Challenges Facing Private Solar Energy Firms in Egypt: A Microeconomic Perspective

Abstract

The need for the use of renewable energy sources in general and solar energy in particular is immensely increasing over time. It is true that our planet’s future relies to a great extent on the speed of shifting to renewables instead of the use of fossil fuels for energy supply. Accordingly, the Egyptian government has put sustainable development as a priority in its 2030 vision. But to achieve sustainability, various obstacles that impede this process should be carefully identified and addressed. For that, this research work is studying various challenges and barriers that face private solar energy suppliers in Egypt. This is conducted by using an exploratory approach that relies on detailed interviews with private solar energy firms. Results highlight that private solar energy firms are challenged by trade barriers, market barriers, organisational barriers from New and Renewable Energy Authority (NREA), macroeconomic barriers and legal barriers. Furthermore, this study provides policy solutions to partially address the identified barriers and to further speed up the transition to solar energy production and usage. Keywords: Solar energy market, Egypt, Barriers and challenges, Semi structured interviews, renewables. JEL: O1, Q2, Q4