FIGURE 3 - uploaded by Miriam Otoo
Content may be subject to copyright.
Source publication
This report outlines a business model approach to assessing the feasibility and for encouraging investment in smallholder solar pump irrigation. It also proposes a new methodology for mapping the suitability of solar energy-based irrigation pumps. The proposed business model framework and the methodology for suitability mapping are applied to Ethio...
Context in source publication
Context 1
... general. there is only limited information available to enable a comprehensive assessment of the solar pump market in Ethiopia, although key actors are identified as suppliers (importers), retailers, installers and regulatory institutions, with little to no manufacturing being done domestically (see Figure 3 and Annex 5 for the list of identified market chain actors as of January 2017). ...
Similar publications
Irrigation enhances agricultural production, improves the food supply and income of rural population in Ethiopia. From this important viewpoint irrigation projects were widely studied, planned and implemented throughout the country. However, little or no attention was given to the monitoring and evaluation of the performance of already established...
Citations
... Several financial investment and business models offer different options for solar irrigation, such as the ones practiced for small-holder solar pump-based irrigation in Ethiopia [26], in sub-Saharan Africa [27], and in other developing countries across the Middle East, North Africa, and Southeast Asia [28]. When farmers unite in using solar irrigation as a group-based system like the ones established by the Department of Agriculture in Occidental Mindoro and other agricultural provinces, they can finance and cover the initial capital investment of the solar irrigation system. ...
Solar irrigation systems are sustainable practices that can improve the well-being of local communities and enhance the resilience of agriculture to climate change while reducing environmental impacts. Due to its high investment cost, small-scale farmers are inclined to use traditional fossil-based irrigation systems that can harm humans and the environment. This study aims to analyze the environmental impacts, economic feasibility, and social acceptability of shifting agricultural practices from diesel-fueled to solar irrigation systems. Taking the perspective of small-scale farmers from Calapan City, Oriental Mindoro, results found that solar irrigation system has a higher initial investment but lower maintenance and operational costs. These resulted in an attractive economic feasibility of the project with Php 19,693 of fuel cost savings per hectare per year, a project net present value of Php 10,214 per hectare, a payback period of 8.27 years, and returns on investment at 110%. Additionally, shifting to a solar irrigation system significantly reduces the greenhouse gas emissions from diesel at 199.78 CO2 eq/ha/yr, and avoids air pollutant emissions at 14.91 g/ha/yr particulate matter, 2.98 g/ha/yr nitrogen oxides,193.82 g/ha/yr sulfur oxides, and 149.09 g/ha/yr carbon monoxide. Despite the lack of in-depth environmental awareness, small-scale farmers are interested in investing in solar irrigation systems with 68% social acceptability. Results provide bases for recommendations on promoting more human ecologically and sustainable agriculture irrigation systems in the Philippines and other developing countries.
... This is compounded by a lack of collateral assets and viable business plans of many smallholder farming operations [33]. While irrigation of high-value crops using SIPs is proven to be financially viable depending on water source and system capacity [58], most irrigation development supported by the public sector continues to promote low-value staple crops. Hence, even when credit is extended, loan repayment is difficult given the low surplus generated by farmers due to low-value crops and low productivity [34]. ...
Irrigation expansion is critical for agricultural and rural development, food and nutrition security, and climate change adaptation in Sub-Saharan Africa (SSA). Lack of accessible energy for irrigation development due to limited off- and on-grid infrastructure and the resulting dependence on costly fuel-based irrigation have been key inhibiting factors for irrigation expansion in the region. Off-grid solar-powered irrigation pumps (SIPs) can overcome many of the energy access and other challenges in the region, but their uptake has been slow. Given the nascent development of the solar irrigation sector in SSA, this paper combines a review of the peer-reviewed and grey literature with key informant interviews to identify systemic barriers to the adoption and growth of solar-powered irrigation. We identify uncovered risks, lack of incentives, and lack of capacity as the key factors limiting the adoption of solar-powered irrigation. Moreover, despite significant global cost reductions, solar-powered irrigation systems remain costly in SSA due to limited market development and geographical constraints. Lack of regulation and low investment in building local institutions and value chains further affect uptake and inhibit leveraging the energy transition for ensuring food security and agriculture-led poverty alleviation in SSA. We propose a move away from thinking of SIPs as “silver bullets” and towards a systems approach and the design of context-specific solutions to address risks, incentives and capacity challenges.
... Introduction Solar irrigation pumps (SIPs) were first developed in the late 1970s (Chandel et al., 2015), yet it was only in the 2010s that the use of this innovation picked up and its full potential for the energy transition in the agricultural sector became evident. Improved technology and lower costs, particularly in photovoltaic (PV) panels, have been the main drivers of solar irrigation system development (Agrawal & Jain, 2019;Otoo et al., 2018;Shirsath et al., 2020;Hartung & Pluschke, 2018). Since then, and in parallel with the reduction in costs, irrigation using PVpowered systems has gained momentum as a climate-smart technology promoted by development partners and the research community (Lefore et al., 2021). ...
The transition to solar-powered irrigation in South Asia offers an opportunity to cut greenhouse gas emissions and reduce dependency on expensive diesel. However, appropriate institutional and financial models are required to scale up this technology. Three different solar irrigation pump (SIP) implementation modalities coexist in Bangladesh, providing a good opportunity to evaluate and gain insightful knowledge on the solarization process. These conclusions are also applicable to neighbouring countries dealing with comparable problems. The three models are i) Community-managed SIP model, ii) Individual ownership model, and iii) Fee-for-service model. In this article, we argue that the fee-for-service model involving a market-based approach and public-private partnership is the most promising in terms of addressing two main challenges in solarization, i.e., high capex financing requirement and generation of sufficient demand. In terms of achieving equity in SIP access and groundwater sustainability, all three models have their respective pros and cons. However, the financial sustainability of SIPs is under threat due to the significant project costs. It is imperative to expedite the integration of SIPs with the national power grid while implementing supportive government policies. This includes enhancing buy-back tariffs and introducing net-metering options to ensure long-term sustainability.
... Among Indian rural farmers in Andhra Pradesh, Bihar, Haryana, Gujarat, Rajasthan, and West Bengal, solar-powered irrigation has been incooperated [79][80][81][82][83][84][85]. Similar initiatives have also been recorded in African countries such as Algeria [86], Kenya [87], Uganda [88], Nigeria [89], Sudan [90], Ghana, Mali, and Ethiopia [91][92][93]. ...
... While renewable energy-powered irrigation technologies are promising, they also have some drawbacks. In Northern Africa, for instance, electricity and diesel converters used for irrigation have received subsidies, which has encouraged exorbitant groundwater extraction [91,96]. A similar danger looms with solar technology, specifically as it " democratizes energy" and thus provides a steady stream of cheap power, which could facilitate excessive groundwater abstraction [98,99]. ...
This review was sought to comparatively explore how irrigation technological interven-9 tions could help to overcome water security challenges in India and Africa. Retrieved literature in-10 dicated that as part of the global south, India and Africa have an untapped irrigation potential due 11 to adoption of individual-centric irrigation. Unlike in India where over extraction is the primary 12 driver of water scarcity (physical scarcity), water insecurity in Africa results from poor management 13 (economic scarcity). This study indicates that both Indian and African governments ought to offer 14 stimulus packages that encourage holistic farmer-centric intervention irrigation technologies to im-15 prove food and water security.
... Ethiopia has concrete plans for irrigation development to enhance sustainable intensification, increase and sustain productivity, and cushion households against droughts and climate variability and change (FDRE 2010;NPC 2016). IWMI's solar irrigation suitability maps (Otoo et al. 2018) and the shallow-groundwater mapping of the Agricultural Transformation Agency (ATA) provide valuable inputs for smallholder irrigation development (ATA 2020). ATA estimates show that Ethiopia has 11 million ha suitable for irrigation, of which 48% could be irrigated using groundwater. ...
... ATA estimates show that Ethiopia has 11 million ha suitable for irrigation, of which 48% could be irrigated using groundwater. Groundwater beyond a suction depth of seven meters constitutes the largest potential area for solar irrigation development in Ethiopia (Otoo et al. 2018). ...
This technical report provides an overview of marketing margin of irrigation technologies in Ethiopia with an analysis from a supply chain perspective
... This paper aims to connect aQysta's BP-related experience to other studies on these limitations within SF contexts. Several researchers have studied BM frameworks to deliver value more effectively to SFs (CGIAR, 2017), the creation of business cases for SFs through BM innovation (Bolwig et al., 2020;Gebrezgabher et al., 2021;Otoo et al., 2018), and the SBM structures of companies engaging commercially with SFs (Doherty & Kittipanya-Ngam, 2021). ...
Smallholder farmers (SFs) are cornerstone actors in eradicating poverty and hunger. Companies have recently focused on SFs as potential customers and suppliers. Several hindrances yet prevent SFs to be commercially viable actors. In this respect, sustainable business models (SBMs) bring opportunities for companies to increase profit, improve SFs' livelihoods, and promote environmental sustainability. Recognizing these opportunities, the Dutch company aQysta provides the Barsha pump (BP) as a sustainable irrigation solution for SFs. The challenges for BP adoption that remain for SFs illustrate that there is still limited understanding of how SBMs can support companies in engaging with SFs. To expand this understanding, we conducted a multiple-case analysis of 10 organizations providing SF-tailored products and/or services. Based on this analysis, we have drawn lessons for aQysta (and similar companies) to improve the BP's value proposition and we elaborate on the implications of this study for other organizations engaging commercially with SFs.
... Multilateral organizations, such as the African Development Bank, the Green Climate Fund, and the World Bank, as well as international aid agencies (mainly from OECD countries), were key sources of finance for irrigation projects through which drip-irrigation technology is demonstrated and disseminated (GoK, 2013b;GoM, 2013b). While the efficiency of small-scale irrigation schemes and drip-irrigation projects in SSA has often been questioned (Kulecho & Weatherhead, 2005;Pittock et al., 2020;Venot et al., 2017;Wanvoeke et al., 2017), it is also evident that the demand for irrigation technologies has depended on these government and donor projects (Hornum & Bolwig, 2021;Otoo et al., 2018). In the past, international aid organizations have mainly supported irrigation schemes through centralized governance structures, characterized by a high level of control over irrigation and cropping schedules (Higginbottom et al., 2021). ...
... Ethiopian has recently assessed that around 11 mega hectares is appropriate for irrigation, with groundwater accounting for 48% of the total. According to the compatibility maps and current land use data, 18% (3.74 million ha) of Ethiopia irrigated rain-fed land would be appropriate for a solar photovoltaic watering system (Otoo et al., 2018). ...
We published the new issue (2023, Volume 4, Issue 1) of Turkish Journal of Agricultural Engineering Research (TURKAGER), of which I am the owner and editor, with great devotion. For the issue file and articles, please visit https://dergipark.org.tr/tr/pub/turkager/issue/78374. Click on the link and check it out.
... Institutions such as the ATI, and research for development projects including Africa Research in Sustainable Intensification for the Next Generation (Africa RISING) and ILSSI have been actively working to promote solar-based irrigation in different parts of the country. It is necessary to bundle packaged approaches and recommend innovations and solutions to support the development of solar irrigation in Ethiopia, including market-led approaches and financing mechanisms along with solar pumps, and technical services (Otoo et al. 2018;GIZ 2020). ...
Scaling small-scale irrigation (SSI) is critical in alleviating poverty and achieving Sustainable Development Goals in Ethiopia. There are several pathways to scaling SSI. Among these, the adaptive scaling approach has proven suitable for facilitating the private-led pathway and partnerships for scaling irrigation technologies and services, including solar-based irrigation bundles (SBIBs). Yet, operationalizing the adaptive scaling approach at a larger scale requires further action research to develop the tools to facilitate demand and supply linkages, de-risking the private sector investment in the SSI market. Addressing this need, this study develops a demand segmentation tool and applies it to the case of solar-based irrigation bundles in Ethiopia. It aims to understand and identify the different farmer segments, their resources, potentials, and preferences to better match demand and supply. The segmentation was done in Ziway and Wereta woredas by applying participatory action research based on land and water access, arrangement for irrigation and production, financial capital and potential, and technology and service preferences. Data was collected in September 2022 using semi-structured interviews, focus group discussions, and stakeholder consultation workshops, involving farmers/farmer groups, government and non-governmental institutions, financial institutions, irrigation equipment suppliers and service providers, and output market actors. Four segments include resource-rich farmers, resource-limited farmers, project-pilot beneficiaries, and organized irrigators. These segments have different needs and resources to invest in SBIBs. Challenges to investment in and scaling SBIBs relate to natural, financial, and human capital and the suitability of the available solar pump technologies to farmer needs, expectations, and contextual and value chain dynamics. Gaps in sales and distribution networks at local levels and limited availability of solar technology options in local markets are observed from the supply side. Also, government subsidies and credit-based financing for motor pumps may create a biased business environment and competition for Solar Powered Irrigation Pumps (SBIBs). Innovative approaches to link private and other value chain actors and services are needed to create opportunities for the private sector to lead the market. These include developing effective mechanisms for linking organized and resource-rich irrigators with water-lifting service providers, technology suppliers, and financing institutes. Collective loans for resource-limited farmers and organized irrigators will enable investment in higher-capacity solar-powered irrigation pumps and deep wells for both user segments. Local sales agents/distributors should network with extension agents to connect technology supply with different farmer segments, facilitating an efficient information flow and building trust and credibility on the farmers' side. Furthermore, suppliers should diversify the SBIBs in the market regarding capacity, multiple uses, solar energy storage, and mobility. Another opportunity is the availability of on-farm water storage and efficient irrigation methods that can address farmers' concerns about the performance of solar-based irrigation. The inclusion of SBIBs in the government's policies and programs for irrigation development should be fostered. 3
... Ethiopian has recently assessed that around 11 mega hectares is appropriate for irrigation, with groundwater accounting for 48% of the total. According to the compatibility maps and current land use data, 18% (3.74 million ha) of Ethiopia irrigated rain-fed land would be appropriate for a solar photovoltaic watering system (Otoo et al., 2018). ...
Diesel pumps have extensively used for irrigation water pumping. However, this causes challenges both in terms of economic factors (fuel costs) and environmental impacts (emits air pollution). An alternative solution is using renewable energy sources. In this regard, a battery less solar PV energy system was designed and evaluated was designed and evaluated for the geographic location and metrological data of Dugda woreda, representing the central rift valley of Ethiopia. Performance testing were conducted on sunny days of April month and with time intervals of from 9:00 am to 5:00 pm, again the respective solar radiation ranges between 385.8 to 862.2 W m^(-2) h^(-1). The solar photovoltaic pumping has been evaluated with the head levels of 10, 12, 15, and 18 m. Accordingly the result showed that, PV system size can irrigate a tomato field of 0.33-0.75 ha with a mean daily water use of 8.7 and 17.4 m^3 〖day〗^(-1) at head levels of 10 and 18 meters, respectively. After evaluation, the maximum water flow rate has been at the midday day from 12:00 am to 1:00 pm. Comparative economic evaluation of the solar-powered water pump system and diesel pump devices were done using cycle cost breakdown and the cost of water per unit volume. Thus the long term economics of water pumping using solar photovoltaic and diesel pumping systems showed a cost of 1.33 〖ETB m〗^(-3) and 3 ETB m^(-3), respectively. The result demonstrated that photovoltaic water pump systems are more affordable for the long-term services of small to medium-scale farms than gasoline water pumps.
