The Benefits And Risks Of Solar Powered Irrigation

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The benefits and risksof solar-powered irrigation- a global overviewbyHans Hartung,FAO Consultant,and Lucie Pluschke,Land & Water Officer,FAO Land and Water DivisionPublished bythe Food and Agriculture Organization of the United NationsandDeutsche Gesellschaft für Internationale Zusammenarbeit

The designations employed and the presentation of material in this informationproduct do not imply the expression of any opinion whatsoever on the part of theFood and Agriculture Organization of the United Nations (FAO), or of DeutscheGesellschaft fur Internationale Zusammenarbeit (GIZ) GmbH concerning the legalor development status of any country, territory, city or area or of its authorities, orconcerning the delimitation of its frontiers or boundaries. The mention of specificcompanies or products of manufacturers, whether or not these have beenpatented, does not imply that these have been endorsed or recommended byFAO, or GIZ in preference to others of a similar nature that are not mentioned.The views expressed in this information product are those of the author(s) and donot necessarily reflect the views or policies of FAO, or GIZ.ISBN 978-92-5-130479-2 (FAO) FAO, 2018FAO encourages the use, reproduction and dissemination of material in thisinformation product. Except where otherwise indicated, material may be copied,downloaded and printed for private study, research and teaching purposes, or foruse in non-commercial products or services, provided that appropriateacknowledgement of FAO as the source and copyright holder is given and thatFAO’s endorsement of users’ views, products or services is not implied in any way.All requests for translation and adaptation rights, and for resale and othercommercial use rights should be made via www.fao.org/contact-us/licence-requestor addressed to copyright@fao.org.FAO information products are available on the FAO website(www.fao.org/publications) and can be purchased through publications-sales@fao.org.This information product was funded by GIZ.

IIIAbout Powering Agriculture:An Energy Grand Challengefor Development (PAEGC)In 2012, the United States Agency for International Development (USAID), the Governmentof Sweden (SIDA), the Government of Germany (BMZ), Duke Energy Corporation and theUnited States Overseas Private Investment Corporation (OPIC (collectively, the “FoundingPartners”) combined resources to create the “Powering Agriculture: An Energy Grand Challengefor Development” (PAEGC) initiative.The objective of PAEGC is to support new and sustainableapproaches to accelerate the development and deployment of clean energy solutions to increaseagriculture productivity and/or value for farmers and agribusinesses in developing countries andemerging regions that lack access to reliable, affordable clean energy.PAEGC utilizes the financial and technical resources of its Founding Partners to support itsinnovator cohort’s implementation of clean energy technologies and business models that: (i)enhance agricultural yields/productivity; (ii) decrease post-harvest loss; (iii) improve farmer andagribusiness income-generating opportunities and revenues; and/or (iv) increase energy efficiencyand associated savings within the operations of farms and agribusinesses – while stimulating lowcarbon economic growth within the agriculture sector of developing countries and emergingregions.For more information, visit PoweringAg.org

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VContentsForewordIXAcknowledgementsXIAbbreviations and acronyms1 IntroductionXIII11.1 Background11.2 Growing interest in solar-powered irrigation solutions11.3 Methodology21.3.1Literature research21.3.2Online survey21.3.3Interviews42 The evolution of Solar Powered Irrigation Systems (SPIS)52.1 Brief history of solar water pumping52.2 Solar powered irrigation systems planning62.3 Solar-powered irrigation system configurations82.4 Cost of solar powered irrigation systems components(figures from mid-2017)92.5 Current trends and developments in solar powered irrigation systems92.5.1Innovations in technology and services2.5.2Future trends3 Current challenges913153.1 Advantages and disadvantages of solar-powered irrigation153.2 Economic viability of solar-powered irrigation183.3 Access to finance203.4 Istallation of the system, operation and maintenance223.5 Standardization and quality control of products and services253.6 Water management263.7 Social justice30

VI4 How different countries promote and manage solar-powered irrigation334.1 California: distributed generation354.2 India: solar-powered irrigation pioneer in Rajasthanand innovative solar cooperatives in Gujarat364.3 Kenya: focus on smallholders424.4 Mexico: groundwater governance454.5 Morocco: mitigating climate change464.6 Nepal: women farmers benefit from SPIS504.7 Senegal: solar pumps replacing diesel pumps525 Recommendations565.1 Research and development565.2 Capacity development585.3 Structural support606 References63

VIIList of tables, figures, boxesList of TablesTable 1Summary of SPIS configurations8Table 2Cost estimation for SPIS components, mid 20179Table 3Advantages of solar-powered irrigation16Table 4Disadvantages of solar-powered irrigation17Table 5Overview of advantages and disadvantages of solar-poweredand diesel-driven systems18Table 6Payback period for solar-powered irrigation pumpsunder different financial models19Table 7Selected country/state profiles34Table 8Return on investment (ROI) analysis of the farm of Lilian Akinyi44Table 9Existing financial models, advantages and disadvantages47Table 10Number of farms vs. plot size48Table 11Land distribution of the gardens in The Gambia55List of FiguresFigure 1Answers to the questionnaire received from the countries3Figure 2A solar-powered irrigation system near Bamako, Mali6Figure 3Potentials and challenges of solar water pumping7Figure 4SPIS data requirements for planning7Figure 5Inspecting the drip-irrigation system with a woman farmer (Nairobi)10Figure 6Floating solar system (Ulu Sepri - Malaysia)10Figure 7SPIS with electricity feed-in (Chile)13Figure 8Demonstration of various pumping systems (Rwanda)17Figure 9Elevated panels for a SPIS (Kenya)23Figure 10Experimental very simple portable SPIS (Cameroon)24

VIIIFigure 11Women installing panels for a SPIS system (Nepal)31Figure 12Members of the Dhundi Solar Cooperative40Figure 13Lilian Akinyi with her 0.75 acre of maize crop44Figure 14SPIS at Niumi Lamin55Figure 15Measuring solar irradiance in Melipilla (Chile)57Figure 16SPIS FAO workshop's participants (Rwanda)59List of BoxesBox 1Solar pumps in a nutshell14Box 2Groundwater governance29Box 3SPIS challenges in a nutshell32Box 4Energy cropping: diversifying incomesin Dhundi village in Gujarat39Box 5Solar energy at the heart of holistic soiland water management in Rajasthan41Box 6Solar water pump return on investmentat Homa Bay County, Kenya43Box 7Giving women loans to buy solar panelsfor irrigation and access to land can help thembuild resilience to climate change51Box 8Twelve solar pumps in market gardens in SenegalBox 9FAO SPIS experience on women vegetablegardens in The Gambia5453

IXForewordIn 2015, the Food and Agriculture Organization of the United Nations (FAO) and theDeutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH hosted an exploratoryworkshop to better understand the potential of solar-powered irrigation systems (SPIS) fordeveloping countries. During the workshop, representatives from nineteen countries sharedtheir experiences and knowledge of solar pumping technologies, covering large to small-scalesystems in tropical to arid climate zones, for vegetable gardens, orchards and livestock watering,using surface and groundwater.SPIS are nothing new. The first solar-powered pumps were installed in the late 1970s.Nevertheless, it was not until 2009 when the price of solar panels started to decreasedramatically, making solar technologies affordable for agricultural purposes. Since then, therehas been a race for the development of more powerful and efficient systems; every year, thereare larger pumps on the market that can withdraw water from greater depths. The marketpotential for both small-scale and large-scale systems is great. Prices continue to drop. TheInternational Renewable Energy Agency (IRENA) is projecting a 59 percent cost reduction forelectricity generated by solar PV by 2025 compared to 2015 prices.SPIS have many advantages, providing a clean alternative to fossil fuels and enabling thedevelopment of low-carbon irrigated agriculture. In areas with no or unreliable access toenergy, they contribute to rural electrification and reduce energy costs for irrigation. Thisimproves the access to water of many farmers and can have knock-on effects on agriculturalproductivity and incomes.Now in 2018, this report takes stock of the experiences with SPIS around the world. What arethe real costs and benefits of SPIS compared with other technologies? What rules, regulationsand policies are needed to manage the risks and realize the potential of such systems? Whatare viable business models? How can smallholders benefit? How can the risk of groundwaterdepletion be addressed effectively? How can SPIS help to empower women and promotegender equity? What types of capacity development programmes are needed to supportfarmers, extension workers, local private sectors and others? What are the opportunities forknowledge exchange and technology transfer?Nevertheless, there are also challenges with the uptake and use of SPIS that this reportexplores. It finds that access to finance, especially for small-scale farmers, as well as theaccessibility of good quality products and services remains an issue in many countries. Furthercapacity development activities are needed to ensure to users have a basic understanding ofset-up and functions of the system, and can take care of the daily operation and maintenance.In line with this, FAO and GIZ have also developed a Toolbox on Solar-Powered irrigationSystems for advisors.The report also stresses the importance of water resources assessments and planning to avoidincreasing pressures on water resources. By reducing costs, SPIS can improve people’s accessto water. Nevertheless, without incentive to moderate water consumption, there is a strongrisk of overexploitation, and even depletion of water resources. Coupling SPIS with efficientirrigation methods, such as drip irrigation, does not guarantee that water is saved. Water issimply reallocated to a greater area of land, more water-intensive crops, an additional cropping

Xseason, or to other uses. In some cases, water is sold to neighbours, generating an extra incomefor farmers and adding further pressure on water resources where they are scarce.This report looks at how different countries work to create an enabling environment for SPIStechnologies, while managing the risks and challenges that come with it. As such, it is a timelyreflection of past and future trends and clearly highlights the interlinked nature of water, energyand agriculture.Eduardo MansurDirectorLand and Water DivisionFood and Agriculture Organization of the United Nations (FAO)

XIAcknowledgementsSpecial thanks goes to Bernward Hollemann and Shilp Verma for their technical guidancethroughout the research and writing process. We are also grateful to John DeMarco, KatharinaMeder, Macben Makenzi, Joseph Achoka, Susan Wambui, Caroline Ndegwa, Yibetal Tiruneh,Amare Haileselassie, Aditi Mukherji, Octavio Montufar, Salome Mumba, Enrique Playán, SaboorAbdul Jawad, Samir Ibrahim, Aliou Bamba, Wu Bingfang, Stephan Grinzinger, Markus Hagenah,Kai Reinecke, Klaus Goldnick, Felix Leyva Fillad, Dustin Mulvaney, Reinhold Schmidt, RajendraBir Joshi, Taoufik el Rasafi, Henk Holtslag, Andre Mergenthaler, Urs Heierli and Elena LopezGunn for sharing their experiences. We thank Maria Weitz, Robert Schultz, Kerstin Lohr,Stefan Eibisch, Florent Eveille and Jippe Hoogeveen for their advice, revision and support ofthis report, and also James Morgan and Lucia Moro for publications coordination and layout.The report was funded by the Deutsche Gesellschaft für Internationale Zusammenarbeit(GIZ) GmbH on behalf of the German Federal Ministry for Economic Cooperation andDevelopment as a contribution to the initiative Powering Agriculture: An Energy GrandChallenge for Development (PAEGC).

XIIIAbbreviations and acronymsACAlternating CurrentBMZFederal Ministry of Economic Cooperation and Development,Government of GermanyCAMCrédit Agricole du MarocCONAGUANational Water Commission of MexicoCOTATechnical Committee for Groundwater, MexicoCTATechnical Centre for Agricultural and Rural Cooperation,Wageningen, The NetherlandsCWACCalifornia Water Action CooperativeDCDirect CurrentDGPREGovernment Department for the Planning of WaterResources, SenegalEMPEnvironmental management planESCOEnergy Services CompanyEUEuropean UnionFAOFood and Agricultural Organization of the United NationsFBRFachvereinigung Betriebs- und RegenwassernutzungFITFeed-In TariffGDPGross Domestic ProductGEFGlobal Environment FacilityGHGGreenhouse GasGIEGroupement d'intérêt économique, economic interest groupGIZDeutsche Gesellschaft für Internationale ZusammenarbeitGWgigaWatt

XIVhahectarehphorsepowerICIMODInternational Centre for IntegratedMountain DevelopmentIDCOLInfrastructure Development Company Limited,BangladeshInt.InternationalINRIndian RupeesIREDAIndian Renewable Energy Development AgencyIRENAThe International Renewable Energy AgencyIRRInternal Rate of ReturnITCInvestment Tax Credit, USIWMIInternational Water Management InstituteIWRMIntegrated Water Resources ManagementKESKenyan shillingKSSIKenya Smallholder Solar IrrigationkWkiloWattkWhkiloWatt hourkWpkiloWatt peakLAERFTERenewable Energy Law, Mexicom meterMADMoroccan dirhamMASENMoroccan Agency for Sustainable EnergyMPPTMaximum Power Point TrackingMUSMultiple Use SystemMWMegaWatt

XVNABARDNational Bank for Agriculture and RuralDevelopment, IndiaNDMANational Drought Management Authority, KenyaNGONon-governmental organizationNRREPNational Rural and Renewable Energy ProgrammeO&MOperation & MaintenanceOPICUnited States Overseas Private Investment CorporationPAEGCPowering Agriculture: An Energy Grand Challengefor DevelopmentPNEEIProgramme National d’Economie d’Eau d’Irrigation(Morocco)PVPhotovoltaicPVCPolyvinyl ChlorideREAPRural Energy for America Program, USRETRenewable Energy TechnologyROIReturn on InvestmentRPORenewable Purchase ObligationSAGARPASecretariat of Agriculture, Livestock, Rural Development,Fisheries and Food, Mexico’s Agriculture MinistrySCARDBState Cooperative Agricultural Rural Development BankSDGSustainable Development GoalsSGMASustainable Groundwater Management Act, USSIDASwedish International Development Cooperation AgencySELSustainable Energy Lab, Columbia University (US)SolarGeneratorA collection of solar panels (or PV panels), wired in seriesor parallel, arranged to power a solar pump systemSPaRCSolar Power as Remunerative CropSPICESolar Pump Irrigators’ Cooperative Enterprise, India

XVISPISSolar Powered Irrigation SystemsSWPSolar water pumpTAWSTufanganj Anwesha Welfare Society (Indian NGO)UNDPUnited Nations Development ProgrammeUSAIDUnited States Agency for International DevelopmentUSDAUnited States Department of AgricultureV VoltWaPOR(FAO) Water Productivity Open-access Portal

1. Introduction1. Introduction1.1 BACKGROUNDAgriculture is the single largest employer in the world, sustaining the livelihoods of 40 percentof the world’s population, many of whom continue to live in poverty (United Nations, 2015).Irrigation is among the measures that can improve yields, reduce vulnerability to changingrainfall patterns and enable multiple cropping practices (FAO, 2011). As such, irrigation is oftenseen as the engine that helps to ensure food security, generates incomes, provides jobs anddrives rural development. Energy is a key input for irrigation services.As investment costs for solar powered irrigation systems (SPIS) are coming down and subsidyschemes for SPIS are being rolled out, solar technologies are becoming a viable option forboth large and small-scale farmers. SPIS provide reliable and affordable energy, potentiallyreducing energy costs for irrigation. In rural areas where diesel fuel is expensive or wherereliable access to the electricity grid is lacking, they can provide a relatively flexible and climatefriendly alternative energy source. SPIS can be used in large-scale irrigation systems as well asfor decentralized, small-scale irrigation.Some countries are promoting SPIS in the framework of national action plans regarding climatechange as a way to reduce emissions from agriculture. The operation of solar pumps does notproduce any greenhouse gas (GHG) emissions. Life cycle assessments of SPIS, accounting foremissions in a cradle-to-grave scenario, indicate a potential reduction in GHG emissions perunit of energy used for water pumping (CO2-eq/kWh) of 95 to 97 percent as compared withpumps operated with grid electricity (global average energy mix) and 97 to 98 percent ascompared with diesel pumps (GIZ, 2016).Nevertheless, it is important to note that SPIS – if not adequately managed and regulated –bear the risk of supporting unsustainable water use. Once the systems are installed, there is nocost per unit of power and thus no financial incentive for farmers to save on fuel or electricityfor water pumping. This can lead to wasteful water use, over-abstraction of groundwater, andlow field application efficiency. In some cases, farmers sell water to their neighbours at a profit,increasing the overall water withdrawals. Recognizing the water-related risks and addressingthose from the beginning – especially in the financing and design stages – will be crucial toensure the sustainable use of SPIS technology.In light of the rapid expansion of SPIS, there is an opportunity to not simply introduce aclean, climate-smart and innovative energy technology, but to think strategically about howthis technology can be used to encourage more sustainable use of groundwater resources,to create more inclusive finance and management structures and to foster more integratedthinking about solutions around the water-energy-food nexus.1.2 GROWING INTEREST IN SOLAR POWERED IRRIGATION SOLUTIONSThere is a growing interest in solar-powered irrigation solutions around the world, noticeablein the increasingly frequent requests from agricultural institutions in developing countries forinstallation, finance and training. In May 2015, the Food and Agriculture Organization of the1

2The benefits and risks of solar-powered irrigation - A global overviewUnited Nations (FAO) and the Deutsche Gesellschaft für Internationale Zusammenarbeit(GIZ) GmbH hosted an exploratory workshop to better understand the potential of SPISfor developing countries. Representatives from 19 countries shared their experiences withsolar pumping technologies – from large to small-scale, from tropical to arid climate zones, forvegetable gardens, orchards and livestock watering, using surface and groundwater.It became clear that there was a need to synthesize these experiences and to respond tothe issues, questions and needs that were raised during the workshop. What are the realcosts and benefits of SPIS compared with other technologies? What rules, regulations andpolicies are needed to manage the risks and realize the potential of SPIS? What are viablebusiness models for SPIS? How can smallholders benefit from SPIS technology? How canthe risk of groundwater depletion be addressed effectively? How can SPIS help to empowerwomen and promote gender equity? What types of capacity development programmes areneeded to support farmers, extension workers, local private sectors and others? What are theopportunities for knowledge exchange and technology transfer?FAO and GIZ decided to follow up on these questions with a global project that is part of the“Pow

2.4 Cost of solar powered irrigation systems components (figures from mid-2017) 9 2.5 Current trends and developments in solar powered irrigation systems 9 2.5.1 Innovations in technology and services 9 2.5.2 Future trends 13 3 Current challenges 15 3.1 Advantages and disadvantages of solar-powered irrigation 15

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