Commercial Solar: A Recipe for Success For The Food & Beverage Industry
The next sunrise industry for India in the coming years is going to be food and beverages. In terms of total addition of food output, the industry has surpassed both IT and pharmaceutical sectors. The industry is poised to double in the next ten years and there is a huge opportunity for large-scale investments. It is estimated that during in the next decade, the food and beverage industry will attract phenomenal investments of over Rs 1,40,000 crores.
The next sunrise industry for India in the coming years is going to be food and beverages. In terms of total addition of food output, the industry has surpassed both IT and pharmaceutical sectors. The industry is poised to double in the next ten years and there is a huge opportunity for large-scale investments. It is estimated that during in the next decade, the food and beverage industry will attract phenomenal investments of over Rs 1,40,000 crores.
Some important sub-sectors of the food processing industry are:
- Canning
- Dairy and Food Processing
- Specialty Processing
- Packaged/Convenience Foods
- Frozen Food/Refrigeration
- Thermal Processing
- Fruits & Vegetable Processing
- Fish Processing
- Milk and Milk Products Processing
- Meat & Poultry Processing
- Packaged/Convenience Foods
- Alcoholic Beverages & Soft Drinks
- Grain Processing
- Health food and health food supplements
Range of Application for Solar power in the food and beverage industry
The F&B space is a major consumer of electricity in a large number of diverse applications. These include the provision of drying, filtration, distillation, tempering, refrigeration, and baking. The sector has a large heat demand in the temperature range up to 150°C. Lighting can also consume huge amounts of energy, especially in food processing facilities that operate 24/7.
Other energy intensive processes include:
- pasteurization of liquid commodities
- cleaning of products & production facilities
- cooking in meat processing
- blanching of vegetables or meat
- drying and evaporation fruit and vegetable processing
Benefits of Solar for F & B Space
Solar PPA benefits businesses in three ways, and the food industry is no exception:
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- First and foremost, it gives food and beverage companies control of one of the critical cost variables, power, and provides them a long-term differentiation. Food companies are better positioned to reduce electricity expenses after implementing solar power.
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- Companies within the food and beverages sector that embrace solar opportunities can incur savings on energy from the first month of operation. This is because the solar power system provides electricity at a lower cost per kilowatt-hour than the local utility. To put it another way, food companies don’t have to wait for a payback period to begin saving.
Additional Benefits of a Solar Energy
Improved Corporate Image
Today, consumers are increasingly becoming aware of the environmental impact of many industrial sectors, and this includes food and beverage companies. Solar energy is a 100 percent renewable resource that is not only economically, but also socially, the correct thing to do. Solar power and other renewable energy sources not only save money on energy bills, but they may also help food firms become more ecologically conscious and improve their public image. Food and beverage companies are more likely to form commercial partnerships with clientele who share their values if they go green.
No Harmful Greenhouse Gas Emissions
25% of the global emissions are related to the food industry. By embracing solar, the industry has the choice to be both competitive and also reduce CO2 emissions in atmosphere which are a big threat to our planet. Organic wastes are also generated in large amounts by the food industry provides large amounts of organic waste, creating an increased opportunity to use solar panels. While generating power, solar technology does not use combustion and creates no carbon emissions. Solar panels also take use of enormous rooftop expanses and land extensions of the food and beverage industries. Solar tracking systems can enhance the electricity output of photovoltaic arrays by over 20% in ground-mounted installations.
Increased operational cash flow
Food and beverage companies can maintain efficient production levels while reducing operating costs and satisfying consumer demand for sustainably-produced product giving them a competitive advantage in a highly competitive market. Additionally, businesses can reinvest energy savings in other aspects of their infrastructure. Solar power’s power bill savings can be re-invested to meet other expenses. Food companies can also use the money saved on energy bills to upgrade their process equipment, increasing energy efficiency.
A Secure Investment
A solar PPA also gives savings that aren’t immediately apparent. When a food company gets all of its electricity from the local power grid, it is liable to energy company tariff rises. By running operations on an efficient, renewable source of energy at a predictable rate that is lower than the grid’s cost, all of the kWh price fluctuations imposed by electricity providers are avoided with solar.
Concluding Notes
Taking into account the big share of heat demand, the food and beverage industry has a great potential for the use of solar energy. The early adopters of solar power can build a long-term differentiator for their businesses and a winning proposition in the marketplace. The right move at the right time will undoubtedly create a recipe for the sector’s sustained success in the years ahead.