SPECIAL FEATURE SEAR ENERGY ACCESS FOOD AND AGRICULTURE Olivier Dubois, Alessandro Flammini, Ana Kojakovic, Irini Maltsoglou, Manas Puri, and Luis Rincon, FAO b    S TAT E O F E N E R GY ACCES S R EPO RT  |  2 0 1 7 Copyright © 2017 International Bank for Reconstruction and Development / THE WORLD BANK Washington DC 20433 Telephone: +1-202-473-1000 Internet: www.worldbank.org This work is a product of the staff of the World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work and accept no responsibility for any consequence of their use. 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Furthermore, the ESMAP Program Manager would appreciate receiving a copy of the publication that uses this publication for its source sent in care of the address above, or to esmap@worldbank.org Cover photo: © Asian Development Bank (via flickr CC lic) ENERGY ACCESS FOOD AND AGRICULTURE Olivier Dubois, Alessandro Flammini, Ana Kojakovic, Irini Maltsoglou, Manas Puri, and Luis Rincon, Food and Agriculture Organization of the United Nations INTRODUCTION O ver the past century countries have been able to groundwater for irrigation, which requires energy for meet ever-higher food demands thanks to the pumping; gradual land degradation can result in farmers availability of cheap fossil fuels in agriculture. But using more chemical fertilizers, which require energy to there is reason to worry about how much longer this situ- manufacture. ation can continue. If inexpensive fossil fuel ceases to be Against this backdrop, the global community has been available, it will be extremely difficult to boost food pro- looking for ways to create a global food system that can duction enough to meet projected food demand by 2050 support both food security and sustainable development (FAO is projecting a 60 percent food demand increase or “energy-smart food systems”, which (i) improve access over 2006-07 levels). In addition, the use of fossil fuels has to modern energy services, (ii) rely more on low-carbon resulted in food systems becoming a major source of energy systems, (iii) use energy more efficiently, and (iv) are greenhouse gas (GHG) emissions, with significant contri- deployed through a water-energy-food nexus approach. butions to global climate change. At the same time, These systems take advantage of the fact that agri-food changing climate patterns can cause severe droughts or chains—which cover the manufacturing of inputs for farm- floods and changes in water availability and soil quality, ing, transport, processing, storage, and distribution of which may have a severe impact on agri-food systems. In farm products, and food preparation—are not only a con- some cases these changes can also alter energy needs. A sumer of energy but also a producer of energy (figure 1). lack of rainfall can lead to farmers resorting to the use of Currently, various energy-smart food systems are being FIGURE 1 Energy to and from the food value chain Direct energy (electricity; mechanical power; solid, liquid and gaseous fuels) and ENERGY OUTSIDE indirect energy (manufacturing of fertilizers, pesticides, machinery) THE AGRI- FOOD SYSTEM Opportunities for clean energy technology throughout agricultural value chaines Energy INPUTS PRODUCTION TRANSPORT STORAGE and VALUE ADDED TRANSPORT MARKETING END-USER • Seed • On-farm • Farm to HANDLING PROCESSING AND LOGISTICS and • Cooking • Irrigation/ mechanization collection • Cold storage • Drying • Warehouse DISTRIBUTION • Transport pumping • Reduction in center • Moisture • Grinding • Road, rail and • Packaging • Household • Livestock human labor • Collection control • Milling maritime • Retail appliances feed requirements center to • Mechanized • Other transport (supermarkets) • Fertlizer pumping processing sorting/ • Refrigeration • Increased facility/ packaging Food operational market efficiencies Food (energy) losses Source: FAO/USAID, 2015   1  2    S TAT E O F E L E C T RI CI TY ACCES S R EPO RT  |  2 0 1 7 experimented with around the world, and the next major fuels, which are cleaner and more efficient, as the sole fuel hurdle will be scaling-up the best ones. or in conjunction with woodfuel. In recent decades, traditional forms of energy inputs have been largely displaced by fossil fuels as agri-food systems ENERGY REQUIRED FOR THE AGRI-FOOD have become more industrialized and farm and food pro- CHAIN cessing enterprises have become more intensive (a pro- Energy is needed in all steps along the agri-food chain, cess still continuing in many countries). Hence the provision both directly (for production, processing, and transport) of modern energy services—like heating, cooling, trans- and indirectly (for manufacturing of fertilizers, agro-chem- port of goods, water pumping, lighting, animal welfare, icals, and machinery), although a significant amount of and mechanical power—have become largely dependent energy is lost through food losses. The agri-food sector is on fossil fuel inputs. For agriculture (crops and livestock), responsible for around one third of the world’s total final fishing, and forestry production, the demand for energy energy demand (figure 2). In high-GDP countries, about over the past decade has been steadily rising, with the 25 percent of the total is consumed before reaching the main energy inputs coming from electricity and diesel fuel farm-gate (including fisheries), 45 percent in food process- and a small rise in renewables. However, the total value of ing and distribution, and 30 percent in retail, preparation agricultural gross production has risen faster than the sec- and cooking. In low-GDP countries, a smaller share of tor’s total energy consumption, leading to a slight reduc- energy is used on the farm and a greater share for cooking tion in energy intensity at the global level (figure 3). (FAO, 2011a). Moreover, energy is responsible for about At the regional level, big differences exist. In Europe, 35 percent of GHG emissions from agri-food chains between 2000 and 2012, there was a 20 percent reduction (excluding land use and land use change emissions), or in agricultural energy intensity, and there were slight reduc- about 26 percent if land use changes are included (FAO, tions in North America and Asia—but in Africa, there was a 2011a). Household income levels are closely tied to the significant increase. These trends have continued over the choice of and use of cooking fuels: low-income house- past three decades, with the increase in average annual holds depend on solid biomass1 (like crop waste, dung, fossil fuels demand for agriculture in Africa, Central and and wood fuel), while more affluent households use liquid South America, and Asia being only partially offset by decreases in Europe, while demand remained quite stable in North America and Oceania (figure 4). FIGURE 2 Poorer countries use a greater share of energy for cooking (Indicative shares of final energy consumption of the LEVELS OF ACCESS TO MODERN ENERGY agri-food chain including direct and indirect energy inputs) Energy access in the agriculture sector is critical to ensure that agriculture production can meet the growing food 100% demand. Many small, remote rural communities remain without access to modern energy services due to poor road infrastructure and lack of an electricity grid. This 80 shortfall affects not only food production and processing but also food preparation—where a major amount of the energy spent along the food chain is concentrated, espe- cially in the poorest countries. 60% In developing countries, most households’ energy is provided by traditional solid biomass (figure 5) such as woodfuel and cow dung. Women and children are gener- 40% ally responsible to collect and provide for household energy, which has negative consequences for their health as cooking based on traditional biomass is linked to indoor air pollution and carrying heavy woodfuel loads. 20% Considerable time is also spent on woodfuel collection, which can range from less than an hour to almost 8 hours per day (Practical Action, 2014). Even where electricity 0% distribution lines have been built, supply may be very Global High income Low income unreliable, with frequent outages and fluctuating power countries countries quality. In such locations, diesel-generators are often Cropping production employed to produce electricity, or renewable energy Livestock production systems have been developed (such as solar, small-scale Fisheries production hydro, or wind power systems). Processing and distribution The energy gaps in smallholder agriculture and related Retail, preparation and cooking rural enterprises are extremely difficult to quantify, given Source: (FAO, 2011a). that energy sources and uses are so diverse and diffuse, Note: EJ = exajoule. Production for fisheries, livestock, and scattered across millions of small farms and communities. cropping are seen as occurring “behind the farmgate.” But some of the headline statistics give a hint of the scale ENERGY ACCESS: FOOD AND AGRI C U LTU RE   3  FIGURE 3 Agriculture is continuing to demand higher levels of energy (Rate of increase, 2000–2012) 140 130 120 Index (2000 =100) 110 100 90 80 70 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Agricultural energy Agricultural gross Agricultural energy consumption (J) production value (I$) intensity (J/I$) Source: Elaborated on the basis of FAOSTAT, 2015. Note: J = joules; I$ = international dollars (2006-07). FIGURE 4 Developing regions lead in higher fossil fuel demand (Decadal energy demand increases in the food production sector by world region and energy source.) 3,500 3,000 2,500 2,000 TJ/year 1,500 1,000 500 0 1990– 2000– 2010– 1990– 2000– 2010– 1990– 2000– 2010– 1990– 2000– 2010– 1990– 2000– 2010– 1990– 2000– 2010– 1999 2009 2012 1999 2009 2012 1999 2009 2012 1999 2009 2012 1999 2009 2012 1999 2009 2012 Africa North America Central-South Asia Europe Oceania America & Caribbean Gas-diesel oils Residual fuel oil Gasoline Hard coal Natural gas (including LNG) Electricity Liquefied petroleum gas (LPG) Source: FAO and USAID, 2015. 4    S TAT E O F E L E C T RI CI TY ACCES S R EPO RT  |  2 0 1 7 FIGURE 5 Developing countries still But for these goals to be met, there needs to be better and depend heavily on traditional solid biomass more affordable energy supplies. An increase in the (Share of households with access to modern and traditional amount of energy used, and access to a wider range of cooking facilities) appliances providing energy services—which will also necessitate better access to land, water, seeds, knowl- 100% edge, market for produce, and appropriate local technical 90% support services (such as a network of repair services). . 80% SUPPLYING ENERGY IN A MORE 70% SUSTAINABLE WAY 60% A top priority now for the global community is to find more 50% sustainable ways of producing energy and make it accessi- 40% ble to farmers. One way to do this is by applying low-car- bon and renewable energy solutions to agriculture—known 30% as energy-smart food systems—to replace fossil fuels. This 20% is already increasingly taking place in the heating, cooling, and power sectors, and to some degree in the transport 10% sector (through the growing use of biofuels and electric 0% vehicles). In remote rural areas where no electricity grid SSA LAC SEA connection exists, stand-alone mini-grid solutions are Modern Traditional increasingly being constructed, particularly where they No cooking in household offer the potential to boost local economic development because of more intensive agricultural and food process- Source: Elaborated on the basis of USAID DHS 2008–2014 data. ing activities. Fortunately, a range of energy technologies and prac- tices are common to many food chains, which provide of the problem, and examples of this can be found in opportunities to increase access to modern energy and/or sub-Saharan Africa (IIED 2014): reduce fossil fuel demand—two intertwined objectives. • Most farm power relies on human effort (65 percent) or These include both renewable energy and energy effi- animal power (25 percent), with a minority from engines ciency measures, such as those illustrated below (FAO and (10 percent)—much lower than for other developing re- USAID, 2015): gions, where engines constitute 50 percent of farm power. Conservation agriculture. This is an approach to manage ecosystems for improved and sustained productivity by • Just 4 percent of cropland is irrigated, compared with minimizing mechanical soil disturbance, providing perma- 39 percent in South Asia and 29 percent in East Asia. nent soil cover to maintain moisture content, and diversify- • An estimated 10–20 percent of grain is lost after it is ing crop species grown in rotation. Reduced energy can harvested at an annual cost of $4 billion—equal to the result from less fuel used for tillage, less power for irriga- value of cereals imported each year. tion, and less indirect energy needed for weed control per unit of produce. These energy gaps matter greatly because access to mod- ern energy for agro-processing can contribute significantly Irrigation. Water pumping for drinking water, irrigation, to the economic and social makeup of developing coun- and food processing consumes a lot of energy, usually by tries. And greater agriculture productivity and efficiency is the use of either electricity or diesel for internal combus- a primary driver for food security, income generation, tion engines, to power the pumps. Solar and wind-pow- development of rural areas, and poverty reduction (Practi- ered pumps are growing in popularity and should be cal Action, 2012). The goals should be to enable a small- encouraged where the potential for solar and wind energy holder farmer to: exists. Energy demands for irrigation can be reduced by: • Increase productivity and yields via improved efficiency • Using gravity supply where possible. of land preparation, planting, cultivation, irrigation, and harvesting. • Using efficient designs of electric motors. • Sizing pumping systems to the crop’s actual water re- • Improve processing, providing better quality and quan- quirements. tity of products and requiring less time and effort for cooking, heating, storage, preservation, or transforma- • Choosing efficient water pump designs that are cor- tion into higher quality products, thus adding value. rectly matched to suit the task. • Performing pump maintenance regularly. • Earn more from the produce through better market ac- cess and new market opportunities (like access to infor- • Using low-head distribution sprinkler systems or drip mation about pricing). irrigation in row crops. ENERGY ACCESS: FOOD AND AGRI C U LTU RE   5  • Reducing water leakages in all components of irrigation ing fresh food across the world to meet demand for systems. out-of-season products is highly energy dependent com- pared with supplying local markets with fresh food when • Monitoring soil moisture to guide water application available. Transport of food commodities (such as milk rates. powder or rice in bulk), and fruit and vegetables (such as • Choosing appropriate and drought resistant crop vari- apples, bananas, potatoes, and carrots), at times under eties. controlled atmosphere or refrigeration, can be relatively • Using weather forecasts when applying water on a rota- cheap with a low-carbon footprint per ton. In rural areas, tional basis to different fields. better roads can help reduce the energy and time needed to take fresh products to markets and hence improve local • Varying irrigation rates across a field to match the soil livelihoods. and moisture conditions by using automatic regulation control systems based on Global Positioning Systems Field machinery. Tractors and machinery can produce sim- (GPS). ilar power outputs using less fuel where engines are main- • Conserving soil moisture after application through tained, tire pressures are correct, unnecessary ballast for mulch and tree shelter belts. the task is removed, and the operator understands how to optimize tractor performance through correct gear and • Maintaining all equipment, water sources, and intake throttle selection as well as the use of the hydraulic sys- screens in good working order. tems. A well-trained operator can save up to 10 percent Storage and refrigeration. Cooling and cold storage are fuel and 20 percent of time sitting on the tractor as well as used widely to maintain food quality both after harvesting reduce damage to soil through compaction or wheel-slip. and processing and to reduce losses along the supply chain. Refrigeration systems depend on reliable electricity Food processing. Processing of food at either the small-to- supply systems, although new technologies such as solar medium enterprise or large business scale requires energy absorption chillers are reaching the market. Other sources for heating, cooling, lighting, packaging, and storing. The of renewable electricity can be used on both small and energy needed for such “beyond the farm gate” opera- large scales. For cold stores, reducing energy demand is tions globally totals around three times the energy used possible through such measures as increasing the insula- “behind the farm gate.” In many processing plants, an tion, keeping access doors closed, and minimizing the heat energy audit by a trained specialist would identify cost-ef- load at the end of the processing phase of the cold chain. fective opportunities to reduce energy consumption while increasing throughput and quality. Heat (such as for hot Fertilizers. Energy embedded in the production of inor- water, pasteurized milk, greenhouses, dried fruits and veg- ganic fertilizer (including nitrogen, phosphorous, NPK, and etables, and canned food) is normally produced by com- potash blends) is significant. Farmers can save indirect busting natural gas, coal, oil, and biomass, or from electrical energy by reducing the amount of fertilizers applied and resistance heaters. To reduce energy demands, the heat more accurate application methods. Recommendations can be used more efficiently, and heat losses within a sys- include: tem can be reduced by heat exchangers taking heat out of milk to pre-heat water. In all cases, the heat can be pro- • Growing nitrogen-fixing legume crops as green crops. vided from solar thermal, geothermal, or modern bioen- • Selecting an NPK fertilizer of the desired nutrient value ergy heat plants, or from efficiently designed heat pumps. after undertaking soil or leaf analysis. Renewable energy. This type of energy can substitute for • Applying at the calibrated rate as determined by the fossil fuel inputs for heat and electricity all along the val- soil or leaf analysis test results. ue-added chain where good local resources exist. It can be • Applying smaller amounts whenever the crop can re- achieved using grid electricity with a growing share of spond to give greater productivity. renewables, or installing solar photovoltaic (PV), solar ther- mal, wind power, or bioenergy for heat and power on the • Applying liquid fertilizers, including through injection, farm or at the processing plants. Since organic wastes are directly into irrigation water (fertigation). often produced both on-farm and at the processing plant, • Using organic manures where available in line with investments in anaerobic digestion plants to produce bio- good agricultural practices, including the effluent aris- gas that can be used to provide heat, power, or transport ing from food processing plants and the sludge from fuels are being widely deployed. biogas plants. Fishing. The fishing industry can become more ener- • Using precision agriculture techniques based on GPS gy-smart along the entire food chain, particularly by reduc- controlled equipment and an assessment of soil type ing fuel consumption of large and small fishing vessels. variations. This will help the industry cope with the volatility and rising Transport and distribution. Given the fluctuating prices trends of fuel and energy prices and ensure fish remain for fossil fuels, transport and distribution are particularly available at accessible prices. For example, fouling (marine vulnerable components of the food chain. The key ele- weed growth on the hull of a fishing vessel) can contribute ments in this category are distance and markets. Air-freight- to an increase in fuel consumption of up to 7 percent after 6    S TAT E O F E L E C T RI CI TY ACCES S R EPO RT  |  2 0 1 7 only one month and 44 percent after six months, but it can sector and producers. As such, they can initially supple- be reduced significantly through the use of anti-fouling ment, and potentially substitute for, fossil fuels used in paints. In addition, reducing 20 percent of the speed in a activities like transport, heating and cooking, and rural and fishing vessel could reduce up to 51 percent of fuel con- industrial electrification (Fang, Z., 2013). sumption. Biofuels can come in three forms and types (FAO, It is worth pointing out that the development of ener- 2004): gy-smart technologies like those mentioned above can • Gaseous biofuels (biogas, and syngas) are produced often lead to tradeoffs, including: from agricultural residues, woody residues, or dedicat- • Between energy efficiency and efficiency in the use of ed plantations through anaerobic digestion, gasifica- other inputs (for instance, flood irrigation requires tion processes. Additional purification stages allow ob- much less energy but is much less water efficient than taining biohydrogen and biomethane. These biofuels drip irrigation). can potentially replace fossil fuels such as natural gas, LPG, and heating oils. • Between energy efficiency and access to energy (for instance, expensive energy efficient tractors versus • Liquid biofuels (methanol, ethanol, butanol, biodiesel, second-hand, more affordable but much less ener- bio-oil, and straight vegetable oil) are produced from gy-efficient ones; efficient biogas cookstoves versus crops and other feedstock types (including biomass res- woodfuel ones). idues and algae). They can potentially replace fossil fuel alternatives such as diesel, petrol, propane, and LPG. The Water-Energy-Food Nexus Assessment methodology The most common alternatives for liquid biofuel pro- proposed by FAO (FAO, 2014), discussed further in this duction are fermentation, transesterification, and pyrol- section, helps address such tradeoffs and seeks synergies. ysis or Fischer-Tropsch processes. • Solid biofuels (charcoal, briquettes and pellets) com- ENERGY DERIVED FROM THE AGRI-FOOD prise a transformation of biomass (like woody biomass CHAIN and crop residues) into more efficient fuel options So far, we have stressed that energy is a key factor affect- through densification or pyrolysis processes. They can ing agriculture and that potential options should be con- be used as intermediates for more valuable biofuels sidered to enhance the sustainability of agricultural production or the potential replacement of fossil coals, production and supply. However, agriculture, like other LPG, and propane. They can also substitute for fuel- biomass-related economic sectors, offers the potential to wood, especially in areas with deforestation problems. produce biomass-based fuels. These biofuels (which are These different forms of bioenergy use various feedstock produced using residues, by-products, or products from that can be grown or collected from diverse environments the agri-food chain) can generate energy—called bioen- and can then be converted through a range of processing ergy—to supply various stages of the agricultural value pathways and technologies, which together characterize chain, produce energy for external users, and, once the specific bioenergy pathway. In India, electricity is being exported, generate additional income for the agriculture generated by gasifying rice husks (see Box 1). BOX 1 Using Rice Husks for Rural Electrification in India Many parts of rural India are not connected to the electric grid, forcing millions of people to depend on solid biomass or diesel/kerosene for lighting, cooking, and heating. Yet India produces large amounts of agricultural residues like rice husks. Husk Power System (HPS) provides electricity in remote, rural villages in India through small-scale systems that generate and distribute power cheaply. Each system consists of a 30–50 kilowatt power plant that runs entirely on rice husks, generating electricity through biomass gasification. A simple distribution micro-grid connects subscribers directly to the plant using insulated wires strung from bamboo poles. The gasifier systems are built only in locations where rice husks are available and accessible. HPS plants offer competitive prices for husks year-round so that farmers have an incentive to supply them to ensure that electricity remains available in their villages. HPS provides electricity at a levelized cost2 of around $0.20 per kilowatt hour, which can likely drop to $0.15–0.16 as utilization increases. In Bihar, HPS has installed 84 mini-power plants, providing electricity to over 200,000 people spread across 300 villages, and employing 350 people. Each plant serves around 400 households, saving approximately 42,000 litres of kerosene and 18,000 litres of diesel per year, thereby significantly reducing indoor air pollution and improving health conditions. Sources: Husk power systems (http://www.huskpowersystems.com) and International Finance Cooperation (IFC) http://www.ifc.org/ wps/wcm/connect/1b7be8004d332ecb8976cdf81ee631cc/Husk+Power.pdf?MOD=AJPERES ENERGY ACCESS: FOOD AND AGRI C U LTU RE   7  FIGURE 6  A generic bioenergy pathway Primary energy Energy carrier Storage I Transport Storage II Conversion Biomass Biofuel Source: (FAO, 2014). The experience of those countries that have succeeded directly or passed through electro-mechanical devices to in reducing hunger and malnutrition shows that economic generate electricity. But in gasification and pyrolysis, bio- growth does not automatically ensure success—the source mass is chemically modified to generate more advanced of growth matters, too. Growth originating in agriculture, fuel forms (such as syngas and bio-oil). These advanced especially in the smallholder sector, is at least twice as biofuels have a higher energy potential and can thus gen- effective in benefiting the poor as growth in non-agricul- erate more energy compared to the initial biomass. tural sectors. This is not surprising since most of the poor Depending on the energy end use, these fuels are burned in today’s developing countries live in rural areas, where in boilers, modified diesel engines, or gas engines to gen- their incomes are directly or indirectly tied to agriculture. erate heat and electricity. Given these potential benefits, what is crucial to under- Along these lines, cogeneration systems (CHP) allow stand is how the bioenergy sector should be developed to producing heat and power simultaneously through a com- ensure that the positive effects are secured and that the bination of different technologies arranged to extract natural resource base is not over-exploited. This develop- energy contained in biomass or advanced biofuels more ment option should always be screened against other efficiently. When the generated heat is fully utilised, a CHP development options, if any, to ensure the optimal use of system can reach total efficiency (thermal and electrical) of resources. FAO’s Bioenergy and Food Security (BEFS) 80 percent (or even more). approach helps countries understand which bioenergy Anaerobic digestion is a technology used for producing options exist for them. biogas—comprised mainly of methane and carbon diox- The actual production of bioenergy requires biomass to ide—by microbial digestion of organic matter under anaer- be grown/produced, harvested/collected, transported, obic conditions. Any biodegradable material (like manure, aggregated, stored, and—depending on the final use, bio- crop residues, green crops, food processing residues, sew- mass type, and the conversion technology—pre-pro- age sludge, organic fraction of municipal waste, or a mix- cessed before being converted into energy (figure 6). ture thereof) can be used as feedstock. The biogas can be Any assessment of biomass resources must account for used directly in households for cooking, heating, and light- competing uses and environmental sustainability issues to ing—or when produced on a larger (industrial) scale, for provide an accurate picture of the potential availability of a heat or CHP via gas engines or turbines. country’s biomass resources so as to avoid creating con- Liquid biofuels used in transport are obtained through flicts with other biomass users. The assessment should also different chemical and biological pathways according to cover the sustainable availability of biomass resources the main replacement fuel and the level of processing (including seasonal patterns) and the techno-economic required. Straight vegetable oil (SVO)—the simplest liquid viability of the biomass technology—and be linked to biofuel—is obtained by extracting oil from oilseeds and energy needs for the agri-food system. In this way, policy slightly purified to increase its shelf life. It is directly used in makers can get a complete picture of bioenergy produc- modified diesel engines for either rural electrification or tion and its interlinkages with other sectors. trucks. Further processing of extracted vegetable oils Also important to weigh is how the biofuel is produced. (using a chemical route known as transesterification) can Each biomass type requires a specific technology pathway produce biodiesel, which can serve as a clean-burning to be converted into a biofuel, which will have a specific replacement for diesel fuels. Conversely, sugar, starchy, or potential energy end use (FAO 2010). Figure 7 illustrates lignocellulosic feedstock can be converted through fer- some of the combinations that exist in terms of the path- mentation and additional steps into ethanol or butanol, ways going from biomass to energy—with the biomass which can be used to replace petrol. options including oil crops, sugar and starch crops, ligno- Bioenergy has a wide range of uses depending on the cellulosic biomass, and wet biomass. specific needs and production scale required. Thus, it is Modern combustion, gasification, and pyrolysis are possible to find small-scale rural electrification options largely mature thermo-chemical conversion technologies, where small gasification units attached to gas engines are although improvements in performance and conversion used to supply energy to nearby smallholders. There are efficiencies are always being sought. They are similar in also community biogas projects, where independent dairy how matter is modified to obtain energy, but differ in how farmers collect manure from farms to provide a community energy potential is released. In combustion technology, biogas digester to produce local electricity for heating and biomass is burned to produce heat, which can be used cooking. Other interesting applications are found in bio- 8    S TAT E O F E L E C T RI CI TY ACCES S R EPO RT  |  2 0 1 7 FIGURE 7 Possible bioenergy pathways Oil crops (mechanical energy) (palm oil, rape, crushing, refining Vegetable oil Liquid biofuels sunflower, etc.) Transport transesterification Biodiesel Sugar crops hydrolysis, (sugarcane maize fermentation Biothenol cereals, etc.) Fuelwood, residues Electricity devices Electric Direct combustion/co-generation Lignocellulosic biomass pryolisis Charcoal (products and residues: wood, straw, bagasse, etc.) drying, pressing Pellets/briquetts Heating, cooking processing industrial gasification Fuel gas Heat Wet biomass Biogas (organic waste, manure, etc.) anaerobic digestion Source: Adapted from AEBIOM.3 mass-based agro-industries such as rice mills, corn mills, or produced from residues. The literature that addresses the tea factories—where biomass feedstock is transformed trade-offs between competing uses of crop residues is rel- into a number of value added products, and biomass resi- atively scant, but FAO has developed tools that address dues are used to self-supply the plant energy needs, with this issue at both territorial and operational levels. extra energy quantities available for export. Box 2 contains three more bioenergy examples: (i) biogas production and USING AGRI-FOOD CHAIN TO SUPPORT use in the milk industry in Pakistan, (ii) the use of wastewa- ter from coffee production to generate electricity in Hon- THE ANCHOR-LOAD MODEL duras, and (iii) the burning of bamboo dust to produce In the context of sustainable biomass supply, it is vital to energy in Ethiopia. make the business profitable so that it can attract potential In the specific case of bioenergy from agricultural bio- investors. One critical factor affecting production scale and mass (such as crop and livestock residues), biomass offers potential profitability is determining the potential con- a viable way to produce energy from surplus residues. sumer demand—although this can be difficult to deter- Here the emphasis is on the need for the residues to be mine in developing countries, due to lack of information, surplus residues (that is, residues net of other essential irregular consumption patterns, and ability to pay. For that uses in agriculture). To be used in a sustainable way, resi- reason, private energy enterprises in these countries are dues must only be removed when they do not hamper soil increasingly using the A-B-C model for electricity produc- quality or compete with other uses (like animal feed). In tion and mini-grids distribution. some regions, the combination of crop, management This approach involves identifying three different practice, soil, and climate, work together to produce more groups of customers—Anchor, Business groups, and Com- than is needed to maintain soil health—enabling excess munity members. Within the groups, anchor load is pre- residues to be converted into energy. dictable and offers a guaranteed source of revenue for the However, it is important to discern in what systems res- project developer, whereas business group and commu- idue harvest for energy purposes is possible, or even ben- nity members are usual customers. The anchor customers eficial, and at what rates. This is often true for tropical and with a base load demand for energy such as telecommuni- sub-tropical climates where the soil organic carbon pool is cation infrastructure (tower base stations), agriculture below the critical level. In some cases, trade-offs can be (water pumping and food processing) makes sure that the found when too much crop residue can create problems energy provider has consistent demand for energy making (like diseases and fires in dry areas) or residues substituted the investment viable. Local households and businesses with alternative sources for soil protection and livestock are then connected to the micro-grid in collaboration with feed (like cover crops). In others, win-win solutions are partner social entrepreneurs who provide energy access possible, such as biogas and use of its by-product as through locally tailored and feasible business models like bio-fertilizer, or using soil amendments such as biochar energy kiosks. The community benefits from direct access ENERGY ACCESS: FOOD AND AGRI C U LTU RE   9  BOX 2 Bioenergy Examples Around the World Milk chilling with biogas in Pakistan In the Punjab region in Pakistan, biogas plants have been installed on 3 farms that have around 100 cows each. The biogas facility uses cow dung as feed stock and produces electricity of between 32kWh to 64kWh, depending on the size of the bio digester ( 50m3 and 100 m3). This amount is sufficient to run milk chillers with capacities of 500 litres (12kWh) and 1,000 litres (20.8 kWh) for 8 hours. The excess energy is used for lighting purposes and to power other equipment (like fodder cutters or fans). Electricity production from coffee wastewater in Honduras Coffee production is a dominant industry in Honduras, generating around a million direct and indirect jobs. COCAFELOL (La Cooperativa Cafetalera Ecológica La Labor) – which produces, processes, and exports coffee – has installed a bio-digester to process the wastewater generated in the processing of coffee berries. The biogas is used to run an electricity generation system of 14 kW capacity, which is enough to replace the energy consumed in the mill’s administrative area. Bamboo dust use in Ethiopia In Ethiopia, African Bamboo is developing an energy self-sufficient friendly bamboo-flooring factory, called Ther- moBoo. The bamboo first undergoes a chemical free process in which decay factors, such as rot and insects, are virtually eliminated. The treated bamboo is then, further processed into sturdy panels to be sold domestically and internationally. Bamboo dust is a by-product of the process and is combusted to generate energy. This is an inno- vative technology that has the potential to produce surplus energy for the region. Sources: Wisions of Sustainability, 2013 http://www.wisions.net/files/uploads/SEPS_Summary_SG016_Pakistan_Biogas_manure_milk_ chilling.pdf; Productive Biogas: Current and Future Development, 2014 http://www.snv.org/public/cms/sites/default/files/explore/ download/snv_fact_productive_biogas_2014_final.pdf FIGURE 8 Framework to increase energy access based on anchor client energy energy hubs devices/appliances mini-grid Social entrepreneurs local partners Anchor local information client connection/distribution Energy ICT Households Electronics mobile payment revenues revenues Source: : World Economic Forum, 2013. to energy and the wider impacts of enabled economic making it viable for the project developer to invest in activity, reduced health impacts, and reduced environmen- building a mini grid or other forms of energy infrastructure. tal damage (World Economic Forum, 2013). Figure 8 illus- For instance, OMC Power,4 a company that develops mini trates how an anchor load system can work, drawing on grids to electrify rural villages in India, identified its main the telecommunication industry, which is currently a user of anchor customers as owners of telecom towers that need the model. The same approach and structure could be energy around the year. In this regard, OMC has signed an applied to the agribusiness sector, where, for instance an agreement with Bharati Infratel to electrify its telecom tow- agri-processing facility can act as an anchor customer. ers by providing micro-power for the next 10 years. For Such a framework brings together energy providers commercial establishments and other community users, such as utilities and energy service providers and industries OMC Power has devised a concept called “micro-power that need reliable and cost-efficient energy for their oper- business-in-a-box” where community entrepreneurs are ations. The idea hinges around an anchor customer that engaged in the village electrification process. Micro-power guarantees energy demand over an extended period, from OMC ranges from a 1.2 to 3.6 kilowatt load, and 10    S TAT E O F E L E CTR I CI TY ACCES S R EPO RT  |  2 0 17 beyond. For rural consumers, it has a pre-paid system and opportunities to identify bottlenecks to productivity, based on subscription, where a rural consumer is charged or where energy could have the highest impacts on income a monthly rental of $2 per month. (GNESD, 2014). and cost-effectiveness. In certain contexts, needs assess- ments should place a strong emphasis on gender. After all, about 43 percent of the agricultural workforce in develop- SCALING UP ENERGY-SMART SOLUTIONS ing countries is made up by women, but they mostly have FOR AGRI-FOOD CHAINS less access to productive assets than men. If this access of To scale-up the uptake of sustainable energy solutions, women would increase, the respective yields could be practices, and behaviors, it is important to align available increased by 20-30 percent (FAO, 2011b). The real needs solutions with local settings. Interventions require a peo- vary hugely across different farming systems. Smallholders ple-centered “bottom-up” approach, and they need to be are a heterogeneous group, working with diverse farming better tailored to local contexts, as experiences from systems—and vary with crops, locality, context, culture, energy as well as agricultural mechanization have shown. and agro-ecological zones. Sometimes, significant This means addressing the following questions (Energype- improvements can be reached through low-cost, “tradi- dia): (i) For what purpose is energy required?; (ii) Which tional” technology (like treadle pumps), as opposed to equipment and systems would be needed to produce modern energy services. energy?; (iii) Will the system be economically viable in the One way to analyze energy interventions is by using a identified context?; and (iv) How can local capacity to run Water-Energy-Food Nexus approach, which entails the fol- and maintain the systems be built? lowing (FAO, 2014): Production of bioenergy from agricultural residues is • Addressing interactions that take place in the context one promising way in which access to energy can be of global drivers (such as demographic change, urban- increased in rural areas. But like other agricultural activities, ization, technological advancements, trade, diversifica- bioenergy can compete for labor and natural resources tion of diets, and climate change) to meet different and and thus the benefits to be accrued have to be closely often competing social, economic, and environmental investigated to ensure food security is not hampered. In goals, along with interests of different sectors that rely fact, some of these concerns can be addressed by well-de- on the same limited resources. signed policies and land management practices. What needs accessing is whether agriculture residues are avail- • Assessing the impact of specific interventions from a able once other uses are accounted for (such as feed, fod- nexus perspective (how much water is needed to pro- der, and soil nutrients). If unused residues are available, duce energy and how much energy to pump water) vis- this option can also allow mitigating climate change à-vis the status of the context where these interventions impacts by avoiding residues to be burnt in the field. All are implemented. The Nexus Assessment methodolo- options need to be environmentally and financially sustain- gy developed by FAO can be used to this effect. able. The overarching key principle is to ensure that the A nexus approach requires inclusive, multi-stakeholder agrifood system and energy systems are integrated. institutional arrangements. Such arrangements need to A value chain analysis can help point out energy needs address a variety of issues, including the division of labor, BOX 3 Peru’s Solar-Powered Drip Irrigation System In Peru, like in many other countries, irrigation is done by flooding the field with seasonal water or using gravity fed systems. In places where farmers can afford to buy a pump, irrigation relies on diesel/gasoline-powered pumps. A University of Massachusetts project provides an inexpensive, low-pressure, 12-volt diaphragm pump that is connected to a 250 watt solar photovoltaic array. A prototype of the system was installed in January 2008 in Turripampa, Peru. Researchers report that water delivery by drip lines at the plants’ root level is 40 percent more efficient per unit land area than traditional flood irrigation in furrows, since less water is lost due to evaporation and seepage in the sandy soils. Liquid fertilizer can also be applied to the field through the drip lines, reducing labor and energy costs. In addition, depending on the crop cycle, drip irrigation can allow up to three harvests per year instead of just one in the rainy season, generating enough income to quickly pay for the system. Growing asparagus, a drought resistant cash crop, enables the small farmer to pay back the $1,500 initial investment in two years. Source: (Barreto et al., 2009). ENERGY ACCESS: FOOD AND AGRIC U LTU RE   11  financial schemes, technical support services, and business all types of energy services, past experience has shown models. Division of labor and clear financial arrangements that no single institutional model reliably provides better between farmers and energy operators are required to success rates than others (GIZ, 2011). Three market-ori- ensure the quality and the expansion of energy-smart ented business models systems have recently gained cur- farming systems. For example, under outgrower schemes, rency (GIZ, 2011): farmers take responsibility for what they do best, which is • Energy service companies (ESCO): Private operators farming, while others deal with the specialized needs of who typically own the energy production and supply energy production (FAO, 2011a). Another lesson lies in the equipment, and charge for energy services on a fee-for- need to involve users strongly in project design to ensure service basis. The business risk in terms of energy sup- a needs-based approach. One concrete idea is to imple- ply is fully undertaken by the ESCO. ment energy literacy campaigns to help people under- stand opportunities, articulate their needs, and demand • Leasing, or hire-purchase: Private leasing company re- high quality services from government and providers (IIED, tains ownership of the energy production and supply 2014). systems until the customer has completed payment Where renewable energy resources are available, it is over the lease period. feasible to use agricultural land to both produce food and • Concession model: A concession for fee-for-service op- generate energy. Food processing plants often have bio- erations is signed between the private service provider mass co-products suitable for generating bioenergy, and and the government. This approach is very recent and renewable energy systems in rural areas can provide sev- has faced several types of implementation challenges eral co-benefits for landowners, businesses, and rural com- munities (FAO, 2011a). Scaling-up successful experiences will require bringing At this point, knowledge gaps still exist about econom- together approaches and experiences of the energy and ically viable delivery models for different energy needs in the agri-food sectors—with an emphasis on energy needs farming, as well as the role of the private sector in provid- and challenges in smallholder farming. Such an integrated ing energy services to smallholders. Innovative institutional approach is essential for tackling the challenge of increas- arrangements and financing mechanisms that involve sev- ing access to modern energy for smallholders, while sup- eral types of partners are required to support the develop- porting a transition to more environmentally sustainable ment of the renewable energy sector (IIED, 2014). But for food and energy systems. . NOTES 1. Biomass is material of biological origin (excluding material embedded in geological formations) that is transformed into fuel. Through an array of conversion technologies, it can be converted to produce heat, electricity, and transport fuels (FAO, 2004). 2. The levelized cost is the total costs (including capital investments, operating costs, and financing costs) divided by the total energy output over the lifetime of the plant. For more, see: https://www.eia.gov/conference/2013/pdf/presentations/namovicz.pdf 3. (http://www.aebiom.org/blog/category/about_us/about_bioenergy/, last accessed: April 2015) 4. Source: http://www.omcpower.com/. 12    S TAT E O F E L E CTR I CI TY ACCES S R EPO RT  |  2 0 17 REFERENCES Barreto, C and Duffy J, 2009.Low cost solar drip irrigation for FAO, 2004, Unified Bioenergy Terminology, FAO Forestry small farmers in developing countries. 0158. Buffalo: Department, FAO Rome ASES. GIZ, 2011. Modern Energy Services for Modern Agriculture Energypedia. Energy Needs in Smallholder Agriculture. —A Review of Smallholder Farming in Developing Available online at https://energypedia.info/wiki/ Countries Energy_Needs_in_Smallholder_Agriculture (accessed May GNESD. 2014 Renewable energy-based rural electrification: 2015) The Mini-Grid Experience from India. New Delhi: Fang, Z., 2013. Liquid, Gaseous and Solid Biofuels—Conver- Prepared by The Energy and Resources Institute (TERI) for sion Techniques, InTech. the Global Network on Energy for Sustainable Develop- FAO/USAID, 2015. Opportunities for Agri-food Chains to ment (GNESD) Become Energy-Smart. Available online at http://www. IIED, 2014. Growing Power: Exploring energy needs in fao.org/publications/card/ smallholder agriculture en/c/0ca1c73e-18ab-4dba-81b0-f8e480c37113/ Practical Action, 2012. Poor People’s Energy Outlook FAO, 2014. Walking the Nexus Talk: Assessing the Water-En- Practical Action, 2014. Poor People’s Energy Outlook ergy-Food Nexus World Economic Forum, 2013. Scaling Up Energy Access FAO, 2011a. Energy-Smart Food for People and Climate through Cross-sector Partnerships. Available online at FAO, 2011b. The State of Food and Agriculture 2010-2011. https://www.pwc.com/gx/en/sustainability/publications/ Women in Agriculture: Closing the gender gap for assets/pwc-wef-scaling-up-energy-access-through-cross- development. sector_partnerships.pdf FAO. 2010. Bioenergy and Food Security: The BFES Analytical Framework. SPECIAL FEATURES To download the State of Electricity Access Report, overview, and Special Features, visit: http://esmap.org/SEAR