With climate change, water scarcity will likely be amplified due to drought and wildfire coupled with increasing demand: Energy Economics Report, SU, Malaysia

University Sunway University (SU)
Subject Energy Economics

With climate change, water scarcity will likely be amplified due to drought and wildfire coupled with increasing demand from the growing population and less available fresh water due to pollution contamination. For the agricultural sector, the deployment of an efficient irrigation system is paramount to prevent adverse effects on crop growth and production as a result of a lack of freshwater supply.

Most water pumps utilized for irrigation purposes are powered by engines running on fossil fuels (diesel, petrol, gas) or on electricity supplied from the grid (and thus produced by fossil fuel-based generators). Fossil energy sources are limited in availability and the emissions from their utilization have severe impacts on the global climate. At the same time, grid-based electricity supply tends to be insufficient and unreliable in developing countries, if not largely absent in rural areas.

A plantation company that you are working for, is planning to deploy a new irrigation system for its paddy and maize fields located in a remote area. As the company is environmentally conscious and is fully committed to achieving its net zero targets, a SolarPowered Irrigation System (SPIS) has been considered as an alternative to the DieselPowered Irrigation System (DPIS). The company has appointed you as the project manager and one of the tasks that you have been assigned to is to conduct an economic analysis for the new irrigation system based on the aforementioned alternatives.

You are required to produce a report and make a presentation on the analysis findings to the top management of the company. In order to complete the task, the following three parts must be satisfactorily addressed: (1) selection between alternatives (SPIS vs DPIS) (2) impact of green incentive (3) replacement analysis.

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