Studies

Environmental and Economic Impacts of Agrivoltaics in Bangladesh

This study examines the environmental and economic implications of agrivoltaicsthe practice of cultivating crops under solar panelsas an alternative to tackle the challenges of reconciling renewable energy objectives with limited land availability in Bangladesh. 

Researchers: Rohini Kamal, PhD; Mohammad Tofail Bin Azam  

Partner: International Growth Centre (IGC)

Timeline: 2022–2024

Status: Completed

Contact: Md. Tofail bin Azam; azam.mohammad@bracu.ac.bd 

Context

The study encompasses the direct and upstream effects on factors such as employment, land use, water resources, greenhouse gas emissions, and co-pollutants. Employing an input-output model, the research compares agrivoltaics with various power sources including coal, gas, oil, hydropower, nuclear, and traditional solar energy. A novel feature of the study is its consideration of the land-impacted rather than just land-used aspect of different power sources, which holds the potential to provide crucial insights. By integrating economic, environmental, and climate-related goals, the research challenges conventional views on fossil fuels’ land-use efficiency and employment generation. It presents a holistic approach applicable to developing countries like Bangladesh and envisions real-world implementation, enhancing policy decisions for wider agrivoltaic adoption.

Objectives

The study will demonstrate how one of Bangladesh’s key constraints in achieving its renewable goals can be eased. The economy-wide impact on land, employment, water and emissions of agrivoltaics address both climate change and environmental concerns. The project wishes to amend the existing land use policy of Bangladesh that bans agricultural land use for solar parks. Through the findings, the study also aims to encourage new policies which incentivise farmers and solar providers to take up agrivoltaics, so that the renewable energy targets of Bangladesh can be achieved.

Methodology

This research will estimate the economy wide impact of agrivoltaics compared to other energy options available in Bangladesh, namely, coal, gas, oil, hydropower, nuclear, and solar. We will assess not just the direct impacts of the power plants themselves but also the upstream, economy-wide impacts generated from power plants, on the following factors: employment, land, water, greenhouse gas emissions, and co-pollutants.

Findings

  • The research indicates that agrivoltaics will have a positive impact on the creation of low-skilled and medium-skilled jobs and is expected to yield the smallest gender employment gap compared to other energy sources
  • Agrivoltaics is projected to require less land for energy generation as compared to fossil fuel, offering a more sustainable and land-efficient approach.


Recommendations

This policy brief highlights the potential alternative to fossil fuel is setting up agrivoltaic systems in less fertile and single-cropped land to achieve the 40% renewable energy target of the government of Bangladesh by 2041 without hindering agricultural production and livelihood of people engaged in agriculture. The methodology used encapsulates key considerations within the food–energy–environment nexus and provides policymakers a framework that clearly presents the implications of energy choices. The next step is a proof of concept to assess the impact of variation in crops, soil quality, land leasing terms between solar producers and farmers, in terms of the business model of the two entities.

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