Australia Launches AU$13 Million Floating Solar PV Initiative to Enhance Water Conservation and Renewable Energy in Agriculture

The AU$13 million floating solar PV initiative launches in Australia
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A five-year research initiative has been launched in Australia to explore the feasibility of floating solar photovoltaic (PV) systems on irrigation dams. This project, titled ‘Novel Energy and Evaporative Storage Technologies for Irrigators’ (NEESTI), aims to address water conservation challenges while generating renewable energy for the agricultural sector. The initiative has received AU$6 million in funding from the Federal government’s AU$5 billion Future Drought Fund’s Resilient Landscapes program.

Led by the economic consultancy AgEcon Australia and supported by the Cotton Research and Development Corporation (CRDC), the floating solar project seeks to tackle two pressing issues facing Australian agriculture: water security in an increasingly hot and dry climate, and the necessity to reduce carbon emissions.

### Benefits of Floating Solar Implementation

Research conducted by the CRDC indicates that nearly 50% of on-farm water storage is lost annually due to evaporation, underscoring the urgent need for innovative solutions such as floating solar systems. If Australia were to convert just half of its current 16.6GW ground-mounted solar capacity into floating solar installations on water storages, it could potentially save 296 gigalitres of water annually while simultaneously generating renewable energy.

Floating solar technology also offers the added advantage of freeing up valuable land for other essential infrastructure, such as buildings and farming, thereby creating a dual-purpose solution for the agricultural sector.

### Research Goals and Implementation Strategy

Jon Welsh, principal climate analyst and economist at AgEcon, stated that the floating solar project aims to address Australia’s ‘critical trilemma’ of securing water, food, and clean energy. “We know floating solar projects can work, but significant challenges remain, particularly in developing practical and cost-effective solutions ready for implementation on farms,” Welsh explained. The research program is designed to deliver technical, economic, policy, and legal frameworks to establish a sustainable floating solar PV market tailored specifically for cotton growers and other irrigators.

### Market Opportunities and Industry Impact

This floating solar research initiative comes at a pivotal time as agricultural supply chains are under increasing pressure to lower emissions in order to meet both national and sector-specific targets. The CRDC describes the project as a “win-win” for Australian agriculture.

Notably, Canopy Power Australia and Ocean Sun, a Norwegian company specializing in floating solar technology, formed a partnership earlier this year to expedite the deployment of a new generation of floating solar solutions across Australia’s water bodies.

### Southeast Asian Expansion of Floating Solar Technology

Southeast Asia has emerged as a key region for the deployment of floating solar PV systems worldwide. In early 2024, research firm Rystad Energy predicted that Southeast Asia would add approximately 300MW of new floating solar capacity. Following this, SolarDuck and Tokyu Land constructed the first floating solar project in Japan. In August 2024, Malaysian energy company Cypark Resources Berhad launched a 100MW hybrid project, which includes 35MW of floating solar PV, in the coastal town of Merchang, Terengganu.

Additionally, floating solar technology is gaining traction in countries like India and China, with major projects coming online, including a 1GW floating solar installation completed by the state-owned China Energy Investment Corporation (CHN Energy), touted as the largest of its kind in the world.

Floating solar PV is not only being explored in Southeast Asia but also in Europe. Recently, Q Energy, a German-based energy service provider, and independent power producer Velto Renewables inaugurated Europe’s largest floating solar PV power plant, which boasts a capacity of 74.3MWp, located in the Haute-Marne region of France.