Powering Agriculture: An Energy Grand Challenge for Development

Overview

In 2012, the United States Agency for International Development (USAID), the Government of Sweden, the Government of Germany, Duke Energy Corporation, and the United States Overseas Private Investment Corporation (OPIC) (collectively, the “Founding Partners”) joined together to launch and fund this multiyear Call for Proposals (CFP) for Powering Agriculture: An Energy Grand Challenge for Development (PAEGC)

The objective of PAEGC is to support new and sustainable approaches to accelerate the development and deployment of clean energy solutions for agriculture productivity and/or value in developing countries. Such approaches are designed to integrate clean energy technologies and innovative business models to: (i) increase agricultural yields; (ii) decrease post-harvest losses, (iii) enhance farmer and agribusiness income generating activities and revenues; (iv) increase energy efficiency within farms and agribusinesses, and (v) stimulate low carbon local and regional economic growth within the agriculture sector of developing countries.

The Grand Challenge for Development model is designed to focus global attention on specific, narrowly defined international development problems, and to facilitate solving them. Grand Challenges encourage solutions that build on physical and social science research and technological advancements, and engage new actors that might otherwise not receive support through traditional international development programs. Importantly, the model supports solutions with the potential to achieve scale in low resource settings by, among other things, leveraging commercial investment and financing.

Identifying the Problem

Powering Agriculture: An Energy Grand Challenge for Developmentcatalyzes resources and focuses attention on the problem that many farmers and agribusinesses in developing countries lack access to reliable, affordable, and clean energy services. This limits their ability to adopt modern agricultural practices, increase food production, improve efficiency of their operations, and benefit from broad-based, low-carbon economic growth. As the global population steadily increases, substantial agricultural intensification will need to occur – which is intrinsically tied to an increase in energy demand. Along the value chain – from obtaining agri-inputs, planting, irrigation, and harvesting to processing, transportation, and storage – there are opportunities for increased use of clean energy technologies to enhance agriculture production and value. Not only is there an identified need for technology development, but also for creative approaches to bring clean energy innovations to commercial scale.

Barriers to Growth

The Powering Agriculture Founding Partners recognize that many agrarian communities face substantial barriers in incorporating clean energy solutions in their operations. Often farmers are not aware of what technology is available – or the technology that is available does not match the performance characteristics or price points required in emerging markets. Further, there are seldom appropriate financing mechanisms in place to assist agribusinesses cover the relatively high up-front capital costs of new technology.

Rising to the Challenge

Launched in 2012, Powering Agriculture draws on the financial and technical resources of its contributors to promote innovation within the clean energy/agriculture nexus. Powering Agriculture supports the design and expansion of sustainable business models that link clean energy enterprises with farmers and agribusinesses in developing countries. This is achieved by:

• Providing small grants ($500,000 - $1,500,000) to for-profit, non-profit, and academic entities to design, pilot, and deploy clean energy solutions that are responsive to the identified demands of select agricultural value chains.
• Leveraging funds for a global financing facility to provide guarantees to encourage private sector equity and debt investments within the clean energy/agriculture space.
• Identifying and supporting clean energy solutions that can be brought to commercial scale, and integrated within regional/national agriculture production and food security programs.
• Hosting an online knowledge management platform to document lessons learned, promote effective technologies and business models, and foster continued engagement among stakeholders interested in exchanging ideas about the clean energy/ agriculture nexus.

Further Information

To learn more about Powering Agriculture’s partners, projects, and ongoing/planned activities – and to contact us to request any further information – please visit www.PoweringAg.org