Solar power's appeal rises for Latin America's poultry sector

Investment funding for solar power may be hard to find in Latin America yet some poultry companies are already enjoying its benefits.

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This farm in Panama is now satisfying all of its energy requirements via solar panels. (Courtesy REA Solar)
This farm in Panama is now satisfying all of its energy requirements via solar panels. (Courtesy REA Solar)

Using solar energy in poultry facilities is becoming increasingly appealing in Latin America. Various factors are contributing to the growing interest in solar energy, not least of which is the unreliability of the region’s electricity grid and high energy costs.

In addition to energy costs and unreliable national grids, there are other reasons why using solar energy can be beneficial:

  • It is more secure, alleviating highly variable external energy costs, which can impact the process cost matrix.
  • Possible cost savings, through the generation of alternative energy, wholly or in part.
  • Reducing the carbon footprint within the poultry production process.

The difficulty with national power grids is highlighted by Manuel Buitrago, of Rea Solar, a Spanish solar energy company, who says: “Governments do not invest enough in infrastructure to generate electricity and, in the end, this translates into blackouts.”

Photovoltaic energy, he believes, can alleviate this problem.

Solar energy’s advantages

Compared with other renewable technologies, solar energy has a much quicker return on investment and, according to Buitagro, it is projected at between five and six years at the most.

Among solar’s other advantages are that the technology is not a major source of heat, nor does it emit any kind of gas, has no moving parts and is perfectly suited to poultry production as it can be installed near production sites.

Additionally, it is compatible with other types of technologies. Due to power grid conditions in Latin America often being unstable, producers go through power outages and need to run diesel generators. Solar energy can simply be added to the existing power mix.

Pandemic’s cost and impact

Transportation logistics, and the recent increase in the cost of raw materials, such as aluminum and silicon, have hindered the manufacture and sale of solar panels. There are now problems with panel supply, along with higher infrastructure and cable prices, which impact the final sale price.

All of these factors, together with the impact of the COVID-19 pandemic on the poultry industry have delayed some solar projects, but they have not stopped.

A number of installations are already up and running, for example, including in Panama, Honduras and Colombia.

“Producers are now more encouraged, the outlook is changing, and poultry entrepreneurs are more confident. Next year is going to be good for the sector for installations,” Buitrago said.

The solar energy market has evolved significantly since the start of the century. Driven by economies of scale and adopting more sophisticated manufacturing processes, the cost of panels had, up to three years ago, reduced by 50%. Now, however, costs are back to 2016 levels.

Panama: An example to follow

Financing for solar energy, which requires considerable investment, can be a significant barrier, especially in Latin America, as the market for financing such projects is yet to mature.

There are, however, exceptions.

“Panama is a very different story and an example of what can be done correctly,” said Buitrago, adding that REA Solar has several projects in the country.

According to solar energy company IRC Panama’s Miguel Ángel González: “Self-supply projects in Panama have evolved favorably because energy is expensive, there is access to financing at low annual interest rates of 2-4%, and the fact the resource is plentiful.”

In Panama, solar power has also become attractive to poultry producers due to the regulatory framework. The net balance, or electricity left over at the end of the day, is recognized by electricity companies at the same value that it would be sold to the producer. Therefore, return on investment is fast.

A local poultry producer, for example, is now successfully working with solar power. It has three broiler houses, each with a maximum capacity of 30,000 birds, and producing five flocks per year. Working with Panama’s net balance scheme, the farm has managed to satisfy 100% of its energy requirements and has become a reference for the region.

One of the country’s largest poultry producing companies is also planning to install panels at its breeding farm and processing plant.

Partnership approach in Colombia

Without making a direct investment, Cargill has secured a supply of photovoltaic energy for its Pollos Bucanero chicken processing facilities in Villagorgona, Colombia, for the next 10 years by working with renewable energy company Celsia. The processing plant receives its electricity from Celsia’s neighboring solar farm El Carmelo.

The Villagorgona plant processes up to 180,000 broilers a day, equivalent to 55 million kilos of meat a year. The El Carmelo solar farm supplies 100% of the complex’s operational requirements during daylight hours, while energy from Celsia’s wind and hydroelectric facilities, feed the plant at night.

According to Celsa, the El Carmelo solar farm required an investment of around US$10 million for the installation of 33,000 solar panels with a capacity to generate 9.8 megawatts annually of electricity, of which 4.5 megawatts goes to Cargill. This meets 39.3% of Cargill’s energy needs.

Each megawatt generated prevents the emission of 640 metric tons of CO2 a year – the equivalent of planting 106,136 trees.

Celsia additionally supplies other production facilities owned by Cargill in Colombia.

Honduras hatchery

Cargill de Honduras has installed a photovoltaic solar park at its hatchery in Villanueva, Cortes. The project forms part of Cargill’s sustainable operations objectives, and its goal of a 10% reduction in emissions for its global operations by 2025.

The hatchery’s photovoltaic energy park is able to supply 34% of the energy needed to operate the site. It consists of 1,700 solar panels, each able to generate 445 watts per hour. They are installed at ground level and placed at a 15-degree angle facing south to absorb the maximum radiation.

This new solar power system produces 1.19 million kWh per year. This allows for a reduction over the same period of 417 metric tons, equivalent to planting 47.32 hectares of forest.

Can solar projects really work?

The feasibility of using photovoltaic energy on poultry facilities needs careful consideration. Its success in Panama highlights the need to have the right legal and regulatory framework.

Other important points for consideration are the environment and weather. Building a solar plant in the northern- or southernmost countries would not be the same as building a solar plant in Panama. Solar radiation, temperature and wind can all be highly variable.

The cost of energy, which has a clear tendency to increase, also needs to be considered.

Solar projects with batteries need to be considered, offering the possibility of using battery-stored excess solar energy through an automated control system. Combining direct solar power with battery-stored power can also help in reducing electricity bills.

While factors such as geopolitics and pandemic may disrupt the overall market, where the technical side of solar power is concerned, manufacturers continue to make improvements.

González notes: “Two years ago, panes had not reached 400 watts. Today, they have reached 560 watts.”

This means that less space is required to generate more power.

Rea Solar, for instance, is trying to integrate other technologies, such as energy storage, into its technology. Integration of storage technologies for future use would be beneficial not only in cases of power outages, but also to help regulate demand.

Buitrago notes: “With batteries, you can operate a system to regulate use of national grid power and the electricity bill is lowered.”

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