Developing an Innovative Solar Irrigation Business Case in Gaza Province
Developing an Innovative Solar Irrigation Business Case in Gaza Province
Project Approach
In Mozambique, more than 60 % of the population lives in rural areas and is heavily dependent on the agricultural sector. The rural electrification rate is only 3.8 % (2021), meaning that many smallholder farmers rely on expensive and polluting diesel pumps to access water for irrigation, or on unpredictable rain-fed irrigation. In Limpopo, Gaza Province, the Limpopo Sand River is known for its shallow, year-round groundwater availability, providing a sustainable and reliable water supply. The water is currently inaccessible for irrigation and is lost to the ocean. Solar irrigation can provide a clean and potentially costeffective solution to accessing this water and increasing agricultural production.
Green People’s Energy (Grüne Bürgerenergie, GBE – GIZ) is supporting the Practica Foundation to develop an innovative solar irrigation business case in Gaza province, based on previous experience. Practica has developed a technique that allows local enterprises to install affordable well points for individual farmers. By connecting the well point to a low-cost irrigation system (including a small solar pump) the water from the wells can be used for farming activities. In order to make this a functioning overall concept, the project approach includes various activities: Selection of Mozambique-based partners interested in offering integrated pump and irrigation solutions, planning and stakeholder involvement, training and equipment delivery for selected local drilling teams, familiarizing farmers with the Pay As You Go (PAYGO) approach (see explanation below), monitoring and planning for upscaling. A crucial part of the project are various capacity building measures. Together with the solar equipment supplier SolarWorks! Mozambique, Practica trains the farmers who purchase the solar-powered irrigation systems (SPIS). Practica also trains local drill enterprises, solar pump supplier technicians, extension workers and teachers of educational institutes.
The plan is that 100 farmers purchase SPIS while receiving subsidies from GIZ. In order to test the demand and willingness to pay of the potential clients, the concept foresees the reduction of subsidy level: early birds receive 70 % subsidy, while the second half could only count with 50 % subsidy. Entering a new market, this allows to provide a special incentive for the first clients. The farmers pay their own contributions on a PAYGO basis for a 24-months contract period. This means that farmers do not have to go into debt, but can gradually pay off their SPIS in instalments (e.g. after they have been able to generate money through crop sales).
Methodology of Data Collection
The data for this case study report was collected through a project document review, five qualitative interviews with representatives of GIZ, Practica, SolarWorks! Mozambique and two farmers, as well as and a quantitative survey among 50 training participants, 29 of whom responded (of which 24 % are women). In addition, the project monitors the financial impacts on the famers by IHE DELFT (Netherlands Water Research Education Institute). There were several rounds: an intake survey, continuous field visits throughout the cropping season, a final survey at the end of the first season and a more detailed evaluation of the profits with a limited number of surveyed farmers (8) over the full last season (2022). In addition, Practica conducted an impact assessment survey with 31 farmers (23 % of whom were women). Results of all surveys are presented below. The case study was conducted between March and August 2023.
Key Findings
Project Achievements
In total, 111 people were trained in different topics, including: agriculture, SPIS, drilling techniques and related topics. Of these, 50 were selected to take part in the survey, including 21 technicians trained in SPIS, 7 in drilling, and 22 extension workers and teachers trained in agriculture. The drilling companies have also been successfully equipped. 90 % of the training participants report in the survey that they are using the training knowledge they acquired in their respective jobs (see figure 1). The application of learned knowledge is also reflected in improved work performance (see figure 2). This gives reason to believe that the trainings were valuable in contributing to good quality installations, including the installations of the subsidised SPIS. 100 farmers have taken advantage of the incentives offered and are using the installed SPIS with maximum power of 360 W.
Of these, 50 purchased a SPIS with 70 % incentive vouchers and the remaining 50 bought the SPIS with 50 % incentive. All the farmers were trained on the use of the systems. According to interview partners the provision of the SPIS has been a game-changer for the crop production. Thanks to this innovative solution, farmers no longer have to rely on the tedious and time-consuming task of manually irrigating their crops using a can or bucket. The SPIS have saved farmers many hours of work and extended the scope of crop cultivation beyond what was previously possible. Thanks to the irrigation systems, horticulture crops such as bananas, papaya, and vegetables can now be easily cultivated.
Producers have started to focus on short-cycle vegetable crops like
lettuce, cabbage, kale, etc., which require more frequent watering.
Some crops require daily irrigation, or even twice a day during the
sunny season.
Apart from increased crop diversity, farmers can now also grow
crops year-round, even during the hot and dry seasons. A Practica
report reveals that 68 % of farmers use their SPIS frequently.
A financial evaluation of a full season was not possible, since the
solar pump was introduced mid-way or in some cases at the end
of the 2022 season. However, fuel costs still covered 14 % of the
seasonal input costs, indicating the significant contribution a solar
pump can make to reducing the running costs of the farm.
Most farmers in the study make an average profit of approximately
€ 1,050 over a dry season, with significant variation (between
€ 50 and € 3,000). The most profitable farm specialized in cash
crops, while the least profitable focused on subsistence farming.
The majority likely falls into the middle category with diversified
crops for income and own consumption.
In terms of payment the supplier offered flexible instalment
options. Most farmers chose to make payments every 3 months
(27 %) or 6 months (53 %), with amounts typically ranging between
€ 44 – 74 or € 74 –148, respectively. Initially, the first instalment
was often covered from personal savings, followed by income
from existing farm activities, while subsequent payments mainly
relied on farming income (88 %).
Intermediate Impact
Overall, the SPIS have been essential for enhancing agricultural
productivity. Thanks to the systems, farmers can now focus on
other aspects of their work, such as pest control and soil management,
instead of time-consuming manual irrigation. Those who
previously relied on generators for their irrigation needs, benefit
from significant cost savings. It enabled them to reduce production
costs related to fuel powered pumps. Fuel is quite expensive
and it is time-consuming to buy it on a regular basis. By replacing
the use of generators with a more efficient and cost-effective
system,
farmers are able to reduce their expenses and increase
their overall profitability. This switch has not only benefited
farmers financially, but has also had a positive impact on the
environment by reducing carbon emissions.
Interviewed end-users stated that the SPIS is leading to improved
overall well-being for themselves and their families. With the
ability to grow a wide range of vegetables, they can provide their
families with a more balanced and healthier diet.
Moreover, the income from the sale of these crops has helped
an interviewee’s family to meet basic needs such as health care
and education for their children.
At the time of the Case Study, comprehensive quantitative data
on the effect on farmer income was not yet available. However,
statements
from the qualitative interviews suggest that the
installation
of SPIS has improved reliable access to water and
the quality of life of farming families.
Although the training for technicians, drilling companies,
extension
workers and teachers of educational institutions
was primarily aimed at improving the quality of installations,
participants
noted improved professional qualification as an
individual benefit. Based on the findings of the survey, it has
been revealed that 31 % of trainees reported an increase in their
income due to improved professional qualification (figure 3).
