Renewable energy benefits: decentralized solutions in agriculture. 11 th Meeting of the Council 24 May 2016

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1 Renewable energy benefits: decentralized solutions in agriculture 11 th Meeting of the Council 24 May 2016

2 IRENA s work on the topic

3 Assessing socio-economic benefits Economic Water pumping for irrigation Drying produce Socio-economic Health Environmental wellbeing education Refrigeration Agro-processing Cooking and water heating Lighting and communication 3

4 Economic benefits Socioeconomic Economic Health Environm ental Savings on energy spending Savings of USD 132 million from 614 thousand solar lights in Africa In India, 4,500 solar pumps saved around USD 360,000/yr on diesel subsidies Almost USD 4,000 savings on community in Nepal from IWM/E Tea curing in Sri Lanka saves 1.38 kg of fuel per1 kg of tea wellbeing education Job creation 76,000 jobs in the Global Alliance for Clean Cookstoves worldwide 7,572 people employed in operating 8,493 IWMs in Nepal Biogas programme in Nepal employs total 1,083 FTEs on an annual basis Pico PV systems employ 30 more time more people than kerosene Income generation The community in Nepal generates USD 400 per year from electricity and agro processing services from IWM/E In Benin, Solar Market Gardens farmed by women generated USD 40,000 from cultivating 27.7 tons of produce in

5 Socioeconomic Health benefits Economic Health Environm ental wellbeing education Prevention of diseases and malnutrition Almost 4.3 million people die every year from exposure to household air pollution Potential to reduce respiratory infection by 25% among children Polluted water consumption causes 4% of all deaths in rural areas Food losses as high as 40-50% for root crops, fruits and vegetables, 30% for cereals and fish, and 20% for oilseeds Prevention of accidents 76,000 jobs in the Global Alliance for Clean Cookstoves 8,493 IWMs has created employment for around 7,572 people Biogas programme in Nepal the total FTEs on an annual basis can be estimated to be 1,083 Health improvement through medical facilities In 2013, 15% and 43% of hospitals in Uganda and Sierra Leone respectively used PV to complement grid electricity access In Liberia, solar electrification surpassed that of other sources 5

6 Environmental benefits Socioeconomic Economic Health Environm ental Reduced deforestation and emissions Globally, 5 million solar pumps can save 10 billion litres of diesel, and nearly 26 million tonnes of CO 2 (equivalent to annual emission from 5.5 million vehicles) 50,000 solar pumps in Bangladesh saved 450 million litres of diesel and reduced emissions by a million tonnes of CO 2 per year (IDCOL, 2015). In Rajasthan, 4,500 solar pumps saved 3,482 kg of avoided CO 2 emissions and saved around 48 million cubic meter water per year wellbeing education Waste management Runs on animal manure and agriculture waste 9 biogas digesters in Vietnam can treat 8,500 tons of manure and avoid the emission of 2,200 tons of CO2 equivalent per year 6

7 wellbeing Economic Health Gender empowerment Solar Sister: over 2,198 women entrepreneurs Global Alliance for Clean Cookstoves: 76,000 women Grameen Shakti: almost 23,000 women technicians ENERGIA: strengthened 3,000 women in Africa and Asia Socioeconomic Environm ental wellbeing education Increased safety Lighting reduces the risk of safety hazards such as harassment, robberies and animal attacks Lighting increases the perceived dimension of safety, or reducing feeling uneasy after nightfall Improved quality of life Entertainment, comfort, etc. 40% of men spend extra time on leisure 19% of women spend time on leisure (35% on farm-related activities, 3% other income generating activities outside farm, 26% domestic responsibilities 16% on taking care of the children) 7

8 education Socioeconomic Economic Health Environm ental wellbeing education Increased school enrolment and performance 614 thousand solar lights in Africa is estimated to have enabled 765 million extra study hours for children in % of solar light users use the annual savings on kerosene, reported to be close to USD 70 per year, on school materials and tuition fees In Vietnam, school enrolment rose up to 11% for boys and a 4% for girls and the number of school years increased for the children of electrified households Increased knowledge in the sector General skills acquired that can contribute to reducing inefficiencies in production Increased adoption of new technologies, which further increase output 8

9 Energy along the agri-food chain 9

10 Primary production: Renewa bles-ba sed wa ter pumping Precipitation patterns are changing, climate resilience increasingly a major concern for the agriculture sector as demand continues to soar. 96% of cropland in Sub-Saharan Africa is rain-fed and around 60% in South Asia. Irrigation offers multiple benefits for agriculture: Greater productivity (almost 2x compared to rainfed agriculture) Opportunities for double or triple cropping practices Reduction in vulnerability to rainfall patterns Improvements in incomes, livelihoods and reduced hardship Energy is needed to pump water from the source to the field and water pumping is increasingly a major energy consumer. Global: Electric pumps for irrigation consume around 62 TWh per year India: Over 18% of total electricity and 5% of diesel consumption Bangladesh: 1500 MW electricity capacity, 1 million tonnes of diesel per year Access to energy remains a key inhibitor for expanding irrigation even where water resources are available.

11 Primary production: Renewa bles-ba sed wa ter pumping Renewables represent a technically-proven and cost-effective option for water pumping, with benefits for both farmers as well as governments. Farmers Reliable energy supply Improved crop yields and food security Increased incomes Climate resilience Additional benefits for health, education and poverty alleviation Local and national Reduction in electricity and fuel use Subsidy savings Reduced fuel imports Improved reliability of power system Increased agriculture economic output Emissions reduction Distributed solar solutions can reach different types of farmers (small-holder, commercial, subsistence) through diverse business and financing models.

12 Primary production: Renewa bles-ba sed wa ter pumping Benin 11 solar gardens, each 0.5 ha installed Each garden equipped HUMAN with solar DEVELOPMENT powered drip-irrigation system and farmed by a cooperative of ~30 women. Each woman farms one full plant bed, the produce from which she brings home, gives away, or sells. In the dry season, 27.7 metric tonnes of produce, valued at USD 40,000. Additional earnings and more reliable income flows The irrigation system provides a safety net, reducing their daily task to a weekly or bi-weekly activity. Benefits 3352 people directly and indirectly from high-quality produce Source: SELF/Robert Freling Weekly fee to a fund for the amortisation of the systems. 12

13 Primary production: Renewa bles-ba sed wa ter pumping Bangladesh Target of solar pumps by 2025 Building on the success of solar home system programme (nearly 4 million) Combination of equity (15%), grant (35%) and credit (50%) to finance pumps A total of 168 pumps are now operating, benefiting more than 3,500 farmers, with another 277 pumps projected for installation. Farmers usually break-even in 5 years, benefiting from reduced fuel expenditure and multiple cropping cycles HUMAN DEVELOPMENT Source: IDCOL Fee-for-service model Ownership model 13

14 Primary production: Renewa bles-ba sed wa ter pumping India The excess solar generation available will add generation capacity to the grid and can be a source of revenue of the farmer, thus encouraging farming and same time giving a solution for energy crisis Surya Raitha Scheme (State of Karnataka in India) 8 kwp pilot in Gujarat allowed to evacuate surplus power at INR 5 per unit (USD 0.078). In June 2015, the farmer received INR (USD 118) as compensation over a period of four months. If the same energy had been used to pump water, 8 million litres of groundwater would have been extracted. Purchasing surplus power from each individual farmer involves high transaction costs for the electricity utility. Six farmers formed cooperative society to sell surplus power generated from solar pumps (58 kw), signing agreement with the state DISCOM. Source: IWMI 14

15 Key messages Electricity is not the only application of decentralized renewable energy for productive uses Impacts are mostly observed where there is potential for economic activity with access to markets Private sector participation is critical. It needs to be allowed and facilitated An enabling environment based on effective policies and regulations, tailored financing models and technology solutions is necessary Frameworks for delivering affordable capital need to be developed to make financing more accessible to entrepreneurs and end-users Capacity Building efforts improve the sustainability of projects by reducing dependence on foreign know-how. Cross-sector integration is necessary to harness multiple development 15

16 Linkages between renewables and SDGs Achieving the Sustainable Development Goal on energy will transform the energy system while helping meet other SDGs Source: IRENA

17 The way forward Building the knowledge base on the socio-economic of renewable energy deployment Assessing cross-sector opportunities for renewable energy to achieve multiple development goals Developing state-of-the-art policy analysis on off-grid renewable energy deployment Providing international platforms to facilitate cross-regional exchange of best practices and lessons learnt

18 Thank you!

19 Link to the demo Thank you!

20 Primary production: Renewa bles-ba sed wa ter pumping Bangladesh HUMAN DEVELOPMENT 20