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Solar Energy

Agri-PV: Still several hurdles to overcome

January 27, 2025 ryansheehanrts

Since this year, for the first time, agri-PV systems in Germany have also been subsidized through innovation tenders for so-called special solar systems under the Renewable Energy Sources Act (EEG). Twelve Agri-Photovoltaic projects with a capacity of 22 megawatts were awarded a contract and thus a market premium in the tender round in May 2022. In the new EEG 2023, the promotion of agri-PV through tenders will now be continued or permanently established.

In principle, this is welcomed by the industry as an important step. However, there is also criticism. BayWa r.e., for example, decided against the participation of Agri-PV plants in the innovation tenders “due to the complex legal conditions”, as Fabian Neu, Project Developer Germany, reports. He points out that Agri-PV plants are more capital-intensive than ground-mounted solar plants due to their special requirements as well as more complex technology.

Especially high-mounted systems have difficulties

The inclusion of Agri-PV in the new EEG leads to a significant increase of the area potential in Germany, which is positive. However, Neu says that it will be rather difficult in the near future for the highly elevated plants (for example, in fruit and wine growing) due to the material price increases, even with the additional premium for horizontal plants within the framework of commercial projects.

The bonus for agri-PV under the tenders is clearly set too low here, he adds. “With the new EEG 2023, we see the focus in the near future for larger solar projects primarily on ground-mounted Agri-PV systems for arable crops and permanent grassland,” Neu says.

Building law as a strong brakeman

Antonia Kallina of the Kehl Institute for Applied Research (KIAF) points to the hurdles for Agri-PV under building law. KIAF is currently involved in three research projects on Agri-PV and is working closely with Fraunhofer ISE in Freiburg.

Did you miss that? Research project to accelerate the market introduction of agri-PV

In any case, the lawyer does not see the innovation tenders as a “gamechanger” for Agri-PV. “Up to now, Agri-PV plants have had to comply with the requirements of the EEG as part of the innovation tenders, specifically the subsidy law requirements of Section 37 of the EEG, which refer to the requirements of building planning law. These restrictions will likely mean that there will be no sustained push through the innovation tenders,” says Kallina.

Loan financing of projects also more difficult

Credit financing of Agri-PV projects is also made more difficult by the lack of privileges for Agri-PV plants in outdoor areas under the Building Code (BauGB), he said. This leads to the fact that mostly only temporary approvals for Agri-PV plants are granted.

This means that there is a lack of planning security for both the banks and the project developers. The only exception is if the local municipality has drawn up a project-related development plan for the construction of the Agri-PV plant. However, this is time-consuming and cost-intensive, according to Kallina.

Therefore now the voices increase, which demand a legal privileging of solar plants in the external area. Recently, for example, the district administrator of Lüchow-Dannenberg (Lower Saxony), Dagmar Schulz (non-party), pleaded for this in order to bring forward planned projects more quickly.

Selected suppliers Agri-PV

BayWaRe

BayWa r.e. offers the option of purchasing individual components for Agri-PV systems, such as semi-transparent special modules, through the company’s solar wholesale business. The planning and technical conceptual design as well as the construction of the Agri-PV system are then carried out by the farmer via a local installer. BayWa r.e. offers an “all-round carefree package” from the approval planning for the area and the grid connection to the construction planning to the construction of the Agri-PV system and the subsequent operational management as project developer or operator. However, in addition to the possible lease income for the farmer, there is an opportunity for investment participation. For the development of an Agri-PV plant within the framework of a project company, suitable areas of 10 hectares or more are being sought.

Zimmermann PV-Steel Group

The Zimmermann PV-Steel Group (Baden-Württemberg) develops, produces and sells substructures for larger Agri-PV systems with modules in horizontal elevation in various designs. Areas of application are fruit, berry, vegetable and arable farming.

A tracker system is also offered that places the solar modules in a vertical position for harvesting and tillage in order to use the maximum working width between the rows. In normal operation, the system tracks from east to west, thus also yielding up to 20% more energy than fixed systems.

Next2Sun

The Saarland-based company Next2Sun offers vertically mounted agri-PV systems with bifacial solar modules as a complete system – with trackers if desired – including inverters. Application areas are mainly permanent grassland and arable farming, whereby the Agri-PV systems can also be used as solar fences for property demarcation. The portfolio ranges from land leases for Agri-PV systems and their turnkey implementation to the sale of components and technical services for project developers and the installers of systems.

Other suppliers include AgroSolar Europe, Tube Solar, REM Tech, SunAgri, MKG Göbel. (hcn)

Also interesting; Viennese researchers have compiled facts about agriphotovoltaics

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Solar Energy

PV – “Dual use with animal husbandry has great potential”

December 12, 2024 ryansheehanrts

Mr. Bovenschen, what exactly do you mean by agrivoltaics?

„Agri-photovoltaics” refers to the combination of energy generation and agriculture on a common area. Agricultural use can involve both crops and livestock farming. The PV modules are then either mounted much higher above the ground so that farming can be carried out below. Or the row spacing is increased and the agricultural activities take place primarily between the rows of modules. Alternatively, the modules can also be installed vertically and farming can also take place between the rows of modules. However, this variant is not currently being subsidized.

We would like to see so-called “external agri-PV” integrated into this segment in future, so that it can be considered as particularly eligible for funding. By this we mean ground-mounted photovoltaic systems with wide row spacing in conjunction with grassland management. Grassland management is already a recognized form of agriculture, for example for the production of fodder. Grassland status is important for biodiversity, as grassland provides a high-quality habitat for a large number of different animal and plant species. This should therefore also be recognized as “Agri-PV”.

What opportunities does the Agri-PV offer from your perspective – nationally and internationally?

Agri-PV offers open space potential, especially in densely populated countries with few agricultural areas (e.g. Japan), but also in individual regions with a strong agricultural character (e.g. in northern Italy, in many regions of the Netherlands or in North Rhine-Westphalia). Italy in particular is certainly a pioneer here. There, for example, 1.7 billion euros have been made available to promote more than 1 GW of agri-PV with commissioning by the end of 2026. We are also already very active there.

In general, in addition to the combination with agricultural crops, dual use with livestock farming in particular offers great potential. There is already very good experience in many places with sheep farming under or between the rows of modules. Interestingly, a new DIN specification for agri-PV with animal husbandry is currently being worked on. We expect the results in the coming year; the specifications with regard to animal species groups, stocking density, animal requirements etc. will be decisive.

Nevertheless, it must be emphasized: Agri-PV applications are a useful addition in various niches. However, there is sufficient open space available in Germany for broad-based electricity generation in order to produce cost-effective electricity. The advantage of “agri-PV” would be an opening up of the area, e.g. priority areas for agriculture, as well as a fairly high level of acceptance among the population.

Can it replace “classic” solar parks?

At present, agri-PV is not expected to replace traditional solar parks. Due to the available space, PV systems on open spaces make perfect sense, especially for climate and nature conservation. Biodiversity PV systems – which is what most ground-mounted PV systems are – make a major contribution to nature conservation. At the same time, they are currently the cheapest form of electricity generation. And we don’t want to lose sight of that either: a low-cost electricity supply in Germany.

We have also noticed that our customers have so far not specifically requested projects with “Agri-PV” due to their low profitability. Only in a few exceptional cases do we see that “agri-PV” is already economically feasible today, for example in conjunction with a wind project with high soil quality and a nearby grid feed-in point.

In general, however, the aim is actually to replace conventional electricity sources in the medium term with the wide range of renewable energy options, wherever this is possible and sensible. This certainly includes both “classic” solar parks and agri-PV systems.

What about the economic viability of agrivoltaics? Do we need additional subsidies – at least for the foreseeable future?

Agri-PV in the form of crops is currently largely uneconomical. The extra remuneration via the technology bonus under the Renewable Energy Sources Act is not enough.

Did you miss that? Optimisation brings more yields

Elevated systems (at a clear height of 2.1 m or more) are uneconomical due to the additional costs for the complex racks. Projects elevated vertically are usually uneconomical due to the lower power generation. In order to help agri-PV achieve a market breakthrough and create confidence on the part of banks and investors, higher subsidies and reliable framework conditions such as those in Italy would be helpful.

What effect is the current fall in PV module prices having on the agri-PV sector?

The oversupply of PV modules from Asia is of course also noticeable in this segment. At the same time, however, there are also significant cost increases in other areas, e.g. services (expert opinions, construction work, etc.), racks (a cost driver for agrivoltaics), electrotechnical components (e.g. inverters, control technology) and, very significantly, transformer stations, but also the generally higher level of interest rates. All in all, we have to conclude that The fall in module prices does not compensate for the additional costs, particularly for racks.

Where do you still see a need for development in Agri-PV?

A clear definition of agri-PV is necessary, because a clear definition reduces uncertainty in the business model and helps all parties involved (approval authorities, investors, owners, developers…). An adjustment of the EEG subsidy level for crop-based Agri-PV could make these systems more economical and therefore more attractive for investors. If there is a larger market for “Agri-PV”, there will also be more competition for special Agri-PV components, which could lead to cost reductions.

To what extent is Juwi involved in the agri-PV sector – and in which projects?

We are currently heavily involved in the development of projects in Italy in the form of a tracking system (economical due to high irradiation values). We are also planning the first pilot systems as part of research projects in Germany.

The interview was conducted by Hans-Christoph Neidlein

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Solar Energy

Energy storage – Optimizing energy storage

November 15, 2024 ryansheehanrts

New optimization techniques have emerged as powerful tools to address these challenges. By considering not only factors like electricity prices, demand forecasts, but also real time battery data and battery degradation, operators can make smarter decisions about when to charge, discharge, or idle their systems. These strategies not only boost immediate profitability but also preserve the long-term health of energy storage assets, ensuring increased long term profitability.

Market dynamics and energy storage optimization

Understanding market behavior is crucial for optimizing energy storage systems. Electricity prices fluctuate due to various factors like grid demand, renewable energy availability, and regulatory policies. Energy storage operators can take advantage of these price fluctuations by charging batteries when prices are low and discharging when prices are high. Other key revenue streams, like grid support and frequency regulation, also play a vital role. Grid support services, such as voltage regulation and load balancing, help stabilize the grid during periods of high demand or unexpected outages, ensuring operational efficiency. Frequency regulation, which maintains the grid’s correct operational frequency (typically 50 or 60 Hz), relies on energy storage to quickly respond to imbalances by either absorbing or releasing power.

Also see: Battery revenues forecast to rebound in 2026

Leveraging predictive algorithms enables energy storage systems to adjust their operations based on forecasted market trends, weather data, and regulatory signals. By doing so, operators can position their systems to enhance financial performance.

Battery degradation and lifecycle management

Battery degradation is one of the most significant challenges in energy storage operations, and its complexities go beyond the simple metrics of usage. The performance and longevity of a battery are influenced by a variety of interconnected factors, including depth of discharge, frequency of use, and temperature variations. For example, while deep discharge cycles can shorten battery life, it’s not just about how deep the discharge is, but also how frequently these deep cycles occur, the charging rates applied afterward, and the operational conditions under which the battery is used.

Frequent cycling causes wear and tear, but the specific effects of each cycle vary depending on the battery’s state of charge, thermal environment, and electrochemical properties. These factors create a highly intricate system where understanding how individual cycles impact battery lifetime—and long-term profitability—is an ongoing challenge. Battery health degradation is non-linear and difficult to predict without advanced monitoring systems and predictive analytics.

Read more about storage here

To extend battery life and maintain capacity, it is crucial to manage these factors with precision. Limiting deep discharges, optimizing charge cycles, and controlling operational temperatures are foundational practices, but the integration of real-time data analysis to predict degradation patterns is equally important. Proactive management through sophisticated lifecycle monitoring and adaptive control strategies not only reduces maintenance costs but also enhances the return on investment. A strategy that balances immediate operational efficiency with long-term battery health maximizes profitability and ensures the reliability of energy storage systems over time.

Operational constraints in battery systems

Optimizing energy storage is not just about market dynamics or degradation management. Operational constraints play a vital role in ensuring the system runs efficiently within its physical and technical limits. For instance, maintaining an optimal state of charge prevents both overcharging and deep depletion, which can damage the battery.

Also interesting: New guideline for increased fire protection in battery storage systems

Adhering to limits on charge and discharge rates is equally important. Exceeding these rates can lead to irreversible damage, reducing battery lifespan and effectiveness. Moreover, compliance with grid requirements, including power quality and frequency support, ensures seamless integration of energy storage into the grid. These operational parameters, when integrated into the optimization process, safeguard battery health and ensure sustained profitability over time.

Incorporating cost functions

Optimization is the process of making the best possible decisions to achieve specific goals while minimizing costs or maximizing efficiency. In the context of battery operation, optimization ensures that the battery system performs at its highest potential by making strategic decisions, like when to charge or discharge. A key tool in this process is the cost function, which assigns values to different operational scenarios based on factors like electricity prices, battery degradation, and market demand. By evaluating these factors, a well-designed cost function helps operators make data-driven decisions that improve real-time profitability and overall system efficiency.

An innovative aspect of this approach lies in the ability of cost functions to integrate both short-term market dynamics and long-term operational goals. For example, an innovative cost function not only suggests charging during periods of low electricity prices and discharging during peak times but also incorporates insights into battery health and how much the operation will affect the long term profits. This allows operators to plan for operation at optimal times, extending the battery’s lifespan while maintaining revenues. By combining real-time market analysis with battery health, this advanced cost function ensures both immediate financial gains and prolonged system reliability.

Decision-making processes and optimization algorithms

The decision-making processes for managing Battery Energy Storage Systems (BESS) have been transformed by the introduction of sophisticated optimization algorithms. Unlike traditional approaches, where operators rely on static models or manual oversight, today’s data-driven systems enable dynamic, real-time decision-making that adapts to various factors such as market conditions, battery health, and grid demands. This shift marks a significant improvement over conventional methods, which often fail to capture the complexity of efficiently and sustainably operating modern energy storage systems.

Also interesting: Central & Eastern Europe – Utility-scale storage market set to increase fivefold by 2030

This new approach is revolutionary in several ways. It replaces the outdated, one-size-fits-all model of battery operation with one that is adaptive and intelligent. The algorithms take into account a variety of conditions, enabling operators to fine-tune system performance based on real-time data rather than relying on fixed schedules or reactive measures.
Moreover, these decision-making tools contribute significantly to sustainability.

By optimizing when and how batteries are used, operators can minimize wear and tear, reducing the need for frequent replacements and lowering lifecycle costs. This not only decreases material waste but also ensures that energy storage systems can operate longer before requiring upgrades or replacements. Additionally, by improving the efficiency of energy storage, these algorithms support the broader adoption of renewable energy sources like solar, accelerating the transition to a cleaner, more sustainable energy future.

Conclusion

The optimization of Battery Energy Storage Systems (BESS) through advanced algorithms has transformed energy management. Moving beyond traditional, reactive methods, these data-driven approaches enable real-time decision-making that boosts both efficiency and long-term profitability. By optimizing battery use, minimizing degradation, and extending system life, operators can increase revenues while ensuring sustainability and reducing waste.

Website of Reli Energy

This innovative approach balances short-term market gains with the widespread integration of renewable energy, positioning optimized BESS management as a key driver in the shift toward a more sustainable and profitable energy future.(Laura Laringe/hcn)

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Solar Energy

IRENA report – PV 56 % cheaper than fossil fuels or nuclear

September 25, 2024 ryansheehanrts

Renewables remain competitive despite fossil fuel prices returning closer to historical cost levels, concludes Renewable Power Generation Costs in 2023, released by the International Renewable Energy Agency (IRENA) at the Global Renewables Summit during the UN General Assembly in New York.

Of the record 473 gigawatts (GW) added in 2023, 81% or 382 GW of newly commissioned, utility-scale renewable projects had lower costs than their fossil fuel-fired alternatives.

IRENA’s new report shows that after decades of falling costs and improving technology particularly for solar and wind, the socio-economic and environmental benefits of renewable energy deployment are now uniquely compelling.

4 US-cents/kWh average PV costs globally

With a spectacular decline in costs to around four US cents per kilowatt hour in just one year, solar photovoltaics (PV)’s global costs in 2023 were 56% lower than fossil fuel and nuclear options. Overall, the renewable power deployed globally since 2000 has saved up to USD 409 billion in fuel costs in the power sector.

IRENA’s Director-General Francesco La Camera said: “Renewable power remains cost-competitive vis-à-vis fossil fuels. The virtuous cycle of long-term support policies has accelerated renewables. In return, growth has led to technology improvements and cost reductions. Prices for renewables are no excuse anymore, on the contrary. The record growth of renewables in 2023 exemplifies this. Low-cost renewables represent a key incentive to significantly increase ambition and triple renewable power capacity by 2030, as modelled by IRENA and set by the UAE Consensus at COP28”.

Battery storage projects costs dropped by 89% since 2010

Achieving the tripling renewables target requires global renewable capacity to reach 11.2 terawatts (TW) by 2030, adding an average of 1044 GW of new capacity annually through 2030. 8.5 TW would come from solar PV and onshore wind alone according to IRENA’s World Energy Transitions Outlook.

Most importantly, the tripling goal must be accompanied by key energy transition enablers, such as storage. Battery storage project costs have dropped by 89% between 2010 and 2023, facilitating the integration of high shares of solar and wind capacity by helping address grid infrastructure challenges.

Also see: Large battery storage systems as new champions

La Camera added: “In the coming years, remarkable growth across all renewable energy sources is expected, giving countries great economic opportunities. Our analysis indicates that solar PV and onshore wind will have the biggest impacts on the tripling of renewables. Thanks to low-cost renewables in the global market, policy makers have an immediate solution at hand to reduce fossil fuels dependency, limit the economic and social damage of carbon-intensive energy use, drive economic development and harness energy security benefits.”

12% less costs for PV from new projects in 2023

In 2023, the global weighted average cost of electricity from newly commissioned renewable projects across most technologies fell, for solar PV by 12%, for onshore wind by 3%, for offshore wind by 7%, for concentrating solar power by 4% and for hydropower by 7%, the new IRENA report unveils.

In non-OECD economies where electricity demand is growing and new capacity is needed, renewable power generation projects with lower costs than fossil fuel-fired equivalents for their country and region will significantly reduce electricity system costs over the life of their operation.

Huge savings with renewables

In 2023, Asia registered the highest cumulative savings in the period between 2000-2010, estimated at USD 212 billion, followed by Europe with USD 88 billion and South America with an estimated USD 53 billion.

Also see: Rising energy demand affecting the pace of the energy transition

Renewable power generation has become the default source of least-cost new power generation. Policy makers and stakeholders should focus on ensuring that policies, regulations, market structures, support instruments, de-risking mechanisms, and financing are all rapidly aligned with the tripling target and submitted in the next round of Nationally Determined Contributions to the Paris Agreement in 2025. (hcn)

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