Improving Agricultural Profitability with Solar Powered Mobile Cold Storage for Small
Introduction
| Partners: | People Energy and Environment Development Association (PEEDA) https://peeda.net/ |
| Location: | Ward No. 3, Baiteshwor Rural Municipality in Dolakha district, Nepal |
| Technology: | Solar PV, Cold Storage |
| Costs: | Total: 42.145 €
WISIONS financial support: 34.250 € |
| Duration: | November 2017 – August 2019 |
Small-scale farmers in Nepal typically sell their produce immediately after harvest, exposing them to fluctuating market prices. The availability of accessible cold storage facilities has the potential to boost income and enhance the overall livelihoods of these farmers. The primary objective of this project was twofold. Firstly, it aimed to construct a demonstration unit showcasing the feasibility of solar-powered cold storage units, specifically tailored for small farmers in off-grid Nepalese communities. The intention was to disseminate this knowledge to fellow farmers and governmental institutions. Secondly, the project sought to enhance the livelihoods of small farmholders in Ward No. 3 of Baiteshwor Municipality through a holistic approach that acknowledges the entire value chain.
Technology, Operations & Maintenance
PEEDA collaborated with a local solar company to plan and construct the solar-powered cold storage unit. The facility features a battery-less refrigeration system, complete with a specially designed compressor, air cooling, and a thermal storage system. It has the capacity to store up to 5 metric tons, is equipped with mounted 5 kW capacity solar panels, and can maintain a minimum temperature of 2°C. In instances of insufficient sunlight, the system can provide a backup for up to 24 hours.
To ensure smooth operation, an elected operator underwent training to manage and maintain the system. The key responsibilities include coordinating the collection of produce in close collaboration with local farmers, keeping the solar panels free of dust, and regularly checking the battery water level for optimal performance.
Delivery Model & Financial Management
From the outset, close consultations with all relevant stakeholders, particularly local government representatives and farmers' collectives, played a crucial role in shaping the project. Building upon these initial discussions and further analyses of local conditions, establishing robust market linkages emerged as a pivotal aspect of the project.
To address this, a management committee consisting of seven members from diverse professions was established. This committee was tasked with appointing a system operator. Together, they collaborate to determine the optimal times for neighboring smallholder farmers to deposit their produce. Subsequently, the committee engages a retailer with a comprehensive understanding of the market, who then sells the products at nearby markets located 20km and 40km away, fetching favorable prices.
The generated earnings are returned to the farmers, with a deducted share allocated to cover the costs associated with the retailer and the operator. Furthermore, a jointly developed payment scheme ensures that all households benefiting from the project contribute to its implementation and maintenance through a periodic tariff collection.
Environmental Issues
The cold storage system significantly extends the shelf life of fruits and vegetables for several weeks, leading to a notable reduction in post-harvest losses. Another environmental consideration is the utilization of renewable energy. By powering the cold storage unit with solar energy, emissions that would otherwise be released when using a fuel-powered generator are effectively saved.
Social Issues
Nearly 50% of the communities in Ward No. 3 in Baiteshwor belong to underprivileged ethnic groups, as officially recognized by the Nepalese government. To address this, the established management committee prioritizes social and gender representation.
Additionally, the project focused on enhancing local capacities. Members of the management committee underwent training in effective community mobilization, basic accounting, and bookkeeping. Furthermore, during the installation phase, the local operator received training to proficiently operate the cold storage system and independently handle troubleshooting tasks.
Results & Impact
Once the cold storage unit was set up and operational, all farmers reaped the benefits of the technology, as it extended the shelf life of their products, enabling sales during the off-season. Coupled with the advantage of selling goods in larger batches through an experienced retailer, their income surpassed previous levels. PEEDA observed a remarkable reduction in food waste, exceeding 50% compared to before. Additionally, the system provided incentives for increased agricultural production, offering assurance to farmers that their products would find a market, thus creating further employment opportunities.
A pivotal aspect of the project involved organizing a techno-social know-how dissemination workshop. Approximately 70 experts from civil society, the private sector, agriculture, renewable energy, and government representatives participated, exchanging valuable insights. The conversations among them continued long after the workshop, contributing to sustained collaboration and knowledge-sharing.
Replicability
Nepal's agricultural landscape presents significant potential for the widespread implementation of cold storage technology across various regions. To share the outcomes of this project, PEEDA plans to organize visits for pertinent stakeholders, with a special focus on government agencies. The government's role will be pivotal, especially in financing the units, as they entail a substantial upfront investment. It is recommended that governmental funding schemes subsidize approximately 50-60% of the investment costs to facilitate broader adoption.
In addition, PEEDA has developed a brochure aimed at local farmers. This resource illustrates proper farming practices, emphasizing the potential benefits of integrating cold storage solutions into their agricultural processes.
Lessons Learned
Throughout the installation process and in the post-installation phase, we encountered various technical challenges. Specifically, during the monsoon season, there were insufficient sunny days to maintain a consistent temperature in the cold storage unit. To address this issue, the unit was connected to the grid to ensure continuous operation. As a recommendation for future projects, it is advised that cold storage units are designed as hybrid systems, allowing for reliable functionality regardless of weather conditions.
Additionally, it became evident that the system requires continuous maintenance, including monitoring the lifespan of the solar batteries, addressing deteriorating pipes, and refilling refrigeration gas. It is crucial to account for these maintenance costs from the project's inception.
To fully harness the potential of cold storage technology, integrating it with advanced farming practices and technologies, such as drip irrigation and plastic tunnels, proves beneficial. This integrated approach enables farmers to generate higher surpluses and optimize the overall effectiveness of the cold storage system.
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