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SPIS Toolbox - Decide on market potential
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4. Decide on Market Potential
This module presents parameters that are key to assessing the market potential of SPIS for any target area. The evaluation of these parameters should be done in consideration of WHO is evaluating the market and WHY they are evaluating the market. The evaluation of the parameters presented in this module should be in a sequential order.
Evaluation of Weighted Geophysical Attributes
While several geophysical parameters are identified to guide the assessment of SPIS markets, 3 are considered crucial to the viability of SPIS applications as highlighted in chapter 1. If their state is unfavourable in the area of interest, SPIS is unlikely to be practical. These parameters should therefore be weighted on a binary scale of 1 if conditions are favourable and 0 if unfavourable. Where any of the parameters is scored at a 0, it is then concluded that the target area is not feasible for SPIS.
| # | Parameter | Weight |
|---|---|---|
| 1 | Land cover - land use | 0 or 1 |
| 2 | Solar irradiation | 0 or 1 |
| 3 | Water availability (Precipitation) | 0 or 1 |
1. Evaluation of additional geophysical parameters
These are geophysical parameters that are key to market assessment for SPIS but unlike the parameters in Table 1, they do not critically affect the viability of SPIS; they affect the success of SPIS adoption on a case by case basis. The significance of their impact of the SPIS market is dependent on the needs of the user. The parameters are expounded on in chapter 2 and listed below.
| # | Parameter |
|---|---|
| 1 | Water table |
| 2 | Topography |
| 3 | Ambient temperature |
| 4 | Crops and livestock |
2. Evaluation of the business environment
The first and second steps of the evaluation look at the practicality of implementing SPIS within a target country or region. Parameters on the business environment seek to establish the economic and operational feasibility of SPIS within the said market.
The table below highlights the Modules proposed weighting criteria. However, evaluation of these parameters can be weighted based on the user’s areas of interest and consideration of most critical factors.
| # | Parameter | Weight |
|---|---|---|
| 1 | Government interventions | 15% |
| 2 | Development Organizations Interventions | 10% |
| 3 | Financing | 15% |
| 4 | Availability and cost of alternatives | 10% |
| 5 | Technical capacity | 10% |
| 6 | Awareness of solar PV and irrigation technologies | 10% |
| 7 | Significance of agricultural to the local economy | 10% |
| 8 | Land Tenure | 10% |
| 9 | Transport and communications infrastructure | 10% |
| TOTAL | 100% |
Outcome/Product
- Decision on the SPIS uptake potential for a target market.
Data Requirement
- N/A
People/Stakeholders
- Private SPIS companies
- Policy-makers
- Financial institutions
- Development practitioners
- National and local governments
Important Issues
- The parameters presented in this module present key issues of consideration in conducting a high-level assessment of the SPIS uptake potential for a target market. A detailed market assessment is, however, needed before investment.
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