Techno-Economic Assessment of Agrivoltaics in Brazil’s Northeast

Measuring the Potential for Energy Generation, Economic Returns, and Farmer Livelihood Benefits

Abstract

Agrivoltaic systems (AVS) offer a promising strategy to integrate clean energy production with agriculture, particularly in semi-arid regions facing climate stress and rural poverty. This study presents the first comprehensive assessment of AVS potential in Brazil’s Northeast, combining energy modelling, economic analysis, and crop compatibility to evaluate both technical feasibility and farmer-level benefits. A reference overhead AVS design was developed using conservative parameters based on expert input and international guidelines. In a scenario where only 1% of farmers adhere, results show that AVS could generate up to 995 TWh per year, exceeding national electricity demand, with an installed capacity of 418 GWp (almost eight times the current national photovoltaic installed capacity). The Levelized Cost of Electricity (LCOE) ranges from 248 BRL/MWh (livestock systems) to 310 BRL/MWh (crop systems), offering significant savings compared to current grid tariffs (893 BRL/MWh). Beyond cost competitiveness, AVS can support food-energy-water integration, reduce irrigation needs, provide shading for animals and crops, and expand access to electricity. The analysis highlights AVS as a scalable, land-efficient pathway to drive Brazil’s energy transition while enhancing resilience and equity in rural development. Further field trials are recommended to validate crop responses and inform the implementation of effective strategies.