Techno-economic feasibility of using solar energy in small-scale broiler production

Abstract

Poultry farming is an energy intensive industry necessitating a substantial amount of fossil fuel consumption and leading to elevated operational expenses. This study investigated the economic feasibility of implementing renewable energy in small-scale broiler farms to decrease their dependency on fossil fuels and increase their profit. Assessment was based on experimental data collected from broiler production operations carried out in a green poultry house equipped with solar renewable energy systems and a conventional poultry house operated on conventional energy source. The experiments were conducted during both the warm and cold seasons in a semi-arid rural area in Lebanon. Average annual costs and benefits from broiler operations were calculated based on a total of 8 production cycles/year. Cost-benefit analysis was conducted to assess the viability of introducing renewable energy in broiler production. In addition, a twenty-year financial feasibility analysis was performed for both green and conventional systems using two different time value of money parameters; the Net Present Value (NPV) and the Benefit Cost Ratio (BCR). The results showed that broiler production using conventional energy achieved a total cost of 2.25 % lower than the cost incurred using green energy and higher total revenues of 5.55 %. Negative NPV and less than 1 BCR values were computed for both green and conventional systems demonstrating that broiler production in the study area is non-profitable in small-scale broiler farms, independently of the source of energy. Accordingly, it is recommended to adopt renewable energy cooperatives based on partnership between small-scale farms. This cooperative-based partnership model has proven to allow the adoption of renewable energy sources as sustainable and economically viable approach, contributing to increased farmers' revenues. Government subsidies and financial incentives are also essential to ensure the success and sustainability of the renewable energy cooperatives. © 2023 International Energy Initiative