Renewable Energy in Agriculture: A Study on Energy Consumption and Efficiency

Strategic Insights -

A new study published in the Frontiers in Energy Research journal has provided insights into the energy consumption patterns of the agricultural sector in Iran. The research aimed to quantify the energy required for irrigated and dryland wheat production in five large wheat-producer provinces, estimating the economic value of each unit of energy input. The study found that renewable energy in dryland wheat production has a greater economic value than non-renewable energy in irrigated wheat production, with the exception of the Kermanshah province. The findings also revealed that the economic value of energy in wheat production decreased after the implementation of the Targeted Subsidies Reform Act, but raising the energy price led to a shrinking of farmers' profit margins.

Key Takeaways:

  • The agricultural sector has become more resource-hungry and energy-intensive due to the need to produce more food for a growing population.
  • The study estimated that the average marginal product and economic value of renewable energy in dryland wheat production is greater than the marginal product of these inputs in the production of irrigated wheat across all provinces.
  • The average Value of Marginal Product (VMP) of non-renewable energy in irrigated wheat production is greater than the corresponding amount in dryland wheat production, with the exception of Kermanshah.
  • Renewable energy in dryland wheat has an equal economic value of 0.18 USD/ha with non-renewable energy in irrigated wheat production.
  • The VMP of energy contributes to about half of the price of wheat.
  • The economic value of energy in wheat production became lower after the implementation of the Targeted Subsidies Reform Act.
  • Raising the energy price simply led to a shrinking of farmers' profit margins; no improvements were achieved in the economic value of energy.

Statistics:

  • The energy consumption of the agricultural sector increased by under 20% from 2001 to 2019.
  • Renewable energy in dryland wheat production has a VMP of 0.18 USD/ha.
  • Non-renewable energy in irrigated wheat production has a VMP of 0.12 USD/ha in Kermanshah province, but 0.08 USD/ha in other provinces.
  • The VMP of energy contributes to about 50% of the price of wheat.

Sources:

  • Harvesting energy's worth: an economic assessment of energy at wheat farms. Frontiers in Energy Research, 2025, 13. (Frontiers in Energy Research - http://www.frontiersin.org/energy_research).
  • University of Tehran, Department of Agricultural Economics, Karaj, Iran.
  • NewsRx. Study Data from University of Tehran Provide New Insights into Renewable Energy (Harvesting energy's worth: an economic assessment of energy at wheat farms). Ecology, Environment & Conservation. August 29, 2025; p 485.