Virtually all energy demand comes from lighting and moisture/climate control. The electricity required to grow lettuce indoors is more than 10 times higher than in a conventional heated greenhouse in temperate climates per unit of growing area, according to Wood Mackenzie figures.
Energy costs curb profitability
Flowering fruits and vegetables, in contrast, require far greater light intensity to grow indoors. Profitability is hence a huge challenge in regions of high electricity tariffs, given that the ordinary consumer is not prepared to pay dearly for his lettuce.
The predictable load of indoor farms can help. A typical indoor farm operates on 18 hours of daily ‘sunlight’ and 6 hours of ‘night’ to replicate natural conditions. During the ‘night’, electricity demand reduces by around 75 percent, allowing farms to avoid peak grid load and prices. Indoor farms can provide grid stability and off-peak demand while also being sustainable by using cheap renewable electricity, soaking up solar and wind that would otherwise be curtailed. But only in the right locations, cautioned Wood Mackenzie Asia Pacific Vice Chair, Gavin Thompson.
Striving to automate processes
Indoor farming remains in its infancy and the focus is clearly on reducing costs. With an increased focus on data and automation, ‘second generation’ indoor farms claim to already be yielding over 50 times as much produce per unit of growing area compared to conventional farming.
Among the indoor farming pioneers, US-based Plenty claims its projects use 99 percent less land and 95 percent less water to grow pesticide-free food. These are bold claims, but companies argue that through technology, particularly AI and data analytics, farming is being transformed.
The source of electricity is critical to long-term sustainability. Singapore has a target of 30 percent of its food to be grown at home by 2030, but only about 2 percent of the country’s electricity will come from renewables by this time.