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Renewable Energy & Farms, EC DG Agri, 01 July 2011
Stimulating On-Farm Renewable Energy Production in the EU: Why
Farmers are (Not) Involved and Ways to Improve this
Creating benefits for farmers and society
Wilma Steeneveld, Katharina Umpfenbach, Elisabeth
Süßenbacher, Piotr Dziamski, Emiliano Maletta, Berien
Elbersen, Bas Pedroli, Hans Langeveld
Renewable Energy & Farms, EC DG Agri, 01 July 2011
Lead Contractor: Alterra Wageningen UR, in cooperation with Ecologic Institute, IEO EC-BREC, SORIACTIVA, ECN and Wageningen University
DG AGRICULTURE AND RURAL DEVELOPMENT
Project title: Impacts of Renewable Energy on European FarmersReference: AGRI-2010-EVAL-03, Contract Notice 2010/S 53-077521
Project details
Renewable Energy & Farms, EC DG Agri, 01 July 2011
BackgroundOn-farm RE production has the potential to play a crucial role in the transition of European agriculture, as:•it provides a new, additional, source of farm income;•it supports the rural economy by creating new jobs and added value;•it reduces CO2 and other GHG emissions in different economic sectors (agriculture, energy, transportation), thereby delivering a public good;•it reduces dependence on oil-exporting countries;•it supports the development of innovative new industries in member states, with the potential of making Europe a front-runner in farm-based energy production.
Renewable Energy & Farms, EC DG Agri, 01 July 2011
Study approach
• Questionary surveys (800
farmers)
• 8 study regions in 4 countries (Austria, Germany, Poland and Spain)
• Available in literature and public sources of information
• Farm based simulation model to predict effects on farm economy
Renewable Energy & Farms, EC DG Agri, 01 July 2011
Analysis farm survey
Focus of the analysis-- factors determining RE investments (age, income, farm size, successor, attitude, subsidies)-- impacts of RE investments (income, labour, crop choice, input use, crop sales, land prices)-- barriers for RE development (solvability, attitude, economic perspectives, subsidies, permits, opinions of other farmers)
Renewable Energy & Farms, EC DG Agri, 01 July 2011
Project objective and problem formulationThe overall objective of the project was to provide a quantitative assessment of the actual contribution of RE produced on-farm to the overall EU targets on renewable energy and on GHG emissions reduction, as well as on the role of on-farm RE production on the farm economy, income and allocation of production factors and general farm production.
The project also identifies existing barriers to successful on-farm RE development and gives suggestions on policies that can overcome these.
Renewable Energy & Farms, EC DG Agri, 01 July 2011
Region
Dyn
amis
m
Geo
gra
phi
c zo
ne
Env
iron
men
tal
zone
Clim
ate
zone
Mai
n fa
rm typ
e (c
roppin
g, an
imal
hu
sban
dry
, m
ixed
)
Mai
n fe
edst
ocks
Types
of RES
used
Ene
rgy-
rela
ted
Infr
astr
uctu
re
North East Brandenburg, DE
High (except for PV)
Central Europe
Continental Humid continental Large-scale, mixed Maize, wheat, rape Wind, biogas, biofuel
German average
Saarland, DE Low (except for PV)
Central Europe
Atlantic Humid oceanic Small-scale farms PV, biomass German average
Soria, ES Medium-high Southern Europe
Mediterranean North & mountains
Dry Continental-Mediterranean
Large-scale, mixed
Maize, wheat, rape, sunflower, legumes, forage crops
Biomass, wind, Small Hydro, PV
Spanish average (high quality)
Valencia, ES Medium-low Southern Europe
Mediterranean South
Coast-Mediterranean
Small-scale mixed
Fruits, citrus, horticulture, olives, vineyards and winter cereals
Wind, biomass bio-ethanol, Hydro, Solar
Spanish average (high quality)
Mazowieckie, PO
High economic dynamism, but lower RES development potential
Central-eastern Europe
Continental Temperate-Continental
Small scale, mixed
Cereals, potatoes, silage maize, horticulture, forage crops -meadow
Small scale wind, biomass, biogas, solar
Polish average
Warminsko-Mazurskie, PO
Low economic dynamism, but high RES development potential
Central-eastern Europe
Continental Temperate -Continental
Large scale, animal husbandry
Cereals, rape, forage crops
Large scale wind, biomass, biogas, solar
Below Polish average
Northern Upper Austria, AT
High Central Europe
Alpine-continental
Continental Livestock farming, arable crops
Maize, cereals Biogas, biofuels Austrian average
Carinthia, AT Low Central Europe
Alpine Alpine Forestry, livestock Forest-based biomass biogas
Austrian average
Overview of case study regions
Renewable Energy & Farms, EC DG Agri, 01 July 2011
Results
VB presentatie focus groups
Renewable Energy & Farms, EC DG Agri, 01 July 2011
Results
Renewable Energy & Farms, EC DG Agri, 01 July 2011
Results
VB presentatie focus groups
Renewable Energy & Farms, EC DG Agri, 01 July 2011
Analysis Field Survey
Renewable Energy & Farms, EC DG Agri, 01 July 2011
Results
Renewable Energy & Farms, EC DG Agri, 01 July 2011
Results
Renewable Energy & Farms, EC DG Agri, 01 July 2011
Results
All developed probit models show very clearly that none of the farm and farmer characteristics contribute to the explanation whether farmers invested in RE. This is, however, due to the extreme overrepresentation of farmers that did not invest in RE versus those who did.
Renewable Energy & Farms, EC DG Agri, 01 July 2011
Results
Renewable Energy & Farms, EC DG Agri, 01 July 2011
Results
Renewable Energy & Farms, EC DG Agri, 01 July 2011
Analysis Field Survey
Renewable Energy & Farms, EC DG Agri, 01 July 2011
Analysis Field Survey
Renewable Energy & Farms, EC DG Agri, 01 July 2011
Conclusions (I)
Feed-in tariffs are very effective enhance on-farm RE. Investment subsidies are showing lower impacts. Most effective stimulation of on-farm RE through stable, preferably guaranteed, prices for fixed periods of time. Farmers have indicated to accept lower prices if those are guaranteed over time.
RE types like wind energy, PV energy, solid biomass and bioenergy crops can contribute significantly to farm incomes. PV and wind are safe options that do not require extra management. Woody biomass and biogas can provide additional jobs on farms.
In the light of the recent economic crisis and subsequent increases in unemployment RE production could be opportunity to generate additional income and new jobs.
Policies for stimulation of second generation energy crops are relatively poorly developed, while the relevance of bioenergy cropping in national action plans is often considerable.
Renewable Energy & Farms, EC DG Agri, 01 July 2011
Conclusions (II)
Although the perspectives of decentralised production of renewable energy are large in many countries, infrastructural requirements to accommodate its production are still underdeveloped in most regions
Procedures to obtain permits for RE production often can be a barrier for farmers willing to invest in RE capacity.
Although investment subsidies do not seem to have had a major effect on the development of on-farm RE, in specific cases they can offer a stimulus to farmers to invest in RE production, especially in building woody biomass CHP plants, wood chip heating systems and biomass transportation systems. Combined with proper long-term feed-in tariffs this is a powerful incentive to stimulate RE development in the agricultural sector.
Renewable Energy & Farms, EC DG Agri, 01 July 2011
IMPACTS OF RENEWABLE ENERGY ON
EUROPEAN FARMERS
THANKS FOR YOUR ATTENTION
Wilma Steeneveld, Katharina Umpfenbach, Elisabeth
Süßenbacher, Piotr Dziamski, Emiliano Maletta, Berien Elbersen,
Bas Pedroli, Hans Langeveld