installation and maintenance.
Mr. Casey's commitment to sustainability extends beyond his orchard. He has launched the charity Rewiring Aotearoa with the ambitious goal of electrifying 10 million fossil fuel machines by 2030, aiming to significantly reduce New Zealand's emissions. His efforts are in line with the government's recent announcements to enhance energy security and market regulation, including improving the competitive landscape for solar energy and addressing regulatory barriers to its installation.
Source: EnergyCentral