1. INTRODUCTION
Between the development of renewable energy projects and agriculture, there is a potential tension of rights between the stakeholders of each activity, which needs to be resolved and/or sorted out. Such tension derives mainly from the use of the land, food security, the protection of patrimonial heritage assets, the requirement to have “social license” of the communities impacted by the project, among other important tensions, which become evident once the respective project advances and what is at stake becomes visible for each participant.
The proposal here refers to the possibility of first, recognizing the factors to consider when such tensions appear, identifying alternatives pursuant to which the impact for each of the stakes involved is minimized (maximizing each stakeholder’s interest, either by reducing the impact suffered or by proposing other additional benefits to compensate for the burden imposed) and finally, accepting that certain restrictions for the development of renewable energy projects are to be accepted, granted that they are reasonable and convenient to protect a superior interest, which needs to be protected by the State.
2. THE “ENVIRONMENT” STAKE
The development of both renewable energy and agribusiness projects is essential to tackle relevant global crises. While renewable energy projects are necessary to address climate change crisis, the development of agribusiness projects is imperative to address food security crisis. As it is widely known, the climate change crisis has been mainly caused by fossil fuel use. Since the Paris Agreement in 2015, countries have been supporting energy transition actions to decarbonize the global economy. Colombia has not been the exception. Not in vain Colombia is currently offering vast opportunities on renewable energy sector. Meanwhile, as per Global Report on Food Crises , the number of people facing acute food insecurity rose to 258 million in 58 countries in 2022, being necessary to face this issue the increase on agricultural productivity and sustainable food production. The relevant causes of global food security, which are particularly evidenced in Colombia, are related to: (i) economic shocks; (ii) conflicts and/or insecurity; and (iii) weather or extreme climate conditions. Thus, the development of agribusiness projects is also very important. The latter also considering that Colombia, as other Latin-American countries, is recognized as an ideal destination for this sector due to its production experience and its privileged geographic location .
Bearing in mind the above, it is fundamental that both types of projects have sufficient land to be developed. There is a position according to which renewable energy projects, particularly solar and wind energy projects, are grabbing land area for agribusiness or farming activities, and thus they are not able to coexist. However, since both projects are necessary to solve huge global crises, innovative, and, particularly, sustainable solutions for their coexistence have arisen, have been implemented and must continue to be implemented. The mentioned through projects in which land is shared between renewable energy and farming activities, applying new technologies, achieving common purposes, and exchanging benefits. Said coexistence entails several advantages that should be considered to contradict the position previously described, such as: (i) efficient use of land; (ii) reduction of greenhouse gas emissions; (iii) cost reduction regarding energy use; (iv) potential local communities empowerment.
It is in that context that Colombia’s regulatory framework requires that all projects are adapted to sustainable development practices, formulating, and implementing measures to innovate, handle risks and generate positive impacts on economic, environmental, and social fields. Today the main challenges for project development in the above-described sectors in Colombia are related to social (social licensing) and environmental (reducing the impact, especially, for biodiversity) matters. For said challenges, Colombian regulation already has legal tools (from several participation mechanisms to different environmental authorizations depending on the scales of the project, work and/or activity to handle environmental impacts). In addition, tools to incentive sustainable practices, such as: (i) tax incentives for renewable energy projects and/or for investments in control, conservation and improvement of the environment or positive environmental impacts; and (ii) payment for environmental services to enable the conservation of ecosystems, which are used as alternatives for compensation strategies of environmental impacts derived from project development.
The feasibility of both, agribusiness, and renewable energy projects, in Colombia, will always depend on guaranteeing participation mechanisms to communities located nearby or within the projects’ areas. The latter regarding not only legal standards (public hearings, prior consultation process, others) but also supra-legal standards. It is important that projects (agribusiness and renewable energy) are timely and accurately socialized with the communities (not only under legal standards but beyond), and, that communities are involved in the development of the projects. The latter will contribute to handling eventual social risks. Although, the signature of Escazú Agreement in Colombia is apparently implying more pressure to companies and the government, the measures contained therein are not different from what is already established in Colombian regulation.
Additionally, projects’ development in the mentioned sectors will need to comply with minimum requirements as to guarantee environmental protection of ecosystems and natural resources (special protected areas, species, limits, others). The above, as per regional and global legal standards, not only on climate change, but also on biodiversity, contamination, and others.
In the framework of Sustainable Development Goals , the main challenge for Colombia and all countries regarding renewable energy and agribusiness projects is to find strategies to jointly achieve the implementation of energy systems from renewable sources (SDG 7), tackle climate change crisis (SGD 13), address food security problems (SDG 2), guarantee the protection of ecosystems and biodiversity (SDG 15) and enable community development (all SDGs).
3. THE URBAN LAW PERSPECTIVE
The process of spatial planning and design is primarily a task entrusted to the municipality and, in other specific cases, to metropolitan areas or regions. This planning task follows rules that aim to serve the general interest, to give property a social and environmental function and to distribute the burdens and benefits of development.
In addition to the above-mentioned rules, development and planning norms are supported by the pillars that every planning process must follow, the so-called planning determinants.
The planning determinants have the following hierarchy:
- Level 1. The determinants related to conservation, protection of the environment and ecosystems, risks, water protection, natural resources.
- Level 2. Areas of special interest for the protection of the human right to food of the inhabitants of the national territory located within the agricultural frontier.
- Level 3. Policies, guidelines and regulations on the conservation, preservation and use of areas and properties considered to be of historical, artistic, archaeological and architectural heritage.
- Level 4. The identification and location of basic infrastructure related to the national and regional road network, river, railway, ports and airports, specialized logistics infrastructure defined by the national and regional level to solve intramodality among the transportation systems, as well as water supply, sanitation, energy and gas supply systems and the Internet. This level will also consider planning guidelines for the areas of influence of these uses.
- Level 5. The spatial planning components of comprehensive metropolitan development plans.
- Level 6. Special tourism projects and related infrastructure defined by the Ministry of Trade, Industry and Tourism.
We can see that food production is on the second level of the hierarchy, just after environmental conditions. On the other hand, the infrastructure for energy production, including alternative energies, is at level four. This does not necessarily imply a contradiction or conflict, but it does require that projects be properly organized.
Although the infrastructure serves the general interest and aims to improve the quality of life of the inhabitants, it must be developed with a view to protecting environmental values, food-producing areas and heritage values such as cultural assets.
In the development processes of energy infrastructure, sectors or areas of rural land are mainly occupied, where the extensions meet several conditions, such as the area and the absence of buildings. It should be noted that rural areas are mainly used for agricultural and forestry production. Only in exceptional cases are projects developed on urban land, given the cost of land and the vocation of urban land for construction.
Land use planning has tools that make it possible to articulate the development of renewable energy and agricultural production, but it is necessary that these projects, both agricultural and energy, are built in a coordinated and harmonious way. Otherwise, conflicts may arise between two interests that are important for human development: energy production and food production.
4. THE ENERGY REGULATION AS AN ALTERNATIVE TO REDUCE THE TENSIONS
As a way forward, considering the relevant tensions we have discussed before, is to verify alternatives pursuant to which stakeholders from both the agriculture and the power sector collide. Both the agriculture and the power sector need one another and must find ways to coexist. For one side, agriculture has recently shown an increase demand for energy, for purposes of its industrialization and development into agribusiness. On another hand, energy transition requires the demand for energy, for purposes of obtaining sufficient leverage for it to be implemented. However, the coverage of energy in the countryside (rural area is usually where agricultural activities are performed) only reaches 86% of the demand , somehow enabling certain restrictions for agriculture’s industrialization.
In Colombia, recent laws have proposed a way forward with respect to such coexistence between the power sector and agriculture. For example, Law 2294 of 2023 (Development Plan of Colombia for 2022-2026) incorporated the concept of energy communities in Colombia. Although energy communities have been already in place in places such as Spain and/or Italy, in Colombia, the concept entails the incorporation of associations and/or other type of communities, which can be conformed by either legal or natural persons, for purposes of generating, retailing and/or efficiently using energy using renewable resources. Although the concept is yet to be regulated, in Colombia, this solution could be used in rural areas to facilitate the adoption of renewable energy solutions to respond to the increasing demand.
In 2022, Law 2219 of 2022 set forth certain structures within the context of the rural sector which could be used, in addition to other joint efforts to be structured between them, for purposes of generating solutions to attend the needs of those who conform it. The structures are knowns as Farmers Associations and Agribusiness Associations. These associations are structures to be incorporated either between farmers and/or agribusiness owners, for purposes of either representing the respective association before the respective authorities and/or satisfying and/or defending the common interests of their associates. Therefore, since the rural public policy has recognized the need for the rural sector to join efforts, then within the context of said joint efforts, such structures could be used for purposes of identifying potential agrivoltaic solutions so that the agriculture related activities can coexist, prosper, and develop by also finding solutions for the energy needs required for this sector.
These energy communities incorporated either through the Farmer Associations and/or Agribusiness Associations could find solutions to provide the energy required for their needs and set forth rules and regulations between them for purposes of providing the required investment, putting into operation the respective project and define a process to operate and maintain the respective assets. In this light, the development of energy projects required for the development of agriculture could be performed in such a way where the relevant stakeholders are considered, and their respective needs considered. An additional benefit of structuring these projects using the rural structures mentioned above, is that there will be a need within said sector to find technical solutions to generate energy while allowing the agriculture activities to be performed (for example, using transparent solar panels for allowing the sun light to go into the ground and allowing crops to grow, while generating electricity).
Finally, it would be important to call upon the national government, so that the differentiated tariffs for the rural sector are effectively regulated , in the context of the new legal institutions which have been incorporated in our legal system.
5. CONCLUSIONS
To conclude, even though the tensions between the agriculture sector and the renewable energy sector can be evident where the projects supersede, both economic sectors require each other for its development. Not only the agribusiness, in the context of its industrialization, requires attending its energy demands through sustainable alternatives (renewable energy), but also renewable energies and the transition requires to consider all the relevant stakeholders, so that its promise is achieved by considering all the interests involved.
Land planning and proper rural structures (such as energy communities via de Agribusiness’ and Farmer’s Associations) can be alternatives to face these issues directly and promptly. The need to properly plan and set out the pathway to develop agriculture and renewable energy projects is a must in the context of urban and rural planning plans and by setting forth structures to properly represent the interests of individual rural entrepreneurs. This way, you can attend two subject matters which are creating the tensions: (i) a solution for rural agribusiness to have its energy demands attended using the energy communities alternatives and (ii) obtain direct information from the Associations which represent the individual projects, so that in the context of urban and rural planning, developers are able to understand where are the projects being advanced upon and which places are more suitable to develop the project of interest.
On another hand, it is important to consider the needs from the community impacted by renewable energy projects. Not only the prior consultation in the context of environmental licensing is a must, but a developer also needs to consider the “social licensing” of the project. This means that you require to go beyond what has been set forth in the regulations and proceed to understand the communities’ needs and requirements, so that the respective project is not only accepted by the communities but also propelled by them.
Author: Carlos Umaña Trujillo 1
1 With the collaborations of Wilben Palacios, Juana Valentina Micán and Andres F. Parra
2 Food Security Information Network. Global Report on Food Crises 2023. https://www.fsinplatform.org/global-report-food-crises-2023
3 Invest in Colombia. Agroindustrial y Producción de Alimentos. https://investincolombia.com.co/es/sectores/agroindustria-y-produccion-de-alimentos
4 United Nations. Sustainable Development Goals. https://www.un.org/sustainabledevelopment/
5 Sistema de Información Eléctrico Colombiano (SIEL)
6 There have been at least 2 initiatives with respect to the differentiated tariffs: (i) article 127 of Law 1949 of 2018 and (ii) article 228 of Law 1955 of 2019. However, in neither of these initiatives, the government regulated the way in which this differentiated tariff could be applied.