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ORIGINAL RESEARCH article
Front. Hortic.
Sec. Viticulture, Pomology, and Soft Fruits
Volume 3 - 2024 |
doi: 10.3389/fhort.2024.1473072
This article is part of the Research Topic Agrivoltaics in Crop Production: from Models to the Field View all articles
Assessing the Economic Performance of Agrivoltaic Systems in Vineyards -Framework Development, Simulated Scenarios and Directions for Future Research
Provisionally accepted- 1 Department of Wine and Beverage Business Research, Hochschule Geisenheim University, Geisenheim, Germany
- 2 Group Agrivoltaics, Fraunhofer Institute for Solar Energy Systems (ISE), Freiburg, Germany
- 3 Department of Economics, University of Freiburg, Freiburg, Baden-Wurttemberg, Germany
- 4 Department of Applied Ecology, Hochschule Geisenheim University, Geisenheim, Germany
- 5 Department of General and Organic Viticulture, Hochschule Geisenheim University, Geisenheim, Germany
This paper presents a framework for assessing the economic performance of agrivoltaic systems (AVS) in vineyards. The study aims to classify factors influencing the profitability of integrating photovoltaic (PV) systems with viticultural practices, including potential synergistic benefits. Based on the geographic and climatic conditions of Geisenheim, Germany, where the first AVS installation in viticulture in Germany is located, various scenarios were simulated to operationalize this framework. Key variables identified include capital expenditures (CAPEX), operational expenditures (OPEX), and revenue streams from grape and energy production. The study examines factors like solar radiation, panel transparency, and regulatory impacts to evaluate their importance to overall profitability. Scenarios analyzed include configurations with fully opaque and semi-transparent PV modules and adjustments for full mechanization and self-consumption of produced energy.Findings reveal that AVS is not economically viable for widespread adoption under current conditions in Germany. High initial costs and insufficient revenue from grape and energy production result in negative net present values over a 20-year period for all scenarios. CAPEX and energy prices are significant profitability determinants, whereas viticulture-related costs and revenues have a minor impact.The study suggests that achieving economic sustainability for AVS would require significant cost reductions or increases in energy prices or efficiency. Scenarios combining multiple positive changes, such as premium wine pricing, higher feed-in tariffs, and increased self-consumption of energy, show promise for approaching economic feasibility. Implications indicate that AVS technology needs further innovation and cost reduction before widespread industry adoption. The study provides an extensive framework for future research, emphasizing the need for long-term trials to understand viticultural impacts and synergistic benefits. This framework can guide future investments and policy-making for integrating renewable energy with sustainable agriculture.Future research should explore dynamic revenue and cost models, regulatory impacts, and broader environmental and social benefits of AVS. Continuous updates to the framework will be necessary to reflect evolving trends and innovations in viticulture and PV technologies.
Keywords: Agrivoltaics, economic sustainability, profitability, Renewable Energy, viticulture
Received: 30 Jul 2024; Accepted: 08 Nov 2024.
Copyright: © 2024 Strub, Wittke, Trommsdorff, Kammann, Stoll and Loose. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.
* Correspondence:
Larissa Strub, Department of Wine and Beverage Business Research, Hochschule Geisenheim University, Geisenheim, Germany
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