SUSTAINABLE ENERGY

Solar PV pumping for farmers

Solar PV pumping for farmers

Market

Final Products Solar energy operated pump
Required Inputs Electric components and equipment
Competing Products

Low competition
Diesel pumps

Potential for Export High

Process

Complexity – Type of Process

Medium – integration process

Technology Design, wiring and installation (electrical design, wiring and installation)
Equipment and Material Electrical tools, PV panels, electric pumps and electric inverters
Human Resources Manual labor, technicians and electrical engineers

Business Linkage

Forward Linkage Farm owners
Local/Regional/Nationwide Export & local markets
Backward Linkage Electric equipment suppliers
Supporting Entities System component suppliers, testing facilities, marketing and services companies
Competitive Edge
Provides solar energy-operated pump (energy security) and reduces diesel costs, especially for off-grid farms

Economic Features

Revenue Stream Sales and maintenance of systems
CAPEX 500K EGP

Note: This CAPEX represents the indicative investment size, however, this investment opportunity can grow in implementation to a larger-sized investment.
Investment Size Micro (less than 500K EGP)

Considerations

Key Challenge Convincing clients with a relatively new product, speed of procurement, high initial cost of system for end-users, lack of end-user financing, marketing and sales services, access to high-quality suppliers, absence of regulation and certification for solar engineers/technicians, absence of policies to encourage manufacturing, absence of any direct policies addressing water governance and solar irrigation, absence of regulation and certification of firms working in the Egyptian solar off-grid market, absence of formal land ownership documentation
Advantages Payback on solar PV pumping is constantly decreasing due to the increase of diesel prices, provides more reliability for systems
Potential Pathways to Growth Full/integrated solutions for irrigation management, agricultural production and/or harvesting processes (could also include Internet of Things (IoT) applications to automate irrigation), locally manufacturing specific components to customize system to local needs with competitive pricing

General Impact

Environmental Reduces CO2 emissions
Social Sustainable and more reliable energy for better farming

Impact on Sub-market(s), Cluster(s) and Value Chain(s)

Relevant sub-market Renewable energy solutions
Lies within the following
value chain/cluster(s)
Solar
Serving the following value chain/cluster(s)
Medical/aromatic plants and herbs, fruits and vegetables
Impact Enhances the use of solar energy in farming
* Source of the information: The above figures were updated by Chemonics Egypt for UNIDO in 2023

Studies

Subscribe to our newsletter to be the first updated about market studies and opportunities