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21 May 2018 Photo Naledi Posholi
Could wave power be an answer to SAs electricity crisis
Attending a recent guest lecture, were from the left: Prof Marian Tredoux UFS Department of Geology, Prof Stoffel Fourie fromWalter Sisulu University, and Thoriso Lekoetje a third-year UFS Geology student.
South Africa has a 2800-km long coastline with high wave energy potential that can generate electricity. Presenting a lecture at the UFS Department of Geology, Prof Stoffel Fourie discussed wave power as a possible solution to the country’s electricity needs. Prof Fourie is a geophysicist and the chairperson of research and development in the faculty of engineering at Walter Sisulu University.

Power at any time
Wave power is a renewable and sustainable resource. “It can provide continuous base load power because wave energy systems do not suffer from ‘time of day’ issues as other renewable energy options. This means that it can generate power at any time of the day,” said Prof Fourie. 
Discussed also was the wave power advantages and disadvantages. 

Wave energy advantages
• Wave energy is a reliable renewable energy resource;

• Reduces dependency on fossil fuels;

• Wave energy is predictable and consistent;

• Generates little or no pollution to the environment compared to other energy resources; and

• Presents no barriers or difficulty to migrating fish and aquatic animals.

Wave energy disadvantages
• Wave energy conversion devices are location dependent, thus limiting possible sites where they can be implemented;

• Offshore wave energy devices can be a threat to shipping as they are too small to detect by radar; and

• High capital investment required for start-up costs, construction and maintenance.

“Looking at both advantages and disadvantages, there is no doubt that South Africa can use this method to harvest energy. With the right investment and political buy-in, wave power could provide a continuous supply of energy and contribute to all South Africa’s electricity needs,” Prof Fourie said.

News Archive

Producers to save thousands with routine marketing strategies, says UFS researcher
2014-09-01

 

Photo: en.wikipedia.org

Using derivative markets as a marketing strategy can be complicated for farmers. The producers tend to use high risk strategies which include the selling of the crop on the cash market after harvest; whilst the high market risks require innovative strategies including the use of futures and options as traded on the South African Futures Exchange (SAFEX).

Using these innovative strategies are mostly due to a lack of interest and knowledge of the market. The purpose of the research conducted by Dr Dirk Strydom and Manfred Venter from the Department of Agricultural Economics at the University of the Free State (UFS) is to examine whether the adoption of a basic routine strategy is better than adopting no strategy at all.

The research illustrates that by using a Stochastic Efficiency with Respect to a Function (SERF) and Cumulative Distribution Function (CDF) that the use of five basic routine marketing strategies can be more rewarding. These basic strategies are:
• Put (plant time)
• Twelve-segment pricing
• Three-segment pricing
• Put (pollination)(Critical Moment in production/marketing process), and
• Pricing during pollination phase.

These strategies can be adopted by farmers without an in-depth understanding of the market and market-signals. Farmers can save as much as R1.6 million per year on a 2000ha farm with an average yield.

The results obtained from the research illustrate that each strategy is different for each crop. Very important is that the hedging strategies are better than no hedging strategy at all.

This research can also be applicable to the procurement side of the supply chain.

Maize milling firms use complex procurement strategies to procure their raw materials, or sometimes no strategy at all. In this research, basic routine price hedging strategies were analysed as part of the procurement of white maize over a ten-year period ranging from 2002–2012. Part of the pricing strategies used to procure white maize over the period of ten years were a call and min/max strategy. These strategies were compared to the baseline spot market. The data was obtained from the Johannesburg Stock Exchange’s Agricultural Products Division better known as SAFEX.

The results obtained from the research prove that by using basic routine price-hedging strategies to procure white maize, it is more beneficial to do so than by procuring from the spot market (a difference of more than R100 mil).

Thus, it can be concluded that it is not always necessary to use a complex method of sourcing white maize through SAFEX, to be efficient. By implementing a basic routine price hedging strategy year on year it can be better than procuring from the spot market.

Understanding the Maize Maze by Dr Dirk Strydom and Manfred Venter (pdf) - The Dairy Mail


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