Economic Viability of Renewable Energy Technologies in Egyptian Agriculture and Rural Development | ||
| المجلة المصرية للاقتصاد الزراعي | ||
| Volume 34, Issue 4, December 2024, Pages 1499-1515 PDF (649.81 K) | ||
| Document Type: أبحاث علمیة متخصصة فی الاقتصاد الزراعی | ||
| DOI: 10.21608/meae.2025.337248.1342 | ||
| Authors | ||
| Ehab Ibrahim* ; ياسمين حمدالله | ||
| قسم الاقتصاد الزراعي، كلية الزراعة، جامعة القاهرة | ||
| Abstract | ||
| The Egyptian government recognises the need for a sustainable energy mix to address the growing energy demand and transition to a more environmentally sustainable and diversified electricity sector. They are targeting increasing the electricity supply generated from renewable sources to 20% by the end of 2025 and 42% by 2035, up from the current rate of 7%. This paper focuses on the economic analysis of renewable energy technology adoption in the agriculture sector in rural Egypt via a literature review, cost-benefit analysis, pay-back period, internal rate of return, and partial budgeting. Based on previous studies, solar and biogas energy are the most stable and abundant renewable energy resources in rural Egypt. The obtained results of the typical home solar panel system showed that it is a marginally viable option for rural households in terms of a pay-back period of 5.8 years and an internal rate of return of 4.1%. However, with the price of conventional energy rising and the price of solar panels falling, it will be a more economically viable option for rural electrification in Egypt. Additionally, it was found that biogas plants have economically viable options with a short repayment period of 3 years and a high IRR from 35% to 40% compared to the commercial interest rate of 27%. | ||
| Keywords | ||
| Renewable Energy; Agriculture; Cost-Benefit Analysis; Pay-Back Period; IRR | ||
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