Agrivoltaics: looking to solve Pakistan’s food and energy conundrum at the same time

In what could only be called the climax moment of a movie that was dragging on, Pakistani authorities managed to clinch a deal with the International Monetary Fund (IMF), announced literally hours ahead of the expiration of the previous programme.

The development allowed the country to avoid a potential sovereign default, a major breakthrough for the incumbent government and the country at large.

Following the announcement by the Washington-based lender, inflows from bilateral partners including Saudi Arabia, the United Arab Emirates, including multilateral financial institutions such as World Bank, Asian Development poured in.

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Economic pundits, government officials and the common man alike celebrated the resumption of the IMF facility.

However, if we just filter out the noise, it must be noted that the IMF’s nine-month Stand-By Agreement (SBA) – stipulating that $3 billion would be disbursed in three tranches – provides nothing more than mere breathing room for the country.

This gives an opportunity for the authorities and policymakers to bring in much-needed economic reforms, which ensure sustainable long-term growth, and end the cyclical boom and bust cycle.

One of the key concerns for Pakistan is to generate ample foreign exchange reserves and also control the outflow of foreign currency by curbing imports.

As per official data, Pakistan’s import bill, mostly consisting of energy and agri products, stood at $60 billion in fiscal year 2022-23, down from $84.49 billion recorded in the previous year, a decline of nearly 29%.

However, the decline was due to regulatory steps taken by the central bank aimed to reduce the pressure on external accounts, which will not be the case anymore as Pakistan, being under an IMF programme, will be unable to tinkle with trade controls.

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On the other hand, despite being an agri-based economy, the agricultural sector, which contributes approximately 23 percent to the country’s GDP, remains infested with issues such as below-par productivity, and a decline in cultivatable area. As a result, Pakistan is compelled to import agricultural products amounting to billions of US dollar.

More so, the cash-starved country remains a massive energy importer, and as per import figures provided by the State Bank of Pakistan, the country purchased fuels worth $17.6 billion in the first eleven months of the last fiscal year, making up over 36 percent of the total imports recorded in the said period.

Thus, the only way ahead is to reduce Pakistan’s dependence on imports and ensure food and energy self-sufficiency, and one means or method to achieve this is through agrivoltaics.

Agrivoltaics, as the name suggests, is a modern approach under which land primarily used for agricultural practices such as crop production is combined with solar energy production.

In agrivoltaics, solar panels are installed above or alongside agricultural crops or livestock, allowing both agriculture and energy production to co-exist and benefit from each other synergistically.

The concept of agrivoltaics originated as a way to address the competition for land between traditional agriculture and solar energy production, and is especially suited to countries like Pakistan, that have high solar energy potential due to its geographical location and abundant sunlight.

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One of the key advantages of agrivoltaics is that it optimises land usage by allowing farmers to generate renewable energy without sacrificing valuable agricultural land, which is crucial for densely populated areas like Pakistan where land availability is limited.

Secondly, various studies show that installing solar panels above crops is actually beneficial for the plants, as solar panels provide partial shade for the crops below, reducing the impact of extreme weather conditions like direct sunlight, heat waves, or heavy rain.

This shading can help control temperature and evaporation rates, which results in improved water retention thus significantly reducing irrigation needs. Certain crops can actually grow better in partially shady conditions i.e. leafy greens, herbs, and some fruits.

Furthermore, the power generated by solar panels can be used on-site to power farm operations or can be fed back into the grid, contributing to the overall renewable energy supply.

Lastly, the increased usage of solar power, a key renewable energy source, can help Pakistan reduce its carbon footprint and meet its climate mitigation goals.

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Pakistan’s growing population and industrialisation have led to an increased demand for electricity, making renewable energy sources such as solar power even more attractive.

The government too, on several occasions, has admitted the importance of renewables as a cheap source of energy essential to achieve industrial competitiveness. It has also stressed initiating an agricultural revolution.

Several agrivoltaic projects are being operated across the world including neighbouring China, and India.

The government should prioritise the development of solar energy and its integration into the energy mix through continued investments, infrastructure development, and policy support to unlock the full potential of this renewable resource, allowing Pakistan to achieve its goal of food and energy security.

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