CO2-Free Agriculture for the Mediterranean region

Introduction

The CO2-FrAMed project will build approximately 12 stand-alone large-power photovoltaic irrigation systems (PVI) that do not require back-up batteries and significantly reduce risks related to the integrity of the water distribution infrastructure. This solution is a suitable alternative to conventional electric and diesel-based pumping systems. It brings environmental benefits in terms of CO2 emission reduction and economic benefits in terms of lower costs for farmers. Overall, the project will reduce reference emissions by 100% and farmers will benefit from zero-carbon irrigation at a competitive price.

Innovation in the Technology and in the Way to Finance It

The project’s innovative elements are threefold: a new technology, an advanced monitoring system, and an innovative financing model.

1. PVI Technology: The PVI technology was developed within Horizon 2020 to solve the intermittency problem of photovoltaic power sources. Intermittency can cause overvoltage and water hammers, which can seriously damage the irrigation infrastructure and dramatically reduce its lifetime. The PVI technology allows for the integration of the hydraulic components, the PV generators, and the frequency converters, and it guarantees that the pressure remains always within optimal operational values. Such a solution avoids the need to use expensive backup batteries.

2. Advanced Monitoring System: The advanced monitoring and automated analysis of key system parameters is a breakthrough in the farming sector, also enabling fault detection, diagnosis, and reporting for high performance of the large-power PVI systems.

3. Innovative Business Model: The innovative business model proposed for the project builds on the work of the H2020 ResFarm project, which developed a framework to ease the access of on-farm renewable energy sources to capital market funding. The business model of CO2-FrAMed is based on the commercialization of PV electricity through a pool of power purchase agreements (PPAs) totaling 7.35 MW capacity. The model also enables the reduction of financing costs of the PVI projects by showing that they qualify as collateral for high-quality financial instruments (green bonds).

Multiple Technical, Environmental, and Economic Benefits for the Farmers

The project will deploy zero-carbon irrigation systems, avoiding 17,700 tCO2e during the first 10 years of operation, which corresponds to 100% of the reference emission, while also tackling many of the technical, economic, and administrative challenges faced by farmers.

The project aims to demonstrate that PVIs are well suited for medium-large irrigation applications. They can replace conventional electric (grid connected or using batteries as back-up) and diesel-based pumping systems and can work as stand-alone installations without the need for batteries or a connection to the grid.

The introduction of advanced monitoring and analysis features will ensure optimal performance, minimize operational expenses, and reduce the cost of the electricity paid by the farmers. The project will also have a positive impact on the circular economy by reducing the consumption of water in the farming sector by up to 30% without increasing GHG emissions.

The pooled PPA approach significantly reduces financial and transaction costs for the PVI installations and prevents Operations & Maintenance costs and burdens from falling on farmers. In addition, the project will have a significant impact on agricultural activities in the region, contributing to a substantial increase in agricultural production.

High Scale-Up Potential in the Irrigation Sector Worldwide

The potential for expanding the project on-site and transferring the technology to other sites with similar conditions is very high. The availability of a cost-effective 100% renewable and independent energy solution for irrigation systems opens sizeable opportunities worldwide, particularly in locations lacking a reliable electric grid.

The introduction of concepts and practices from the securitization industry into the