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A Greenhouse Profitability Model: The Effect of the Energy System

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  • Anna-Maria N. Dimitropoulou

    (Laboratory of Process Analysis and Design, National Technical University of Athens, 15780 Athens, Greece)

  • Eugenia N. Giannini

    (Laboratory of Process Analysis and Design, National Technical University of Athens, 15780 Athens, Greece)

  • Zacharias B. Maroulis

    (Laboratory of Process Analysis and Design, National Technical University of Athens, 15780 Athens, Greece)

Abstract

This study proposes a technoeconomic model for assessing the profitability of modern greenhouses, with emphasis on hydroponic systems and the integration of combined heat and power (CHP) technology. Given the high share of energy costs in total operating expenses (~35%), the model includes both cultivation and energy subsystems and is implemented in a spreadsheet environment for ease of use. The model calculates Return on Investment (ROI) under various scenarios, considering geographical latitude, CHP capacity, cultivation settings, and energy prices. In the baseline case, the greenhouse ROI is 12%, rising to 14% when CHP is integrated, with CHP itself achieving 24%. Key findings include the identification of optimum CHP sizing (0.5–1.5 MW/ha, depending on latitude) and critical inflection points in ROI behavior associated with latitude and cultivation temperature, driven by the depletion of cooling demand and redistribution of operating modes. The analysis confirms that CHP becomes economically attractive when the Spark Ratio (the electricity price to the natural gas price) exceeds 3, offering enhanced profitability and resilience against energy price volatility. The proposed method is simple, transparent, and suitable for preliminary investment analysis and policy planning in sustainable agri-energy systems.

Suggested Citation

  • Anna-Maria N. Dimitropoulou & Eugenia N. Giannini & Zacharias B. Maroulis, 2025. "A Greenhouse Profitability Model: The Effect of the Energy System," Energies, MDPI, vol. 18(17), pages 1-25, September.
  • Handle: RePEc:gam:jeners:v:18:y:2025:i:17:p:4748-:d:1743625
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    References listed on IDEAS

    as
    1. Miguel A. Torres & Diego Muñoz & Claudio Burgos & Daniel Casagrande & Javier Ortiz & Hernán Reyes, 2024. "Design and Performance Evaluation of a Photovoltaic Greenhouse as an Energy Hub with Battery Storage and an Electric Vehicle Charger," Sustainability, MDPI, vol. 16(3), pages 1-18, January.
    2. Efstratios Michalis & Christina-Eleni Giatra & Dimitrios Skordos & Athanasios Ragkos, 2023. "Assessing the Different Economic Feasibility Scenarios of a Hydroponic Tomato Greenhouse Farm: A Case Study from Western Greece," Sustainability, MDPI, vol. 15(19), pages 1-14, September.
    3. Kalliopi Tataraki & Eugenia Giannini & Konstantinos Kavvadias & Zacharias Maroulis, 2020. "Cogeneration Economics for Greenhouses in Europe," Energies, MDPI, vol. 13(13), pages 1-27, July.
    4. Sedat Boyacı & Joanna Kocięcka & Barbara Jagosz & Atılgan Atılgan, 2025. "Energy Efficiency in Greenhouses and Comparison of Energy Sources Used for Heating," Energies, MDPI, vol. 18(3), pages 1-20, February.
    5. Anna-Maria N. Dimitropoulou & Vasileios Z. Maroulis & Eugenia N. Giannini, 2023. "A Simple and Effective Model for Predicting the Thermal Energy Requirements of Greenhouses in Europe," Energies, MDPI, vol. 16(19), pages 1-27, September.
    6. Tataraki, Kalliopi G. & Kavvadias, Konstantinos C. & Maroulis, Zacharias B., 2019. "Combined cooling heating and power systems in greenhouses. Grassroots and retrofit design," Energy, Elsevier, vol. 189(C).
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