The indoor agriculture industry: a promising player in demand response services
Javier Penuela, Cecile Ben, Stepan Boldyrev, Laurent Gentzbittel, Henni Ouerdane
TL;DR
This study demonstrates that the rapidly growing indoor farming sector can participate in demand-response programs without compromising vegetative growth of leafy plants. Using a phytotron-embedded vertical farm and a greenhouse-mimicking setup, the authors show that both implicit and explicit DR can yield meaningful economic benefits for the industry and the grid, particularly in Russia, while highlighting the limited potential for carbon-footprint reductions under current energy mix conditions. The work combines detailed experimental design, light-control optimization, and techno-economic modeling to quantify scenarios where DR participation is advantageous. The findings advocate for integrating indoor farming into flexible-grid strategies and call for enhanced data sharing and decarbonization policies to maximize environmental benefits. Overall, DR-enabled indoor farming can enhance grid reliability and local food production, provided efficient energy practices and supportive policy frameworks are in place.
Abstract
Demand response (DR) programs currently cover about 2\% of the average annual global demand, which is far from contributing to the International Energy Agency's ``Net Zero by 2050'' roadmap's 20\% target. While aggregation of many small flexible loads such as individual households can help reaching this target, increasing the participation of industries that are major electricity consumers is certainly a way forward. The indoor agriculture sector currently experiences a significant growth to partake in the sustainable production of high-quality food world-wide. As energy-related costs, up to 40\% of the total expenses, may preclude full maturity of this industry, DR participation can result in a win-win situation. Indeed, the agriculture system must transform and become a sustainable source of food for an increasing number of people worldwide under the constraints of preservation of soils and water, carbon footprint, and energy efficiency. We considered the case of the Russian Federation where indoor farming is burgeoning and already represents a load of several thousand megawatts. To show the viability of the indoor farming industry participation in implicit and explicit DR programs, we built a physical model of a vertical farm inside a phytotron with complete control of environmental parameters including ambient temperature, relative humidity, CO$_2$ concentration, and photosynthetic photon flux density. This phytotron was used as a model greenhouse. We grew different varieties of leafy plants under simulated DR conditions and control conditions on the same setup. Our results show that the indoor farming dedicated to greens can participate in DR without adversely affecting plant production and that this presents an economic advantage.
