Economic Feasibility of Agrivoltaic Systems in Food-Energy Nexus Context: Modelling and a Case Study in Niger

Author:

Neupane Bhandari Srijana,Schlüter Sabine,Kuckshinrichs WilhelmORCID,Schlör Holger,Adamou Rabani,Bhandari RamchandraORCID

Abstract

In the literature, many studies outline the advantages of agrivoltaic (APV) systems from different viewpoints: optimized land use, productivity gain in both the energy and water sector, economic benefits, etc. A holistic analysis of an APV system is needed to understand its full advantages. For this purpose, a case study farm size of 0.15 ha has been chosen as a reference farm at a village in Niger, West Africa. Altogether four farming cases are considered. They are traditional rain-fed, irrigated with diesel-powered pumps, irrigated with solar pumps, and the APV system. The APV system is further analyzed under two scenarios: benefits to investors and combined benefits to investors and farmers. An economic feasibility analysis model is developed. Different economic indicators are used to present the results: gross margin, farm profit, benefit-cost ratio, and net present value (NPV). All the economic indicators obtained for the solar-powered irrigation system were positive, whereas all those for the diesel-powered system were negative. Additionally, the diesel system will emit annually about 4005 kg CO2 to irrigate the chosen reference farm. The land equivalent ratio (LER) was obtained at 1.33 and 1.13 for two cases of shading-induced yield loss excluded and included, respectively.

Funder

Bundesministerium für Bildung und Forschung

Publisher

MDPI AG

Subject

Agronomy and Crop Science

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