Agrivoltaic Project

• 01 Apr 2025

Why in News? 

Uttar Pradesh has become the first state in India to adopt an  'Agrivoltaic' project . 

Key Points 

• Agrivoltaic System: 
  • Agrivoltaic systems, also known as agri-voltaic systems or "solar-farming", are a new technology that allows farmers to produce electricity while growing their crops.  
  • In this system, solar panels are installed on agricultural land using photo-voltaic (PV) technology . 
  • This technology was first introduced by  Adolf Goetzberger and Armin Zastrow in 1981.  
    • Its prototype was developed in Japan in 2004 and after several trials, it was implemented in East Africa in 2022. 
  • Presently it is being used successfully in countries like India, America, France, Britain and Germany.  
    • However, this technology is still in its initial stages in India. 
• Benefit: 
  • Addressing the problems of growing energy demand and food security. 
  • Solar panels reduce evaporation from crops and improve water utilization. 
  • Solar panels protect crops from high temperatures and UV rays . 
  • Solar energy reduces the cost of electricity and increases the income of farmers. 
  • Rain water collected by solar panels and used for irrigation. 
• Challenges: 
  • It is a land-based system, requiring about two hectares of land per megawatt generated. 
  • During the rainy season when the sky is cloudy, this system is not as effective, and farmers have to rely on alternative energy sources. 
  • The shade produced by solar panels can sometimes cause plant pests, requiring attention to crops. 
• Funding from ADB: 
  • The Department of Economic Affairs, Ministry of Finance has approved the technical assistance proposal of the State Government titled “Demonstration of Agrivoltaic Projects in Uttar Pradesh”.  
  • Under this, technical assistance of USD 0.50 million (about Rs 4.15 crore) has been approved from the Asian Development Bank ( ADB) . 
  • Uttar Pradesh has become the first state in the country to receive this type of financial assistance from ADB. 
• Importance: 
  • Under this project, solar energy is also produced along with agricultural production on the same land.  
  • This will provide additional income to farmers, increase energy production and promote  sustainable development . 
  • This initiative is an important step towards clean energy production, environmental protection and Sustainable Development Goals (SDGs) . 

Asian Development Bank 

• Introduction: ADB is a regional development bank established in 1966 with the objective of promoting social and economic development in Asia and the Pacific region. 
  • ADB assists its members and partners by providing loans, technical assistance, grants, and equity investments to promote social and economic development . 
• Headquarters: Manila, Philippines 
• Members: It currently has 68 members, of which 49 are from within the Asia and Pacific region and 19 from other regions. 
• ADB and India: India is a founding member of ADB and the bank's fourth largest shareholder . 
  • Supports India's priorities for strong, climate resilient, and inclusive growth, in line with ADB's Strategy 2030 and the Country Partnership Strategy 2023-2027 .