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26 May 2020 | Story Valentino Ndaba | Photo iStock
UFS campuses are transforming into research instruments while simultaneously improving campus operations through the Smart Grid initiative.

Imagine living in a smart home. Imagine monitoring your household’s electricity usage via an integrated system that would notify you of your daily electricity use, peak usage times, and tariffs and consumption at the location of the house. As a user, you would be able to take advantage of such information in order to manage your resources in a more efficient manner. This is just one example of what a Smart Grid can do.

The University of the Free State’s (UFS) Faculty of Natural and Agricultural Sciences has teamed up with the Department of University Estates to drive our very own Smart Grid initiative that is transforming the university’s power network into one with full control and monitoring. “A Smart Grid allows for resource optimisation and asset protection, especially in times like these,” said Nicolaas Esterhuysen, Director of Engineering Services. 

Why is it important for our university to have a Smart Grid?
Dr Jacques Maritz, Lecturer of Engineering Sciences at the Faculty, considers a Smart Grid the natural evolution of power grids in the era of Big Data, IoT and Machine Learning. Resources such as electricity, water and steam can now be monitored and controlled to promote savings and the protection of valuable infrastructure. “Aiming towards Smart Grid status, the UFS will improve resource service-delivery to its staff and students, while sculpting a digital twin of its campus’s power grid, consumer network and resource generators,” he added.
  
How will a Smart Grid improve student success?
The integrity, sustainability and continuous supply of energy directly affects the academic project on all three campuses. The implementation of a Smart Grid could allow improved service delivery and reaction time when any utility is interrupted, as well as maintaining the valuable infrastructure that serves the UFS community.

In what way does a Smart Grid improve the lives of staff members?
According to Dr Maritz  and Esterhuysen: “A Smart Grid will support staff to perform their teaching and research duties in a seamless manner, continuously optimising the energy that they consume to enable full comfort and reliability in energy supply, whilst simultaneously generating savings in energy and preventing wastage.”

The UFS already boasts most of the fundamental building blocks associated with the Smart Grid initiative, especially focusing on monitoring, grid protection, centralised and decentralised solar PV generation and software platforms to serve all these domains. However, to integrate all of these domains into one digital real-time paradigm will be a first for the UFS.

Some examples of the UFS smart grid applications currently in practice
Real-time remote monitoring and control that focuses on the following:
- We are able to detect power outages and don’t have to rely on customer complaints. This enables faster response time and fault identification, thus less downtime and an increase in reliability;
- Solar plant generation; 
- Monitoring our standby generation fleet; 
Identifying usage patterns and saving thereof;
Benchmarking buildings in terms of application usage, area or occupancy to determine energy efficiency and identify savings; and condition-based preventive maintenance that will increase reliability while saving costs.

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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