20220531-IRENA-Powering_Agri-food_Value_Chains_with_Geothermal_Heat_A_Guidebook_for_Policy_Makers_96页_3mb

Summary: Powering agri-food value chains with geothermal heat

This IRENA guidebook aims to scale up geothermal heat deployment in agri-food systems, supporting sustainable development and climate action.

Introduction

• Geothermal energy offers reliable baseload power and heating solutions for agri-food applications, enhancing food security, reducing waste, and increasing productivity.
• Direct-use applications (greenhouse heating, drying, aquaculture, processing) are reviewed across multiple regions.

Guidelines

1. Mapping: Identify and map geothermal resources and co-locate them with energy demand using GIS platforms.
2. Policy/Regulatory: Develop clear licensing procedures, enabling policies, heat tariffs, and fiscal incentives.
3. Sector Alignment: Implement cross-sectoral planning and multi-stakeholder engagement to leverage synergies.
4. Project Development: Employ suitable project models (standalone, cascaded, integrated) and define ownership structures.
5. Financing: Utilize grants, risk mitigation funds, favorable loans, and encourage partnerships through mechanisms like HPAs (Heat Purchase Agreements).
6. Capacity Building: Raise awareness, provide technical/business training, and build institutional capacity.
7. Innovation/Leveraging Sustainability: Promote cascaded systems, circular economy principles, and incubation for new geothermal products/processes.

Optionality and Risk Considerations

• Carefully select geothermal resources matched to specific application demands.
• Address challenges like data scarcity, regulatory hurdles, high upfront costs, and lack of awareness.

Measuring Socio-Economic Impacts

• Apply methodologies like INVESTA cost-benefit analysis to quantify environmental benefits, income generation, employment, and other indicators tied to geothermal deployment, accounting for both monetized and non-monetized factors.

Tariff Methodologies

• Explore cost-based and market-based approaches for establishing viable heat tariffs, considering investment returns and competitiveness against alternatives.

Case Studies
Illustrative examples of successful geothermal deployment in agri-food sectors in New Zealand, Iceland, Kenya, Mexico, and others.

**Summary Outcomes**
The guidebook provides a roadmap for policy makers through seven priority action areas, emphasizing robust data, clear regulations, inclusive planning, sustainable project structures, accessible finance, capacity development, and technological innovation to unlock geothermal potential in agri-food value chains.