Could EVs in Agriculture spur rural electrification?

From the newsletter

EVs and electric tractors (ETs) could be the key to electrifying rural areas in Sub-Saharan Africa, according to a new study by researchers at the Technical University of Munich. By increasing electricity demand in rural areas, EVs and ETs make it more cost-effective to build the infrastructure needed to provide electricity.

• The researchers used a model to simulate the impact of EVs and ETs on rural electrification in Nigeria and Chad.    

• The model found that EVs and ETs could lead to a significant reduction of up to 54% in the cost of electricity in rural areas.

More details

• Electrification remains a significant challenge in Sub-Saharan Africa, with about 75% of the region, predominantly rural communities engaged in agricultural activities, lacking access to electricity. 

• The remoteness of these areas and the low demand density for grid extension make expanding the grid expensive. 

• While mini-grids and standalone solar systems offer promising solutions and are gaining traction, the current electricity demand in mini-grids is still too low to ensure immediate returns on investment.

• EVs and ETs offer a promising solution to overcome these challenges and accelerate rural electrification.  However, there's also potential to increase economic activity and, consequently, the demand for electricity through the mechanisation of agriculture and the motorisation of transport. 

• Currently, most of Africa's farmers are small-scale, and their farms remain largely unmechanised. 

• In Sub-Saharan Africa, there are only about 28 tractors per 1,000 hectares of cultivated land, compared to 241 tractors in other regions. This lack of mechanisation limits productivity, as 50–80% of the cultivated area in Sub-Saharan Africa is still tilled by hand. 

• Research indicates that mechanised farms produce significantly more than those relying solely on manual labour. Increased productivity can lead to higher incomes and greater electricity demand.

• Studies in Nigeria and Chad highlight the potential of ETs to drive least-cost electrification strategies, particularly in areas with significant cropland. 

• Field trials in Rwanda have demonstrated the feasibility of ETs, showcasing their environmental benefits and potential to improve agricultural productivity.

Our take

• Many farms in Africa remain unmechanised, presenting a potential opportunity for least-cost electrification if bundled with productive use activities like electric tractors.

• The transition to EVs and ETs in general is an opportunity, particularly for countries practising large-scale farming. 

• Large agricultural farms can be used to set up solar panels, providing effective charging for farmers’ fleet of vehicles and enabling them to generate income by charging EVs for others, ultimately reducing their operational expenses.