408986

Economic Viability of Renewable Energy Technologies in Egyptian Agriculture and Rural Development

Article

Last updated: 01 Feb 2025

Subjects

-

Tags

بحوث علمية متخصصة في الاقتصاد الزراعي.

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%.

DOI

10.21608/meae.2025.337248.1342

Keywords

renewable energy, agriculture, Cost-benefit analysis, Pay-Back Period, IRR

Authors

First Name

Ehab

Last Name

Ibrahim

MiddleName

-

Affiliation

قسم الاقتصاد الزراعي، كلية الزراعة، جامعة القاهرة

Email

ehab.ibrahim@agr.cu.edu.eg

City

-

Orcid

-

First Name

ياسمين

Last Name

حمدالله

MiddleName

-

Affiliation

قسم الاقتصاد الزراعي، كلية الزراعة، جامعة القاهرة

Email

yasmine.abd.elnasser@agr.cu.edu.eg

City

-

Orcid

-

Volume

34

Article Issue

4

Related Issue

51691

Issue Date

2024-12-01

Receive Date

2024-11-17

Publish Date

2025-01-30

Page Start

1,499

Page End

1,515

Print ISSN

1110-6832

Online ISSN

2735-4040

Link

https://meae.journals.ekb.eg/article_408986.html

Detail API

http://journals.ekb.eg?_action=service&article_code=408986

Order

408,986

Type

أبحاث علمیة متخصصة فی الاقتصاد الزراعی

Type Code

1,466

Publication Type

Journal

Publication Title

المجلة المصرية للاقتصاد الزراعي

Publication Link

https://meae.journals.ekb.eg/

MainTitle

Economic Viability of Renewable Energy Technologies in Egyptian Agriculture and Rural Development

Details

Type

Article

Created At

01 Feb 2025