Solar Powered Irrigation Systems
Solar Powered Irrigation Systems
Business Model Description
Investments in irrigation modernization projects for the adoption of more efficient irrigation technologies such as solar powered irrigation systems which can be combined with drip irrigation and other efficient pressurized irrigation techniques
Expected Impact
This IOA will promote more efficient water consumption in agriculture and reduce agricultural production costs.
How is this information gathered?
Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.
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Country & Regions
- Turkey: Central Anatolia Region
- Turkey: Mediterranean Region
- Turkey: Southeastern Anatolia Region
Sector Classification
Food and Beverage
Development need
Significant challenges remain for Turkey in combatting hunger and climate change. The relevant indicators across SDG 1 (No Poverty) and SDG 10 (Reduced Inequalities) suggest that the existing measures are insufficient to reach the target levels of poverty alleviation in the country by 2023, rendering food security and price stability increasingly important.
Policy priority
Turkey's 2nd Voluntary National Review on the Sustainable Development Goals, 11th Development Plan, and the 2020 Presidential Program place agriculture among the priority development areas. All of these documents highlight concerns over price stability and agricultural productivity. Development within this sector is also vital for rural livelihoods
Gender inequalities and marginalization issues
The share of women working in the agriculture sector is 25.1%, while the share of men is 14.9%. (23) This sector mainly provides employment to women in rural areas as seasonal workers. While this is the case, most of the production equipment are reportedly owned by men. (24) 24.8% of the Turkish population is classified as 'rural' by the FAO. (25)
Investment opportunities
There is a growing international and domestic demand for organic and sustainably produced food products. Moreover, advancements in agricultural technology provide opportunities for more cost-effective and sustainable production methods
Key bottlenecks
Turkish agricultural production mainly consists of smallholder farmers with fragmented land ownership. While increasing quality standards and technological efficiency, it is important to ensure that changes in the procurement and production systems do not drive these farmers out of the market.
Food and Agriculture
Development need
Access to adequate food and meeting nutrition needs and increasing agricultural productivity and climate resilient agricultural practices are all areas of improvement for Turkey's development trajectory. Agriculture contributed to 5.8% of the GDP in 2018, and this figure is expected to decrease to 5.4% by 2023 (2)
Policy priority
Essential development goals noted by the 11th Development Plan, the VNR on SDGs and the 2020 Presidential Program include improving prosperity in rural areas and achieving sustained food security by increasing the yield and quality of agricultural products; the sustainable management of land and water resources; combatting climate change, desertification and erosion; and protecting biodiversity
Gender inequalities and marginalization issues
The share of women working in the agriculture sector is 25.1%, while the share of men is 14.9%. (23) This sector mainly provides employment to women in rural areas as seasonal workers. While this is the case, most of the production equipment are reportedly owned by men. (24) 24.8% of the Turkish population is classified as 'rural' by the FAO. (25)
Investment opportunities
There is a growing international and domestic demand for organic and sustainably produced food products. Moreover, advancements in agricultural technology provide opportunities for more cost-effective and sustainable production methods
Key bottlenecks
Turkish agricultural production mainly consists of smallholder farmers with fragmented land ownership. While increasing quality standards and technological efficiency, it is important to ensure that changes in the procurement and production systems do not drive these farmers out of the market.
Pipeline Opportunity
Solar Powered Irrigation Systems
Investments in irrigation modernization projects for the adoption of more efficient irrigation technologies such as solar powered irrigation systems which can be combined with drip irrigation and other efficient pressurized irrigation techniques
Business Case
Market Size and Environment
Irrigation Potential Number of farming households
Turkey is the 7th biggest agricultural economy in the world. (14 There are over 4 million farming households in Turkey (15).
Turkey’s irrigation potential is 8.5 million ha, 93% surface water resources, 7% groundwater. (13)
Indicative Return
5% - 10%
Academic research in the field finds that, under the current circumstances, a photovoltaic irrigation system has an investment rate savings of 4,6% relative to a diesel based irrigation system. (12)
Investment Timeframe
Short Term (0–5 years)
Investments in small-scale or individual solar energy projects are predicted to yield returns in 4 to 5 years for investors. (12)
Ticket Size
This heavily depends on the scale of implementation: Whether it is the individual adoption of solar-powered irrigation techs or en-masse transformation in a cooperative etc
Market Risks & Scale Obstacles
Capital - CapEx Intensive
Business - Supply Chain Constraints
Capital - Requires Subsidy
Impact Case
Sustainable Development Need
Solar-powered irrigation systems provide a clean alternative to fossil fuels and enable the development of low-carbon irrigated agriculture. In areas with limited access to energy, they contribute to rural electrification and reduce irrigation-related energy costs (9)
In Turkey, agricultural irrigation constitutes 75% of total water consumption which is approximately equal to about 30% of renewable water availability (10). The average per capita availability of water is shrinking due to the relatively high growth rate of the population (11).
Irrigation can be a significant source of GHG emissions under conventional methods. There is a potential reduction in GHG emissions per unit of energy used for water pumping (CO2-eq/kWh) of 95-97% as compared with pumps operated with grid electricity and 97-98% as vs. diesel pumps (9)
Gender & Marginalisation
25.1%,of the agricultural workers in Turkey are women. In total, 24.8% of the Turkish population is classified as rural. (23,25) Improving energy security in rural areas will contribute to rural and female livelihood
Expected Development Outcome
>Improve the accessibility of electricity needed for irrigation in farms and agricultural enterprises, especially in rural areas that are off the grid. This will extend the provision of basic utilities to previously uncovered areas, improving livelihoods and contributing to rural development
>Increase agricultural productivity and income due to improved access to water; additional cropping season, diversification of cropping pattern, higher value crops.(9)
Gender & Marginalisation
Provide affordable energy access for rural population / female led households
Primary SDGs addressed
1.4.1 Proportion of population living in households with access to basic services
2.1.2 Prevalence of moderate or severe food insecurity in the population, based on the Food Insecurity Experience Scale (FIES)
2.3.1 Volume of production per labour unit by classes of farming/pastoral/forestry enterprise size
2.3.2 Average income of small-scale food producers, by sex and indigenous status
2.4.1 Proportion of agricultural area under productive and sustainable agriculture
2.c.1 Indicator of food price anomalies
87.8% (2017) (21)
$15,706.89 (2016) (22)
12.90 (2014) (22)
12.90 (2014) (22)
7.1.1 Proportion of population with access to electricity
7.1.2 Proportion of population with primary reliance on clean fuels and technology
7.2.1 Renewable energy share in the total final energy consumption
100% (21)
59.8 % (access to natural gas - 2017) (21)
13.08% (2018) (1)
100%
51% (1)
Secondary SDGs addressed
Indirectly impacted stakeholders
People
Gender inequality and/or marginalization
Planet
Outcome Risks
The prospect of higher returns per hectare might encourage some farmers to expand planted areas or to switch to higher-value, more water-intensive crops. (20)
Solar power irrigation systems require high initial capital costs and might be individually inaccessible to small-holder farmers.
Without the necessary training or external consultancy, the optimal operation and maintenance of SPIS and drip irrigation might not be achieved.
Impact Risks
Unexpected Impact Risk
Efficiency risk
Execution risk
Impact Classification
What
reduced water consumption in agriculture
Who
Water use associations, farmers and private sector irrigation companies will benefit from this model.
Risk
High Risk (Solar power irrigation might be inaccessible to small-holder farmers, the optimal operation and maintenance of SPIS and drip irrigation,harvest of more water-intensive crops.)
Impact Thesis
This IOA will promote more efficient water consumption in agriculture and reduce agricultural production costs.
Enabling Environment
Policy Environment
The 2020 Presidential Program: states the importance of supporting modern irrigation systems in agriculture.
The New Economic Program of 2020-2022: states the importance of supporting modern irrigation systems in agriculture.
The 2019-2023 Strategic Plan of the Ministry of Agriculture and Forestry: states the importance of supporting modern irrigation systems in agriculture.
11th Development Plan: emphasizes the importance of reducing carbon emissions and switching to renewable energy resource, both to reduce export dependency in energy needs and for the preservation of the environment
Financial Environment
Financial incentives: 50% grant support is offered by the Ministry of Agriculture and Forestry for the individual use of modern pressurized irrigation technologies by farmers registered under the Farmer Registration System. (18)
Fiscal incentives: Ziraat Bankası offers low-interest credits for investments in modern irrigation systems. Similar initiatives by Şekerbank and QNB Finansbank for investments in irrigation. (19)
Other incentives: TURSEFF has a Sustainable Energy Financing Project, The WB and EBRD currently have a US$ 254.00 million irrigation modernization project, İzmir Development Agency plans to launch a 25 million TRY support program for energy and water efficiency projects to cover energy efficiency
Regulatory Environment
The Ministry of Agriculture and Forestry, the Institution for Supporting Agricultural and Rural Development, the Ministry of Energy and Natural Resources and the State Hydraulic Works Agency are the regulating bodies for the activities in this IOA
Legislation of 12 May 2019: paved the way for the sale of excess/surplus energy used in agricultural solar enery irrigation systems to the grid. (17)
"The General Directorate of State Hydraulic Works (DSI) supervises the use of water resources in Turkey. DSI issues the licenses for water abstraction and inspects the quantities of water abstracted by licence holders. This is regulated by the following laws: Groundwater Law No 167 of 23 December 1960. Groundwater Bye-law of 20 July 1961. Regulation on Water Allocation of 10 December 2019. Groundwater Technical Regulation of 23 June 1972. (26)"
Marketplace Participants
Private Sector
Solar PV installers and manufacturers such as Dal Solar, Power Enerji, Güneş Tarım, CW Enerji etc. Domestic and international banks providing feasible credit and financing options for agricultural development and renewable energy projects- Ziraat Bankası, Şeker Bank, QNB Finansbank
Government
The Ministry of Agriculture and Forestry, The Ministry of Energy and Natural Resources, State Hydraulic Works (DSI)
Multilaterals
MDBs such as IFC and EBRD, the World Bank
Non-Profit
The Institution for Supporting Agricultural and Rural Development, GUNDER, GENSED
Target Locations
Turkey: Central Anatolia Region
Turkey: Mediterranean Region
Turkey: Southeastern Anatolia Region
References
- (1) Sustainable Development Report Dashboard 2020, OECD Members, Turkey, https://dashboards.sdgindex.org/?fbclid=IwAR1tzYVKRXvPD2mwfvhf-mLTGGQEjA76y_HlrprWhSzNYZcqrLZMLXzRIcI#/TUR "2) 11th Development Plan http://www.sbb.gov.tr/wp-content/uploads/2020/03/On_BirinciPLan_ingilizce_SonBaski.pdf "
- (3) The New Economic Program of 2020-2022, http://www.sbb.gov.tr/wp-content/uploads/2019/10/YeniEkonomiProgrami_OVP_2020-2022.pdf
- (4) Sustainable Development Goals Evaluation Report from the Directorate of Strategy and Budget
- (5) The 2019-2023 Strategic Plan of the Ministry of Agriculture and Forestry, https://www.tarimorman.gov.tr/SGB/Belgeler/stratejikplan.pdf
- (6) TR82 Regional Plan 2014-2023, https://www.kuzka.gov.tr/paylasim/20160401_tr82_bolge_plani_(WEB).pdf
- (7) OKA Regional Development Master Plan, https://www.oka.org.tr/assets/upload/dosyalar/ybdp_regional_development_master_plan-39-85.pdf
- (8) TRB1 Regional Plan, https://fka.gov.tr/sharepoint/userfiles/Icerik_Dosya_Ekleri/BOLGE_PLANI/TRB1BOLGEPLANI(2014-2023).pdf
- (23) ILOSTAT, 2019, https://ilostat.ilo.org/data/country-profiles/
- (24) FAOSTAT, 2018, http://www.fao.org/faostat/en/#country/223
- (25) FAO, 2018, http://www.fao.org/new-york/fao-statements/detail/en/c/1109620/
- (26) Thomson Reuters Practical Law, 2020. https://uk.practicallaw.thomsonreuters.com/2-605-0610?transitionType=Default&contextData=(sc.Default)&firstPage=true#co_anchor_a509055
- (9) Food and Agriculture Organization, The Benefits and Risks of Solar Powered Irrigation- a Global Overview, http://www.fao.org/3/i9047en/I9047EN.pdf
- (10)OECD, Agricultural Water Pricing: Turkey, https://www.oecd.org/turkey/45016347.pdf
- (11)Agricultural Water Pricing: Turkey, OECD 2010, https://www.oecd.org/turkey/45016347.pdf
- (12) Journal of the Faculty of Engineering and Architecture of Gazi University, "Tarımsal Sulama ve Güneş Enerjisi" by Ramazan Şenol, https://dergipark.org.tr/en/download/article-file/75881
- (13) Food and Agriculture Organization, Turkey Irrigation and Drainage, http://www.fao.org/nr/water/aquastat/countries_regions/Profile_segments/TUR-IrrDr_eng.stm
- (14) Small Holder Farmers' Access to Market in Turkey, COMCEC 2014, http://www.comcec.org/wp-content/uploads/2015/08/Turkey2.pdf
- (15) New Agriculturist, Country Profile-Turkey, http://www.new-ag.info/en/country/profile.php?a=878 "16) Gundergi, ""2020 Sonrası Yenilenebilir Enerji Kaynakları Destek Mekanizması Nasıl Olmalı"", https://www.gunder.org.tr/files/GUNDERGI-11-MART-2018.pdf"
- (17) Resmi Gazete/Official Gazete, Number: 30772, 12th of May 2019, https://www.resmigazete.gov.tr/eskiler/2019/05/20190512.pdf
- (18) Devlet Destekli, "Tarimsal Sulama Hibe Desteği 2020 Yilinda Yuzde 50 Veriliyor", https://www.devletdestekli.com/tarimsal-sulama-hibe-destegi-2019-yilinda-yuzde-50-veriliyor/
- (19) Resmi Gazete/Official Gazete, Number: 30997 "TC Ziraat Bankasi A.Ş ve Tarım Kredi Kooperatifleri Tarımsal Üretime Dair Düşük Faizli Yatırım ve İşletme Kredisi Kullandırılmasına İlişkin Karar"
- (20) Food and Agriculture Organization, Towards a Water and Food Secure Future, http://www.fao.org/3/a-i4560e.pdf
- (21) Turkey's Sustainable Development Gaols 2nd VNR 2019 https://sustainabledevelopment.un.org/content/documents/23862Turkey_VNR_110719.pdf
- (22) SDG Tracker - https://sdg-tracker.org/zero-hunger