Solar-Powered Farms in Asia: The Rise of Agrivoltaics for Food and Energy

In Dongying City, China, farmers are reaping the benefits of an innovative approach to aquaculture. Solar panels installed above their shrimp ponds not only generate clean energy for thousands of households but also enhance shrimp and sea cucumber yields by 50%.

This success story exemplifies the power of agrivoltaics, a sustainable farming method that integrates renewable energy with agriculture. The solar panels, installed several meters above the water, help to maintain consistent water temperatures, crucial for optimal shrimp and sea cucumber growth. Additionally, the leasing agreement with the solar power company provides farmers with a steady income and funds for modernizing their aquaculture operations.

Agrivoltaics is a farming method that strategically integrates solar panels with crops, livestock, or aquaculture. This dual-use system boosts food production while generating clean energy, maximizing land use efficiency. In a world grappling with increasing energy demand and competition for agricultural land, agrivoltaics offers a promising solution.

China leads the way in agrivoltaics, with over 500 projects showcasing the technology’s potential. Southeast Asian countries like Indonesia and the Philippines, with their abundant sunlight and vast agricultural landscapes, could greatly benefit from this approach. The region’s growing population and the urgency to reduce emissions underscore the need to balance land resources for both clean energy and food production.

Agrivoltaics offers a multitude of benefits for both farmers and the environment. Solar panels protect crops and animals from extreme weather, such as excessive heat and drought, by providing partial shade. Studies also indicate agrivoltaics can reduce water evaporation by 30%. The accompanying upgrades to agricultural infrastructure often lead to automation and mechanization, which can increase crop yields, especially in areas with excessive sunlight and high temperatures.

The benefits extend to the solar panels as well. Studies show that solar panels mounted over vegetation exhibit considerably lower surface temperatures than those mounted over bare ground. This cooling effect has a direct impact on the solar panels’ efficiency, as modules typically experience efficiency losses ranging from 0.1% to 0.5% for every degree Celsius increase above 25 degrees C (77 degrees F).

Agrivoltaics also offers farmers an additional income stream either by leasing the land to solar PV companies or, if the land-agreement is reversed, through cultivating the land at much lower costs, mitigating the impact of fluctuating crop yields and market prices. For example, these leasing agreements provide farmers with a consistent and foreseeable income from the land and obviate the need for farmers to fund the solar installations themselves.

Solar photovoltaic panels rise above an aquaculture farm in Dongying City, Shandong Province, China. Source : WRI China

Beyond economic benefits, agrivoltaics can enhance energy independence and reliability. Agrivoltaic systems contribute to decentralized renewable energy generation, which reduces reliance on centralized power grids, especially in rural communities. The development and maintenance of agrivoltaics systems also creates employment opportunities in rural areas — stimulating the local economy and fostering sustainable livelihoods. Furthermore, the co-location of solar panels with agricultural activities optimizes land usage, promoting efficient utilization of renewable energy resources and minimizing land-use conflicts.

Examples of agrivoltaics, like a greenhouse project in Hainan and a livestock grazing project in Inner Mongolia, are among the many projects in China that offer invaluable lessons for Southeast Asia and other regions seeking to harness the potential of agrivoltaics.

In Hainan, China, photovoltaic greenhouses combine solar panels with farming, enhancing crop growth and reducing greenhouse gas emissions by providing clean electricity to power grids. The solar companies lease land for solar PV project development and simultaneously provide it at no cost to agricultural companies for vegetable cultivation. This approach not only conserves land-leasing expenses, but also ensures year-round production, unaffected by adverse weather, such as typhoons and rainstorms.

The government and private herders established Inner Mongolia’s photovoltaic livestock grazing project, pioneering a blend of renewable energy and traditional pastoral practices. This project generates revenue from electricity sales to the grid and distributes dividends to herders based on their ownership stakes. Herders receive an annual return rate of 20%, while the rest of the revenue funds the local community’s infrastructure development.

Southeast Asia presents a rich tapestry of opportunities for implementing agrivoltaic projects. The installed solar capacity in Southeast Asia has already been growing consistently, indicating a robust future for solar energy development in the region.

However, the successful implementation of agrivoltaic systems in Southeast Asia faces several challenges. Progress in the region is hindered by the convoluted policy framework and the need for strategic land-use planning. In addition, countries like the Philippines and Indonesia, which are archipelagic countries, require technology and policies specific to the local politics, the pivotal role of village cooperatives and landscape.

Some measures to address these challenges could include policy alignment, local government engagement, strategic land use and capability development, community cooperation and ownership, and capacity building and technical support.

Agrivoltaics offers a promising solution to the complex task of harmonizing energy production and agriculture. By drawing inspiration from China’s experiences and customizing strategies to the local context, this approach could help drive economic growth, promote sustainable energy and deliver environmental benefits.

Realizing the full potential of agrivoltaics will require collaboration, policy alignment, and capacity building. But if successful, agrivoltaics can help pave the way to a more sustainable and prosperous future.

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