Opportunities for Agri-Food Chains to Become Energy-Smart
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Opportunities For Agri-Food Chains To Become Energy-Smart R. SIMS, A. FLAMMINI, M. PURI, S. BRACCO NOVEMBER 2015 ISBN 978-92-5-108959-0 The designations employed and the presentation of material in this information product do not imply the expression of any opinion whatsoever on the part of the Food and Agriculture Organization of the United Nations (FAO), or of the PAEGC Founding Partners concerning the legal or development status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. The mention of specific companies or products of manufacturers, whether or not these have been patented, does not imply that these have been endorsed or recommended by FAO, or the PAEGC Founding Partners in preference to others of a similar nature that are not mentioned. 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FAO information products are available on the FAO website (www.fao.org/ publications) and can be purchased through [email protected]” © FAO and USAID, 2015 Opportunities For Agri-Food Chains To Become Energy-Smart R. SIMS, A. FLAMMINI, M. PURI, S. BRACCO NOVEMBER 2015 ABOUT PAEGC In 2012, The United States Agency for International Development (USAID), the Government of Sweden (SIDA), the Government of Germany (BMZ), Duke Energy Corporation, and the United States Overseas Private Investment Corporation (OPIC) (collectively, the “Founding Partners”) combined resources to create the Powering Agriculture: An Energy Grand Challenge for Development (PAEGC) initiative. The objective of PAEGC is to support new and sustainable approaches to accelerate the development and deployment of clean energy solutions for increasing agriculture productivity and/or value for farmers and agribusinesses in developing countries and emerging regions that lack access to reliable, affordable clean energy. PAEGC utilizes the financial and technical resources of its Founding Partners to support its innovator cohort’s implementation of clean energy technologies and business models that: (i) Enhance agricultural yields/productivity; (ii) Decrease post-harvest loss; (iii) Improve farmer and agribusiness income generating opportunities and revenues; and/or (iv) Increase energy efficiency and associated savings within the operations of farms and agribusinesses - while stimulating low carbon economic growth within the agriculture sector of developing countries and emerging regions. For more information, visit PoweringAg.org IV OPPORTUNITIES FOR AGRI-FOOD CHAINS TO BECOME ENERGY-SMART TABLE OF CONTENTS Foreword .............................................................................................................................................................................................vii Preface ............................................................................................................................................................................................viii Acknowledgements ...................................................................................................................................................................................ix Abbreviations ...............................................................................................................................................................................................x Executive summary ....................................................................................................................................................................................1 1 Clean energy solutions and rural development............................................................................................................19 1.1 Aims and objectives .............................................................................................................................................................21 1.2 Scope of the study ...............................................................................................................................................................22 1.3 Case studies .............................................................................................................................................................................25 2 Energy and the food value chain ...........................................................................................................................................27 2.1 Value chain approach .........................................................................................................................................................28 2.1.1 Agri-food energy input trends ........................................................................................................................29 2.1.2 Energy in food losses and waste ...................................................................................................................33 2.1.3 Scale of enterprise ..................................................................................................................................................35 2.1.4 Access to energy .....................................................................................................................................................36 2.1.5 Cleaner value-chains .............................................................................................................................................37 2.2 Energy demand and supply technologies............................................................................................................... 41 2.3 Behavior and demand side management ............................................................................................................... 43 2.4 Cross-cutting low-carbon and energy demand efficiency options ........................................................45 2.4.1 Conservation agriculture ....................................................................................................................................46 2.4.2 Water pumping and irrigation .........................................................................................................................47 2.4.3 Heating ...........................................................................................................................................................................51 2.4.4 Cooling and cold storage ...................................................................................................................................54 2.4.5 Tractors and machinery ......................................................................................................................................57 2.4.6 Fertilizers and agri-chemicals ........................................................................................................................... 59 2.4.7 Transport and distribution of goods ............................................................................................................61 2.4.8 Processing and packaging ...................................................................................................................................62 2.4.9 Use of information technology .......................................................................................................................66 2.5 Renewable energy supply options for, and from, the agri-food chain .................................................68 2.5.1 Renewable energy technologies ....................................................................................................................69 2.5.2 Bioenergy .....................................................................................................................................................................69 2.5.3 Wind power ...............................................................................................................................................................73 2.5.4 Solar photovoltaics ................................................................................................................................................. 74 2.5.5 Small and mini-hydro power ............................................................................................................................75 2.5.6 Current use of renewable energy in the agri-food chain ............................................................... 76 2.5.7 Mitigation and climate change impacts ......................................................................................................78 2.5.8 Economic assessment ...........................................................................................................................................79