Cost – Benefit Analysis High-Tech Agricultural Farm Incorporating Solar Energy.pdf

Project overview o Name of the project: High-tech agricultural farm incorporating solar energy © Location: Chien Thang Hamlet, Bao Hoa Commune, Xuan Loc, Dong Nai o Management form: Dire

Trang 1

NATIONAL ECONOMICS UNIVERSITY SCHOOL OF TRADE AND INTERNATIONAL ECONOMICS

COST — BENEFIT ANALYSIS

High-tech agricultural farm incorporating solar energy

Student : Pham Minh Trang

Class : LSIC63

Mã sinh viên : 11215890

Lecturer : Assoc Prof Dinh Duc Truong

PhD Nguyen Dieu Hang Hanoi, 2023

Table of Contents CHAPTER 1: INTRODUC TION Q0 2c nh 1111111111111 xxx ke 1.1 Project 0V€TVICW: LH ng xxx KH KH H111 11k k chư, V2 ODjeCtivess h4 a

Trang 2

1.3 Legal basis: Q.01 1S 9111 1110 111101 1110111110111 121111181111 kkrryu 1 1.4 Necessity of the pr0j€Cf: Q 0L S2 nH TS ng n* ng ng 1 11k, 2 CHAPTER 2: BUSINESS ENVIRONMENT G212 n2 222112122121 1 re 3 PL) 00v i00 1 d4 3 VCJNN( 0.06 nổ a.<- 3 2.1.2 AdmiHistrdfIV€ POHH(ÏIFÍGS ST KH nen KH kh 4 PP ) 0a nhe <eẮaA ää :::5£ĂÊ 4

PT N/ !J186 Ái 1a n6neố.ea 4 VN r ,.‹ 1ann n6 66x eee tee e sae tesaaeenaseeeeseneneaas 5

PT NX/, nẽnnn.em 5 2.2 Social and economic condÏfi0nS - c1 HH HS S12 1111111111111 nh 6 2.2.1 ECOHOHHC COHHIÍ[OHS ĐI SH KH cà, 6 2.2.2 Cultural qHỈ soCidlÏ COHÍÍHOHW, TS TH HH TH kg ka 6 CHAPTER 3: MARKEẾT ANALYSIS LG 2L 211212 HH* HH1 11111111 12 1k, 7 3.1 Situation of agricultural production applying high technology in the world and in

710/7 5 an nh hĐđgẴAúAăẶH,)A 7 1X .,.8 n ae e<e Ả 8 3.2 Some typical high-tech agricultural zones in Vietnam and the world 9 Z7 08/05 0n ố ẦẢ a a.ố 9 3.2.2 High-tech agricultural park in VÏ€ÍHQH à ch nhac 10 CHAPTER 4: PROJECT DESCRIPTION Q0 1 2n ra Ha 12 4.1 Investment scale of the pr0J€cC 0 0211122212221 12021 1111 Hee 12 4.2 Project Inpuf ŸaCÝOFS L n1 1n n SH nnnnTn ng 11g 1111111611115 ke 13 4.3 Output products of the projeCÍ 0L 12221112 1112111211150 21111 tren kkg 14 4.3.1 Grid-connected eÌÏ€CfFiCIẨ? OHÍDHÍ à Q Q Tnnnnnn nh nh v tra th 14 4.3.2 High-tech qgricHlf<rdl proHCS ch nh x1 xxx kg 16 4.4 Personnel structure of the pr0j€CÍ L c1 12v SH nh ghe àu 18 4.5 Technology solutions for the pr0J€CÍ 0022221112221 11 22211182112 ru 18 CHAPTER 5: COST — BENEFIT ANALYSIS cccceceecee cree en eenteeeneees 21 5.1 Total invesmenf and sources 0Ÿ inV€eSfI€NE eect ects eeteeeteeeeeees 21 5.2, Project revenue c“-dddiAđŒ1B ỒỒỀ Ề.ố.ốẽ.ố.ố.ố.Ố 21 5.3 Estimated input expense of the pr0jeCÍ c1 HH nh rau 23 5.4 Ïncome sfafeIm€nI( - L2 1121122111 11111111 1101119111111 111111 1H KH TH kg 25

5.5 9e .':› =Ă 26

Trang 3

h Si 6 na 28

l7 8 16/1766 6< 28 5.6.2 Internal rate return (IRR) cocci HH HT HH k 28 CHAPTER 6: ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT 29 6.1 Environmental impact assessMent 0 00 000cc ccc ccccccensseecesstsececeneneestseseeeeenes 29 J/Vi\ 1/0 1 , 08 n6 6e 29 JXZI/(.1 ,.1 7n e se 30 ,XÂ v0) n e- Á 32 97/78/4, 1: 7/,.0, 0//nn8n8.Ầ.ẦẦẦ.Ầ.Ắ.ẦẮ.aa ĂẼĂẼẼ ố 32 92/2 À(2:4///1.-5///)/) 2./N N00 AadaẢẦ 32 6.2.3 MeqsHres t0 HE HGĐQfU€ HHD(CẾS LH ng nh kh 33 CHAPTER 7: CONCLUSION QQQLnn nn HH 1011011111201 11110110111 trời 34 REFERENCES Tnhh ng HH TH ng ng TH TH TH HH TH 35

Trang 4

List of Figures

Figure l Admmistrative map öo£ Xuan LUOC - c1 0112112111 251151 1152 1111511811118 1 kg 3 Figure 2 Solar plant combined with mushrooms farm in Japan - ‹ - c+-+s+ 5552 9 Figure 3 Solar power plant combined with vegetable ørowing - ccccccccc sec: 10 FIigure 4 Structure of LG Neon® 2 400W 72 cell solar panelL - - ¿2-55 ccsxs+<x+2 14

Figure 5 LG Neon® 2's power absorption capacity compared to other batteries 15

Figure 6 Power output from LG Neon® 2 compared to other batterles 15

Figure 7 The energy generation capacity of LG Neon® 2 is 4.1% higher than others 15

FIigure 8 Pvsyst TRLAL electromagnetic oufput simulation paraimefers - 16

FIigure 9 CGanoderma mushroom and abalone mushroơm ¿- 5 +22 2c + + ‡ssxs2 17 IIT100ã5011009)49)411965140).213156)10))1->5gXiiaaaiaiaÝŸ34ẢẦỀÝÝẢỶ 17 Figure 11 Organizational structure of the pTOJ€CI L2 212v S21 H2 re 18

Trang 5

List of Tables Table 1 Scale and construction area of the project ccc 2 2 12212221122 2xx rớy 12 Table 2 Total investment capital and capital structure ccc ccc cecseeeeeeseees ates 21 Table 3 Annual revenue of the prOJ€CE - L2 1 2211222122211 121 115 2111551111101 111152 key 22 Table 4 Annual deprec1ation - c c 1221112111211 1211 151118111 2111510111115 1kg kn 24 I0 20.tuivy vì 8n .- 25 Table 6 Income statement .eố 25 IE)U:/69.0n0000 0 0 26

Trang 6

CHAPTER 1: INTRODUCTION

1.1 Project overview

o Name of the project: High-tech agricultural farm incorporating solar energy

o Management form: Direct investment, management, operation and exploitation of the project

Trang 7

o Bidding Law No 43/2013/OH13 dated November 26, 2013 of the Parliament of the Socialist Republic of Vietnam

o Law on Environmental Protection No 55/2014/QH13 dated June 23, 2014 of the Parliament of the Socialist Republic of Vietnam

1.4 Necessity of the project

High-tech agricultural zone is a place to focus on applying high-tech research and development achievements to agriculture to perform the following tasks: selecting, creating, and breeding plants and domestic animals for high productivity and quality; prevent and eliminate epidemics; highly effective cultivation and animal husbandry; creating all kinds of machinery and equipment used in agriculture; preserving and processing agricultural products; develop agricultural enterprises applying high technology and develop high-tech services to serve agriculture

Characteristics of production in high-tech agricultural zones: record high productivity and high economic efficiency For example, in Israel, tomato productivity has reached 250 - 300 tons/ha/year, grapefruit yield is 100 - 150 tons/ha/year, and product value 1s 120 - 150 thousand USD/ha/year

For our country, developing high-tech agriculture associated with processing industry and consumer markets is one of the policies of the Party and Goverment Currently, many localities have built and implemented agricultural development programs applying high technology, especially big cities such as Hanoi, Hai Phong, and Ho Chi Minh City and some provinces such as Lam Dong have invested in building high-tech industrial areas with different forms, scales and operating results achieved at many different levels

For Dong Nai province, to implement the policy of promoting industrialization and modemization of agriculture and rural areas, one of the key tasks is to build a sustainable agricultural development towards modernity and application High technology, focusing on the production of key products with high economic value of the province is an urgent requirement

Trang 8

CHAPTER 2: BUSINESS ENVIRONMENT

2.1 Natural condition

2.1.1, Geographic location

—“—: = Ranh git Tinh

——-.-—— Ranh giới huyện

Bio Binh | $710.78 SuốiCao | §49000 | Xuiniioa | si70s1 Ỉ in

Hảo HoàA 18116 Xuân Đông 4890600 Xuân Phú si Đường đất lớn

GiaNay 12434 Xuân Định 133202 XuânTâm !I97614 Đường sắt

Lam San 330484 XuânBảo #16701 Xuân Tây (5266.00 ® Tru sé UBND xa

Lang Minh 1706.90 Xuin Ric 629445 XuânThạnh 6890.00 e as AAD ibaa Sông Ray 343901 XuânHiệp 256861 | XudnTho 372358

Suối Cát 169357 Xuân Hưng 1004479 Xuân trường 477157 Sông, suối

(Biên về theo bản dé hành chính tình Đồng Nai - tỷ lệ 1/100.000)

Figure 1, Administrative map of Xuan Loc Xuan Loc district is located in the southeast of Dong Nai province and is the fourth district in the province in terms of natural area

o The North borders Dinh Quan District

8

Trang 9

o The West borders Long Khanh Town

© The district center at Ong Don intersection is the focal point of important traffic routes in the region, giving Xuan Loc an advantage in developing foreign economic relations with strengths in agriculture, services, industry, and at the same time plays an important role in the economic development of Dong Nai province and in expanding exchanges between Dong Nai and the South Central Coast provinces and Ba Ria Vung Tau province

2.1.3 Topographic

2 main terrain types: mountains and rolling hills

© Mountain: Scattered into independent mountains with steep slopes, accounting for about 6-7% of the entire area, of which the largest is Chua Chan mountain with an altitude of 844m, this is a potential tourist destination of the district, especially after being recognized as a national historical site

© Rolling hill: This is the main terrain type, accounting for about 85% of the total area of the district Popular slopes range from 3 to 80, favorable for agricultural development with famous annual and perennial crops of the district such as: corn; durian; rambutan; mango

2.1.4 Weather and climate

Xuan Loc district is located in the sub-equatorial tropical monsoon climate with the following characteristics:

Trang 10

o Rainfall regime: relatively high compared to other districts in the province The rainy season starts in May and ends around the end of November The most obvious limitation is that there are often short droughts at the beginning of the Summer-Autumn crop

o Sunny regime: usually from November this year to May next year The dry season usually starts from December to April

In general, the climate of Xuan Loc district is very favorable for agricultural development, with few natural disasters such as storms, floods, frost

2.1.5 Using land structure

The agricultural land area of Xuan Loc district is 57,411.85 hectares, accounting for 78.95% of the district's natural land area In there:

® 48.5% of land is planted with short-term industrial crops

¢ 51.5% of rice land

¢ 55.97% of land is planted with perennial industrial crops

e 14.64% of land is planted with fruit trees

® 29.38% of land is planted with other perennial crops

2.1.6 Water source

Xuan Loc has a relatively dense density of rivers and streams, but most of them are short and steep, so their ability to retain water 1s poor and they dry up in the dry season The construction of reservoirs combined with water transfer from outside the region is necessary for socio-economic development, especially for the development of agricultural and industrial production of the district

10

Trang 11

Xuan Loc district is located in an area with poor groundwater On red-yellow soil, groundwater often appears at a depth of 25 - 30m, in other areas groundwater often appears at a depth of 80 - 102m, average flow from 0.5 to 1.2lit/s, good quality Currently, groundwater is being exploited for daily life and irrigation

2.2 Social and economic conditions

2.2.1 Economic conditions

Dong Nai province's economy (GRDP) in 2018 continued to grow high, reaching 8.1% The average GRDP per person is about 104 million VND (equivalent to 4,491 USD) The value of agriculture, forestry and fisheries increased by 4.42%

Domestic investment attraction reached 28,493.1 billion VND, reaching 284.9% of the year plan Foreign direct investment (FDI) reached 1,915.5 million USD, reaching 191.5% of the year's plan

In 2018, Dong Nai province achieved a trade surplus of 2.6 billion USD

2.2.2 Cultural and social conditions

In 2018, the province provided jobs for about 87,302 people, reaching 109.1% of the plan; Health insurance coverage rate 1s over 84.5%

In 2018, we achieved the target of reducing the rate of poor households by 0.3% and reducing the rate of near-poor households by 0.48%

National defense and security work ensures the maintenance of political stability, social order and safety

11

Trang 12

CHAPTER 3: MARKET ANALYSIS

3.1 Situation of agricultural production applying high technology in the world and

in Vietnam

3.1.1 In the world

Currently, Europe especially encourages the trend of applying high technology in agriculture with the Common Agricultural Policy (CAP) program According to recent data, many farmers use the Internet to fill out applications for CAP assistance However, compared to farmers in American countries such as the US and Canada, Internet application in Europe is limited, expensive and not really popular In addition, reasons such as poor infrastructure and the high age of farmers in the "old continent” (only 6% of European farmers are under the age of 35) lead to limited ability to adapt Using technology in agricultural production

In the future, Europe will continue to develop digital infrastructure, as many young people express their willingness to do farming work, but not under conditions like the 90s

of the last century

Besides developed countries, many countries and territories in Asia have also shifted their agriculture from a primarily quantitative approach to high-quality agriculture, applying biotechnology, automation technology, mechanization, computerization to create high quality, safe and effective products Typically, countries in East Asia and Southeast Asia such as China, Taiwan, Thailand In particular, stnce the 1990s, China has paid great attention to developing high-tech agricultural zones Up to now, more than 405 high-tech agricultural zones have been formed, including | national-level zone, 42 provincial-level zones and 362 city-level zones In addition, there are thousands of high-tech application facilities across the country These zones play an important role in the development of China's modern agriculture

The application of high technology in crop cultivation around the world includes:

o Breeding technology

12

Trang 13

o Technology for hydroponics, aeroponics and solid media culture

3.1.2 In Viet Nam

About investment capital

On February 2, 2017, Prime Minister Nguyen Xuan Phuc pressed the button to start the high-tech agricultural production line at VinEco Ha Nam Farm, invested by Vingroup This action shows that the Government attaches special importance to finding solutions to Vietnam's agricultural problem, which is a clean, smart agriculture, applying high technology, and producing according to market requirements

Not only Vingroup, last year, many "giants" poured capital into agriculture, for example: Hoa Phat, Truong Hai, FPT With a completely new way of farming, these pioneering businesses are expected to will completely change the way of agricultural production and the quality of our country's agricultural products

After Ha Nam province, many localities are also planning to call for investment capital in agriculture

13

Trang 14

Besides, the issue of expanding land tenure and land accumulation is the most difficult problem, so at the New Year's meeting, Prime Minister Nguyen Xuan Phuc emphasized the need to increase the support package for investment in high-tech agriculture from 60,000 billion VND to 100,000 billion VND, assigned to the State Bank in the coming time to mobilize banks to have the necessary support credit packages to implement this issue

3.2 Some typical high-tech agricultural zones in Vietnam and the world

3.2.1 Around the world

In Japan

Since the Fukushima disaster, Japan has tried to move away from nuclear energy and towards the production of renewable energy However, a huge obstacle for that is finding large and empty lands to build solar and wind power plants because most of such lands are essential for agriculture in this country

Figure 2 Solar plant combined with mushrooms farm in Japan

The solution is to combine both A new solar project jointly implemented by Sustainergy and Hitachi Capital will combine solar power generation with mushroom farming Accordingly, this project will have a capacity of 4,000kW, and the mushroom farms planted under the solar panels will not waste a large land area that will produce 40 tons of mushrooms annually The reason they choose mushrooms over other crops is because mushrooms can grow well without direct sunlight

In the USA

14

Trang 15

Researchers at the University of Massachusetts are exploring the possibility of growing more crops under solar panels

Figure 3 Solar power plant combined with vegetable growing

The model farm in South Deerfield grows crops like kale, broccoli, and rainbow chard under solar panels

3.2.2 High-tech agricultural park in Vietnam

In Ho Chi Minh City

At the end of September 2011, the Department of Agriculture and Rural Development of Vinh Long province organized a group to visit, study, and exchange experiences on building a high-tech agricultural park in Ho Chi Minh City led by Mr Phan Nhut Ai - Director of the Department of Agriculture and Rural Development of Vinh Long province

is the leader of the delegation

The high-tech agricultural park was built according to Decision No 3534/QD-UB dated July 14, 2004 of the People's Committee of Ho Chi Minh City in Pham Van Coi commune, Cu Chi district with a total area of 88,000 acres 17 hectares, officially put into operation in April 2010 with a total investment of 152,627 billion VND equal to the city budget The high-tech agricultural park is located on the route to Cu Chi Tunnels and 44km northwest of Ho Chi Minh City center, so it is convenient for transportation to the

15

Trang 16

provinces and is built according to an existing, multi-functional model Focus on the farming sector

In Hanoi

Hanoi has implemented a synchronous model: safe vegetable production, integrated disease prevention in raising quality, effective and safe beef and dairy cows Many mechanisms and policies are proposed to be applied along with technical solutions and management measures for high economic efficiency, helping farmers and businesses develop their potential Hanoi has also formed a number of large-scale concentrated specialized production areas with high economic value, with farmers' income and lives increasingly improving; Food production has also increased In addition to quickly harvesting winter crops, Hanoi has planted nearly 92,600 hectares of rice and planted more than 17,090 hectares of spring vegetables for outstanding productivity; Stabilize the total livestock and poultry herd with 138,250 beef cows, 14,420 dairy cows (milk output reached 16,200 tons), 23,620 buffaloes, nearly 1.4 million pigs

Van Duong I luxury flower growing area - Hoa Lien commune, Hoa Vang district, Da Nang

The flower farmers of Van Duong | village have only developed the flower growing profession since 2004 on a small, unstable area, but the socio-economic efficiency brought about by the profession is very high, in 2011 the average profit was 400 million/ha/5 months) Moving to a concentrated flower growing area will create stable conditions for applying high technology and developing sustainable flower growing Van Duong | flower cooperative with 32 members is working well in establishing links with farmer households in providing planting materials, seeds and output markets While the on-site response capacity is currently only about 60 - 70% for regular flowers and 5% for luxury flowers

Developing flower growing areas using high technology not only achieves economic efficiency for farmers but also creates livelihoods for people in relocated areas, contributing to effective crop restructuring

16

Trang 17

CHAPTER 4; PROJECT DESCRIPTION

4.1 Investment scale of the project

The solar power plant project includes solar panels installed on top of prefabricated houses, combined with the application of smart technology in operating, controlling and regulating the entire project's working process via computers, smartphones, tablets to improve productivity and product quality The scale of project model construction includes the following items:

Table 1 Scale and construction area of the project

No Conception Quantity | Measure

A_ | Production areas

1 | Internal traffic road 748 m2

2 | Garage for bicycles and motorbikes 100 m2

3 | Water supply and treatment system 1 System

4 | Comprehensive drainage system 1 System

5 | Office house 50 m2 6_ | Securlty house 10 m2

8 | Gardens 1 System

9 | Ground leveling 1 System

10 | Fences, security gates 1 System

C | Power system

1 | Medium voltage lines and 1000kVA transformer station 1 System

17

Trang 18

Minh City

Production phase

© Most of the machinery, equipment and raw materials for the project's production will later be sold locally At the same time, the project is also relatively close to the center of Ho Chi Minh City, so it is very convenient for purchasing machinery, equipment and materials to serve the project's production

o When the project comes into operation, the infrastructure works in the project area will meet the requirements for the project to go ito production So the

transportation of raw materials and products will be very convenient

4.3.1 Grid-connected electricity output

To effectively exploit solar energy sources combined with operating and exploiting high- tech agricultural applications below, the project needs to comply with some of the following principles:

18

Trang 19

© The battery roof system must ensure solidity, resist level 12 storms, level 14 shocks, and the lifespan of the roof must be greater than the age of the system, usually over 30 years (There are no storms in this area so downgrade)

© Solar panel production technology and inverter production technology are proportional to the project's capital recovery time The better the product, the higher the electricity absorption efficiency and vice versa

© The solar panel warranty period is proportional to the safety level of the project The longer the warranty period, the higher the safety level of the project Therefore, the investor decided to choose monocrystalline battery production technology produced by LG Electronics Group with a warranty period of 25 years The product is imported from Korea with the following advantages:

o The LG Neon® 2 400W 72 cell solar panel uses Cello technology, which replaces

3 busbars with 12 thin busbars to increase performance and reliability

i Cello Technology™

NeON® 2 utilise 12 fils fin reposant

sur la technologie Cello

Figure 4 Structure of LG Neon® 2 400W 72 cell solar panel

o The LG Neon® 2 battery panel uses 12 thinner metal wires to increase the amount

of electricity generated more stably The circular busbars reflect light in many different directions, helping to absorb more light than other regular types of battery

19

Trang 20

LG Nei Mono de type P Multi de type P

Figure 6 Power output from LG Neon® 2 compared to other batteries

Figure 7 The energy generation capacity of LG Neon® 2 is 4.1% higher than others The annual electricity output generated from the 800kW solar power system with LG Korea panels and Mon Crystaline technology 1s expected to reach 1,460,000 kWh/year with 90% capacity Project simulation on Pvsyst TRIAL software at the deployment location achieved the following indicators:

20

Trang 21

Main system System type No 3D scene defined, no shadings

PV Fieic Onentation tk 15° azimuh 0°

PV modules Model LG 400 N2W-A5 Phorm 400 Wp

PV Anay Nb of modules 2484 Prom total 394 kWp lewerter Model TRINERGY PLUS-60KW Pnom 60.0 KW ac lewerter pack Nb of units 15.0 Prom total 900 kW ac Users needs Unirnited load (gnc)

Main sumulabon results

System Production Produced Energy 1474 MWhiyear Specficprod 1454 kWh/kiWplyear

wry? km * why? Why? ah Mah Janvery iMi 68 %0 2 199% 147 1 133.2 197 00871 February 1467 $9.80 a4 160 7 187.2 4.6 uss 0851

March 1704 9097 235.68 172 1728 1515 1486 0842

april 1977 4431 73.02 183 19⁄0 ® 126 130.1 0943

May 169 2 79.60 23“ 1589 153$ 1144 1319 08%

June 1545 71% nw 127 13M1 1210 1198 0134 July 1624 771 30.53 1515 14 7 243 uss 0483? August 11%Ắ0 85.17 23.80 114 172 1123 110.3 09845 Septernbder 13⁄6 4.02 27.68 159 ime 11⁄4 3 1141 0845

October 1233 68.53 26.23 1301 126.3 122 110.0 6.8451

| Mowernter 1115 55.44 ma 12% 120.5 7.2 10: 0.853

Occember 1154 63.73 22.59 | 1301 1266 115.0 1128 0.872

Your 1715.9 872.53 ^»375 1744 6 6990 1902.6 14741 0.0844 legends §=Gobrer Morizortel gobet rradiation oner Effective Gott, com for LAM and shacings Offer Morvones! diffine irradiston LAray Effective exergy at the output of the array

1 Arb Arnbser+ Terrgpershze tou Energy hyected into gid

Figure 8 Pysyst TRIAL electromagnetic output simulation parameters 4.3.2 High-tech agricultural products

Mushroom growing house

21

Tiêu đề	Cost — Benefit Analysis High-tech agricultural farm incorporating solar energy
Tác giả	Pham Minh Trang
Người hướng dẫn	Assoc. Prof. Dinh Duc Truong, PhD. Nguyen Dieu Hang
Trường học	National Economics University
Chuyên ngành	Trade and International Economics
Thể loại	Graduation Project
Năm xuất bản	2023
Thành phố	Hanoi

Định dạng
Số trang	42
Dung lượng	8,79 MB