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