Floating solar farms: The future of solar energy

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  Quantumrun Foresight
• August 2, 2023

Insight highlights

Global targets aim to have renewable energy account for 95 percent of the growth in power supply by 2025. Floating Solar PV Farms (FSFs) are increasingly utilized, particularly in Asia, to expand solar energy production without using valuable land space, providing numerous long-term benefits such as job creation, water conservation, and technological innovation. This development could lead to significant shifts in the global energy landscape, from geopolitical changes driven by less dependence on fossil fuels to economic and social transformation through cost savings and job creation.

Floating solar farms context

To help reduce pollution from greenhouse gases, goals have been set worldwide to ensure that new types of renewable energy can provide up to 95 percent of the growth in the world's power supply by 2025. New solar energy production is expected to be the primary source of this, according to the International Energy Agency (IEA). So, setting up new solar power systems, supported by environmentally friendly financing, will be a central concern in the future. 

However, solar energy production mainly occurs on land and is spread out. But, solar power systems that float on water are becoming common, particularly in Asia. For example, the Dezhou Dingzhuang FSF, a 320-megawatt facility in China's Shandong province, was established to lower carbon emissions in Dezhou. This city, home to around 5 million people and often called the Solar Valley, reportedly gets about 98 percent of its energy from the sun.

Meanwhile, South Korea is working on creating what's expected to be the world's largest floating solar power plant. This project, located on the Saemangeum tidal flats on the country's west coast, will be able to produce 2.1 gigawatts of electricity. According to the energy news site Power Technology, that's enough power for 1 million homes. In Europe, Portugal has the largest FSF, with 12,000 solar panels and a size equivalent to four football fields.

Disruptive impact

Floating solar farms offer many long-term benefits that could greatly shape the future energy landscape. These farms make excellent use of water bodies, like reservoirs, hydroelectric dams, or man-made lakes, where land development is not viable. This feature allows for preserving valuable land space for other uses, such as agriculture, while expanding renewable energy capacity. It's especially advantageous in densely populated or land-scarce regions. Additionally, these floating structures reduce water evaporation, preserving water levels during drought. 

In addition, FSFs can contribute to local economies. They can create jobs in manufacturing, installation, and maintenance. Moreover, these farms can reduce electricity costs for local communities. At the same time, they present opportunities for innovation and technological development, from improving panel efficiency to enhancing floatation and anchoring systems. 

Countries will likely continue to build even larger FSFs as the technology advances, providing more jobs and cheaper electricity. A study by Fairfield Market Research, based in London, reveals that as of May 2023, 73 percent of the money made from floating solar comes from Asia, leading the global market. However, the report forecasts that due to policy incentives in North America and Europe, these regions will see significant expansion in this sector.

Implications of floating solar farms

Wider implications of FSFs may include: 

• Cost savings due to the decreasing costs of solar technology and the lack of need for land acquisition. Additionally, they could offer a new revenue stream for owners of bodies of water.
• Nations that can effectively harness solar energy reducing their dependence on fossil fuels and the countries that export them, which could shift power dynamics globally.
• Communities becoming more self-sustaining through localized energy production. Moreover, the increased use of renewable energy could stimulate a more eco-conscious culture, encouraging further sustainable practices.
• Advancements in photovoltaic technology, energy storage, and grid infrastructure leading to a more efficient and resilient energy system.
• Increasing demand for workers skilled in renewable energy technology and less demand in traditional energy sectors. This shift could require retraining programs and green energy education.
• Fish populations being affected by changes in water temperature or light penetration. However, with proper planning and environmental assessments, negative impacts can be minimized, and these farms can even create new habitats for birds and aquatic life.
• Large-scale implementation helping manage water resources more effectively. By reducing evaporation, they could preserve water levels, particularly in drought-prone areas.

Questions to consider

• Does your country have floating solar farms? How are they being maintained?
• How else can countries encourage the growth of these FSFs?