BioEnergy for Sustainable Rural Development

What is the project about?

 UNDP 2014

In partnership with the Egyptian Environmental Affairs Agency, the objective of this project is to remove the technical, institutional, informational, financial and other market barriers to the increasing use of biomass energy in promoting sustainable rural development in Egypt and in reducing the negative global and local environmental impacts associated with the use of fossil fuels and the environmentally not sound management of agricultural and solid waste. This is envisaged to be achieved by:

i.    Testing the technical, and in particular, the economic and financial feasibility of selected bioenergy technologies on the basis of new business and financing models, and developing further the financial, institutional, and market strategies for their large scale replication;
ii.    Supporting the development and adoption of an enabling policy framework to implement and leverage financing for the recommended strategies;
iii.    Building the capacity of the supply side to market, finance and deliver rural bioenergy services; and institutionalizing the support provided by the project to facilitate sustainable growth of the market after the end of the project.

What have we accomplished so far?

  • South-south cooperation with India in the field of biomass identified and strengthened. One visit of the consultants to Egypt undertaken.  Specifications for gasification units prepared and advertised. One study tour of the project team to India mid-2013.
  • Procurement Process complete for company to implement household biogas plants in Egypt. Selected company also delivered training for people, governmental organization, and local entities interested to know and work in the bioenergy field, to be able to maintain the units that will be implemented by the project and others by the owners themselves.
  • The installation of 102 household biogas units in Fayoum and Assiut has been completed by the selected Indian company. Beside 200 units have been installed by trained Egyptian Engineers and masons; the target being 300 units in each governorate.
  • The identification and capacity building of 31 local entities to act as Bioenergy Services Providers (BSPs) is being finalized; the target being 20 BSPs.

Who finances this project?

The Global Environment Facility

The Government of Egypt


Delivery in previous fiscal year


US$ 492,682.22


  • The main energy resources available in Egypt are oil, natural gas, hydropower and other renewable sources of energy, coal and non-commercial sources of energy.
  • The large capital investments required to secure adequate and reliable supply of energy to meet the demand continue to increase in line with economic growth and the expanding population.
  • Prices of liquid petroleum fuels, natural gas and electricity had been kept stagnant over a long period, despite increase in production costs.
  • Low cost recovery and deteriorating financial performance of the entities responsible for energy production and distribution have ensued.
  • Subsidized energy prices do not promote efficient energy use and distort prices in the manufacturing sector.
  • The 2008 Supreme Council of Energy decision to diversify Egypt’s sources of energy production, severe shortages of butane gas cylinders and the increasing burden posed by energy subsidies on the government budget, provide an opportunity for the promotion of bioenergy as a source of rural energy.
  • The market potential in Egypt for biogas units is enormous.  If each household can source the equivalent of 50 kg of animal waste on a daily basis, biogas units will have the potential to displace all LPG usage from biogas units for more than 8.9 million rural households, and generate emission reductions of over 7.56 million tons CO2 per year.

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