As the crisis associated with energy is escalating, so is the growing food consumption of the exponentially rising population throughout Brazil, putting immense pressure on the agriculture sector to cultivate crops while addressing the energy crisis using tools like Agrivoltaics.
Agrivoltaics are a combination of solar panels & plants on farmland that involves combining crops with photovoltaic panels. Here, solar panels are installed at enough height to allow farm machinery to pass underneath, from where the crops can be cultivated. These systems are gaining swift momentum across the country and demonstrating an opportunistic future.
The Brazil Agrivoltaics Market is projected to grow at a CAGR of around 47% during the forecast period, i.e., 2022-27. The market is driven by the growing population and their massive consumption requirements, propelling the demand for Agrivoltaics to cultivate crops while bringing energy efficiency and catering power crisis in the country.
|Study Period||Historical Data: 2017-20|
|Base Year: 2021|
|Forecast Period: 2022-27|
|Key Companies Profiled||Enel Green Power, JS Power, Sun' Agri, Solar Window, Akuo Energy, BayWa r.e., Insolight, REM Tec, Zimmermen, and Next2Sun|
|Unit Denominations||USD Million/Billion|
Besides, rapid fluctuations in the temperature & decreasing precipitation are challenging the agriculture sector to foster higher yields. Hence, the governments are increasingly taking initiatives to address these issues alongside problems like water scarcity and investing substantially in the energy & agriculture sectors. As a result, the production, distribution, and installation of Agrivoltaics are escalating rapidly and positively influencing market growth.
The same aspect is also generating growth opportunities for the leading players to increase their production & distribution capacities and cater to the burgeoning needs across Brazil. Moreover, since Agrivoltaics enable effective use of sunlight for crop growth, it is also beneficial for farmers to earn extra money by selling the power generated using solar panels on the farmland. Hence, owing to a dual income stream for farmers, the adoption of Agrivoltaics is widening across Brazil & and positively influencing the overall market growth.
Furthermore, with the presence of technologies like solar photovoltaics meeting sustainability & addressing resilient concerns for the power industry, the overall cost for solar panels is decreasing continuously. As a result, the installation cost for these Agrivoltaics is also becoming minimal and exemplifies greater set-up throughout the country.
Impact of Covid-19 on Brazil Agrivoltaics Market
The advent of Covid-19 had significant effects on different industries across Brazil, and the Agrivoltaics Market was no exception. With the imposition of stringent movement restrictions & stringent norms imposed by the government to curb the spread of these dreadful diseases, trade businesses associated with the Agrivoltaics equipment were affected. It, in turn, introduced a temporary halt to the installation of these panels across Brazil.
Moreover, as a majority of people had to work from home amidst the crisis, the energy consumption rates escalated substantially, demonstrating a critical need for bringing energy efficiency. As a result, an inclination toward Agrivoltaics to generate energy while allowing agricultural practices simultaneously witnessed an upswing.
However, with the gradual upliftment of restrictions owing to a decreasing number of patient inflow, the leading players in the market are actively participating by increasing their production & distribution capacities for Agrivoltaics and stimulating the overall market growth in the coming years. These aspects shall further enable the industry to regain its usual pace and recover from the losses in the future.