Scaling Up Distributed Solar in Emerging Markets: The Case of the Arab Republic of Egypt Sakr, Dalia Huenteler, Joern Matsuo, Tyeler Khanna, Ashish 2017-06-21T20:17:02Z 2017-06-21T20:17:02Z 2017-06
dc.description.abstract Like many emerging markets, the Arab Republic of Egypt is keen to promote distributed solar, defined here as systems below 500 kilowatts, but has struggled to create conditions for growth in the sector. The aim of this paper is to identify policy actions to unlock the distributed solar market for on-grid and off-grid applications, using Egypt as a case study. The paper calculates the rate of return on investment for different distributed solar applications, identifies nonfinancial barriers to scaling up distributed solar, and derives policy implications. For on-grid applications, the analysis finds that neither net metering nor the feed-in tariff makes distributed solar financially attractive, despite recent reductions in electricity subsidies and adjustments of feed-in tariff levels in October 2016. For off-grid applications, the profitability of distributed solar depends highly on the local price of diesel: distributed solar is viable only in areas where diesel is not available at the official (subsidized) price. In addition, several nonfinancial barriers limit the scalability of the distributed solar market. These findings indicate that the distributed solar market in Egypt will remain a niche market in the next few years without strengthened government support. First, for on-grid applications, the net metering scheme should be kept in place until a bankable feed-in tariff has been established. Second, for off-grid applications, the government should explore interventions to unlock opportunities in the agriculture and tourism sectors. Third, the government should strengthen private-sector activity in the sector, including by addressing nonfinancial barriers, such as transaction costs and gaps in the availability of data, and by building capacity among users, suppliers, and financial institutions. en
dc.language English
dc.language.iso en_US
dc.publisher World Bank, Washington, DC
dc.relation.ispartofseries Policy Research Working Paper;No. 8103
dc.rights CC BY 3.0 IGO
dc.rights.holder World Bank
dc.subject SOLAR
dc.subject OFF-GRID PV
dc.subject METERING
dc.title Scaling Up Distributed Solar in Emerging Markets en
dc.title.subtitle The Case of the Arab Republic of Egypt en
dc.type Working Paper en
dc.type Document de travail fr
dc.type Documento de trabajo es
dspace.entity.type Publication
okr.crossref.title Scaling Up Distributed Solar in Emerging Markets: The Case of the Arab Republic of Egypt 2017-06-19
okr.doctype Publications & Research
okr.doctype Publications & Research :: Policy Research Working Paper
okr.identifier.doi 10.1596/1813-9450-8103
okr.identifier.externaldocumentum 090224b084cd16df_1_0
okr.identifier.internaldocumentum 27643110 WPS8103
okr.imported true
okr.language.supported en
okr.pdfurl en
okr.region.administrative Middle East and North Africa Egypt, Arab Republic of
okr.statistics.combined 4639
okr.statistics.dr 815911497878875622
okr.statistics.drstats 4065
okr.topic Energy :: Energy Markets
okr.topic Energy :: Energy Policies & Economics
okr.topic Energy :: Energy Technology & Transmission
okr.topic Energy :: Solar Energy
okr.unit Energy and Extractives Global Practice Group
relation.isSeriesOfPublication 26e071dc-b0bf-409c-b982-df2970295c87
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