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International Journal of Research in 
Engineering and Management 
(ISSN: 2456-1029) 
    
UGC Approved-A Peer Reviewed Quarterly Journal

 

 

 

 

 

 

 


Full Length Research Paper

Implementing Renewable Energy in Egypt: State of the Art Review, Challenges, and Opportunities

 

Hadil Elba1[*]; Ibrahim Mahdi2; Ibrahim Abdel-Rashid3 and Hassan M. Hassan4

1,4Department of Civil Engineering, Port Said University, Egypt.

2Department of Structural Engineering and Construction Management, Future University in Egypt, Egypt.

3 Department of Structural Engineering, Ain Shams University, Egypt.

 

ARTICLE DETAILS          ABSTRACT

 

 

 

 

 

 

 

 

 

 

 


1. Introduction

Energy is a strategic resource for global development and prosperity, significantly enhancing global social and economic living standards. Energy use is a significant priority for many countries worldwide, including climate warming, energy shortages, and national security. International organizations and national governments are keen to achieve sustainable development based on renewable energy sources and systems such as solar energy, wind energy, biomass, hydroelectric, and hydraulic energy and to seek the economic and environmental benefits associated with them, especially in the possibility of saving energy and reducing emissions of greenhouse gases and pollutants. With a population of over 100 million, Egypt's demand for electricity is growing. Since Egypt's population has grown and its industry has expanded, energy demand has increased. To meet the growing demand, alternative energy options are being explored to help mitigate power shortages. With the help of wind and solar energy, the Egyptian government has already met some of its renewable energy needs and is moving towards using nuclear power. This follows Egypt's strategy to increase the contribution of renewable energy to Egypt's energy mix by 2020. The Egyptian government has taken several steps to develop, encourage, and support the renewable energy industry. Also, to mitigate carbon dioxide emissions. [Moharram, et al., 2022; Aboulela, et al., 2020].

 

We also discussed Egypt's prospects for renewable energy. Plans to meet state needs were also included in the study. By 2022 and 2035, Egyptian governments plan to achieve 20% and 42% penetration levels of renewable energy, respectively. Sustainable development is gaining more attention due to the low cost of generating electricity from renewable sources. Renewable energies can lower the industry's costs, especially since they appear promising (Abdel-Basset, et al., 2021). Several researchers have reported that solar and wind energy are among the most widely used renewable energy sources for reducing carbon emissions [Lovich & Ennen, 2011; Aman et al., 2015]. The client focused on achieving the lowest initial cost, expediting construction time, and ensuring the highest quality. Meanwhile, the structural engineer prioritized minimizing structural depth and weight and maximizing clear span (Elhegazy, et al., 2021). During the past decades, the substantial investments in the construction industry, both in the public and private sectors, provided a strong impetus for researchers to develop recommendations and guidelines for determining the optimum structural system that achieves both time and cost savings (Elhegazy, et al., 2020)(Elhegazy, et al., 2023).

 

As the energy mix changes, renewable energy plays an important role (Abdullah, 2012). This paper clarified many of the problems and obstacles faced by Egypt and many countries interested in the environment and utilizing renewable energy rather than traditional energy sources. It is difficult to access energy in rural parts of Egypt, for example, because of the many people living there. The energy sector is key to Egypt's monetary development and poverty reduction goals (Shouman, 2017). From 1990-2018, there has been an increase in energy consumption of about 210% and a decrease in fossil fuel reserves. Researchers have focused on increasing energy efficiency and survivability to mitigate these problems. In addition, a high capacity of renewable energy in Egypt also encourages researchers to search for and adopt sustainable energy sources to supply energy in the future and foster a sustainable economy. Therefore, we have concluded that no multiple studies can be used to comprehensively review renewable energy capabilities and strategies in Egypt until 2030. Hence, this article examines Egypt's current and future renewable energy production capabilities and strategies to fill this gap. This paper aims to provide an overview of Egypt's solar and wind energy potential, its current status, and policies to encourage the diffusion of renewable energy and the development of technology associated with it.

 

2. Methodology and Data Collection

An overview of renewable energy in Egypt, especially wind energy and solar energy, is provided in this study. In addition to its current status and policies, it is also developing technologies supporting renewable energy deployment. We also explain some of the obstacles facing this development. A selection of articles, conference proceedings, RE textbooks, references, and scientific papers published until 2022 where RE is examined and/or its development, obstacles, and opportunities are discussed in depth. Several renewable applications have been reviewed in this study, either in Egypt or other countries with advanced RE systems. In addition, the selected journals are included in the Science Citation Index Expanded. We used SCOPUS, Google Scholar, and Web of Science as the study research engines for data collection, analysis, and filtering. The paper includes nine main sections, organized as follows: Section 1 provides an introduction and a literature review; Section 2 presents the methodology and how the data in this paper were collected. The background of renewable energy in Egypt is provided in Section 3; Section 4 presents energy development in Egypt. Some of the Current achievements in RE are presented in section 5; Obstacles facing the renewable energy sector in Egypt are discussed in section 6. The Future of Renewable Energy in the Egyptian Market is clarified in section 7. Section 8 provides the study conclusion. A discussion of future recommendations was introduced in Section 9.

 

 

Fig 1. Chart illustrating the study organization.

3. Background of Renewable Energy in Egypt

As Egypt's population grows rapidly to over 100 million, its electricity demand rises. As a result of the increase in population and industrial assets in Egypt in recent years, a substantial increase in energy demand has been experienced, resulting in power shortages and outages. Therefore, it became necessary to examine alternative energy options in order to meet the growing demand (Aboulela, et al., 2020)(Ibrahim, et al., 2023). Early in the 1980s, Egyptian energy policy included renewable energy (RE) strategies. Considering the projections for RE technology, such a strategy has been revised. A revised strategy was developed in response to potential alternatives in RE technology, funding sources, and investment opportunities (El-Khayat & Ameen, 2010). Founded in 1986, the New and Renewable Energy Authority (NREA) evaluates and encourages renewable energy sources through research and development (Aliyu, et al., 2017).

 

Egypt's variety of its electricity sources is a significant element of its electricity strategy. Hydro, wind, and solar sources are all incorporated into the energy assortment. (El-Khayat & Ameen, 2010) In addition to testing and certification laboratories, NREA developed and implemented training programs. A total of 14,855 GWh of electricity was produced by renewables in 2012, followed by 13,358 GWh of electricity produced by hydroelectricity, 1260 GWh of electricity produced by wind, and 237 GWh of electricity produced by solar PV (Energypedia, 2015). The average rate of renewable energy growth (2 percent) was slightly higher than the average rate of primary energy growth (1.7 percent) between 1990 and 2016 (IEA, 2018). It is planned that future projects will be financed in two ways: governmental agreements will fund 33% of them, with NREA handling the rest. The private sector will implement sixty-seven percent of the future capacity under the second scheme. Private sector projects are the responsibility of the Egyptian Electricity Transmission Company, EETC (El-Khayat & Ameen, 2010)(Salah, et al., 2022).

 

4. Egypt Energy development 

Egypt's government must ensure a sustainable and diverse electricity sector to meet its increasing energy demands. Moreover, RE is important in the Strategic Plan for Integrated Sustainable Energy 2035. Thus, Egypt established several goals to promote the development of renewable energy, including:

 

·         As of 2030, Egypt plans to generate 40% of its electricity from renewable sources and maintain its 2035 target of 42%.

·         Achieve climate change and natural disaster adaptation for all countries.

·         Plans, strategies, and policies should incorporate climate change measures.

·         We need better education, awareness, and institutional resources to mitigate, adapt, reduce, and detect early climate change impacts.

·         Promoting climate change education, empowerment, and mobilization among women, youth, and communities.

 

Many other goals can also be achieved through the use of renewable energy. For example, a the International Council for Science (ICSU, 2017) shows that increasing renewable energy and universal access to energy are likely to improve other sustainable development goals such as (UN, 2019) (Millinger, et al., 2012).

 

Fig 2. ICSU's 2017 sustainable development goals.

As a result of political developments, special events, and Egypt's interest in progress in all areas. According to the NREA. Since the strategy is flexible, it was set as a target to produce 20% of total energy by 2022. The Supreme Council has approved an energy plan that aims to:

 

 

Fig 3. Electricity production 2022 (NREA, 2021).

 

The (NREA, 2021) published a report 2021 stating that the Egyptian electricity, RE, and petroleum sectors worked together to determine the optimal mix of energy production in the year 2035. With the help of TARES, the European Union was able to accomplish this. However, until 2035, the most important part of the project in Egypt was supporting a sustainable and integrated energy strategy. Therefore, technical and economic scenarios were developed to determine the optimal entry scenario for renewable energy. As of October 2016, the Egyptian Energy Strategy has been approved by the Supreme Council of Energy until 2035. Egypt will use scenario (4-b) as a benchmark for planning energy for the future, aiming to reach 42% renewable energy by 2035, as follows:

Description: Diagram

Description automatically generated

 

Fig 4. Electricity production 2035 (NREA, 2021).

In order to promote renewable energy and solve electricity shortages, the Egyptian Ministry of Electricity introduced a feed-in tariff for solar and wind energy-generated electricity (Aliyu, Modu, & Wei, 2017). Energy officials aim to generate 20% of electricity from renewable sources by 2020. In order to encourage implementation, two phases are in place: Competitive Bidding and Feed-in Tariff (El-Khayat & Ameen, 2010). The Egyptian government believed annual tariff increases were necessary to eliminate subsidies (Aboulela, et al., 2020).

 

5. Current achievements in renewable energy

The Egyptian government and private sector are developing state-owned projects, competitive bids, and feed-in tariffs. These projects are installed, maintained, and operated with private and NREA funds. By 2022, Wind energy is predicted to surpass hydropower, generating 12% of electricity, with an estimated installed capacity of 7000 MW. This will result in the construction of several large-scale projects in the forecast period, some of which will be operational by the end of the year (Abubakr, et al., 2022). By 2022, Egypt will achieve a 20% renewable energy share and 42% by 2035 under its Integrated Sustainable Energy Strategy 2035. With this growth, Egypt aims to generate 61,000 MW of renewable energy by 2035. As a result, the country's renewable energy market is expected to benefit from this. Powered by 7.2 million photovoltaic solar panels, the Benban Solar Park has a potential of 1800 MW, pushing Egypt's solar energy to a new level. Additionally, the project reduced the cost of PV systems. As (Aboulela, et al., 2020) stated, at present, many wind and solar farms are being established in Egypt, with a reasonable contribution from renewable energy, such as:

 

The Kuraymat solar power plant in Egypt generates 20 MW of solar energy from concentrated solar energy. It has a combined cycle capacity of 140 MW of solar thermal energy. Egypt is building a 3-gigawatt solar power plant in the Benban region, south of Aswan. Additionally, wind energy is considered one of the best energy sources in Egypt. Wind speeds reach 10 meters per second in the Gulf of Suez, Zafarana, and the Red Sea region. It is estimated that 20,000 megawatts of installed wind energy capacity are located west of the Gulf of Suez. (Mordorintelligence, 2020) Among the key factors contributing to the development of the renewable energy sector is the Egyptian government, which plans to develop renewable energy projects to surpass South Africa as Africa's largest renewable energy market.

 

6. Obstacles facing the renewable energy sector in Egypt

Factors and obstacles influenced optimal system selection, including project nature, design team collaboration, team leader personality, and client input. Unfortunately, existing studies often overlooked key factors impacting structural design decisions. This study identified, investigated, and ranked factors affecting optimal system decision-making in construction, particularly during early project life cycles. Practitioners and experts from Egypt participated in a structured questionnaire survey. Various factors were analyzed, spanning feasibility study, planning, and design and engineering stages. Results emphasized the impact of financial difficulties, communication errors, inaccurate project duration estimates, and design changes on contractor requests. This work guides effective construction management, enhancing competitive, quality, and cost-effective projects (Zhong, et al., 2022)(Soliman, et al., 2023).

 

According to these studies (El-Khayat & Ameen, 2010)(UN, 2019)(Dallmann, et al., 2022)(Patlitzianas, 2011), the renewable energy strategy in Egypt faces several obstacles, which can be summarized as the following:

 

Table 1. Obstacles facing the RE sector in Egypt.

Various financing options

·         Easy loan terms for the private sector or government projects.

·         Many developing countries still face funding challenges.

Tariffs for electricity

 

·         Energy is heavily subsidized.

·         Contracts concerning power purchase must be included.

·         Investors need attractive prices, public or private.

Infrastructure

·         Gulf of Zayt and East and West Nile wind farms require huge infrastructure investment to transfer green energy.

·         Electricity transmission requires substations, high-voltage cables, etc.

·         Electricity grid bottlenecks.

Manufacturing localization

 

·         RE systems could be cost-minimized by localizing their equipment manufacturing.

·         Reliability and cost-effectiveness require significant development and demonstration.

Probability of losing a load

·         Installing equivalent power plants would only add to the burden of covering potential losses in production.

Governmental

·         Subsidies are provided for social reasons.

·         Government intervention must increase certainty for investors.

Economical

·         Subsidies for conventional fuel.

·         Inadequate financial instruments for investing in solar energy.

A sociological approach

·         Fear of innovation drives social barriers.

·         Getting agreement from all parties takes time.

·         Photovoltaic energy can affect surfaces, for example.

·         Solar energy can cause collective emotional reactions.

The technical

·         Lack of storage

·         Technology skills include installation, operation, maintenance, and designing policies.

·         Renewable energy limitations.

Environmental

·         Renewable energy has been controversial. Regional ecosystem impacts, land-use implications, and life-cycle emissions are questions (Adetokun, et al., 2022)(Tiwari, et al., 2023).

·         COVID-19 delayed construction projects. Peak performance was optimized. COVID-19 profoundly disrupted the construction industry. During the post-pandemic period, Egypt shaped a new social norm. Seven fuzzy approaches were used to analyze an objective multi-objective project network. These findings address post-COVID-19 project scheduling disruptions (Badra, et al., 2024).

 

7. Renewable Energy Future in the Egyptian Market

The Egyptian government aims to develop and establish many renewable energy projects and increase reliance on renewable energy in the future. Therefore, it encourages and urges competent authorities, scientists, and researchers to study renewable energy projects and benefit from the experiences of countries with a precedent in exploiting renewable energy and studying the global and local market to follow up on governmental, private, national, or individual projects. For example, (Debanjan & Karuna, 2022) assessed the challenges India will face when on-grid renewables reach 50%. A growing share of on-grid renewables results in inertia and frequency response. 80% of on-grid renewable power in 2040 has been well reviewed, and there has been an explanation of various control strategies and technologies for on-grid renewables in India for frequency response. We also demonstrated how inertia loss impacts systems with hundreds to thousands of kWp. In Australia, (Strazzabosco, et al., 2022) investigated how mining companies can reduce their energy costs and greenhouse gas emissions from operations. The adoption of renewable energy by Australian mining companies over time. Also identified are areas for renewable energy intervention in mining. China's sustainable building development article used a kindergarten competition design as an example. Solar energy reduces climate change, global warming, and pollution in green buildings. The article explored how buildings can adapt to local conditions to improve quality. As a result, buildings are eco-friendly and sustainable (Zhang, et al., 2021).

 

Numerous research studies discussed integrating optimization techniques into preliminary cost estimates and predicting the impacts of design alternatives for steel pedestrian bridges (SPBs). The cost estimation process utilized two main parameters, with the primary objective being creating a cost estimation model. This study explored a flexible model design, leveraging computing capabilities for decision-making. By employing cost optimization techniques, the model identified optimal pedestrian bridge systems based on multiple criteria that could change independently. The research focused on four prevalent types of SPB systems in Egypt and worldwide. Additionally, the study proposed developing a computerized cost and weight optimization model empowering decision-makers to select the optimal system for SPBs, aligned with established criteria (Badra, et al., 2023).

 

Data related to residential energy consumption were collected from 100 dwellings independently (Almasri, et al., 2023). The collected data determined energy consumption indicators and dynamic energy analysis. The monthly average was 30832 to 36,166 kWh, and the annual average was 1500 to 4500 kWh. The average hourly electrical consumption on working days was 4.12kWh; on curfew days, 4kWh. Air conditioning accounts for 67.34%, water heating accounts for 9.31%, lighting accounts for 8.18%, and kitchen appliances account for 15.17%, respectively. KSA shows total energy efficiency is 142.9%, compared with % previously reported 77.52%. It ranges from 11.13% to 11.38% in the Qassim region. Clear energy consumption indicators and energy efficiency are presented in this work. As a result, energy efficiency standards can be established in various economic sectors. (Al-Othman, et al., 2022) (Liu, et al., 2022) (Song, et al., 2022) (Wu, et al., 2023) (Elkadeem, et al., 2020) (He, et al., 2022; Elkadeem, et al., 2020) discussed the rapid development of energy technology and sustainable practices. Green hydrogen is being developed for hydrogen economies and energy management. Hybrid renewable energy systems are critical to the success of hydrogen-driven systems. AI in HRESs was discussed, including solar photovoltaic and wind energy combined with fuel cells (FCs). Using AI and data, models identified optimal conditions for power production. AI-enabled solutions can anticipate the disadvantages of HRES during peak loads. Artificial intelligence can optimize, predict, and control desalination design stages. The application of AI in seawater desalination is summarized. Desertification and drought in Egypt can also be combated with renewable energies (Ibrahim, 2012). Egypt's Vision 2030 aims for a prosperous, affordable, balanced, and sustainable economy. A Sustainable Energy Strategy for 2035 was released by the Ministry of Electricity and Renewable Energy in 2015 (IRENA, 2018). The Egyptian government is expanding renewable energy production in cooperation with the business sector (Moharram, et al., 2022).

 

In pursuing advancing construction projects that integrate renewable energy in Egypt, the strategic adoption of artificial intelligence (AI) was strongly advocated. Many design permutations, material selections, and methodological choices existed within any construction endeavor, each contributing to realizing the project’s ultimate objectives. The optimal design solution necessitated a delicate equilibrium between cost, performance, and reliability. This equilibrium was discerned through the application of value engineering (VE) analysis. Value engineering, a well-established management technique, was pivotal for identifying alternative design approaches. VE ensured technical proficiency in performance by satisfying project requirements while concurrently minimizing costs. Ipowered decision-makers to navigate the intricate landscape of construction trade-offs, ultimately steering projects toward successful outcomes (Chakraborty, et al., 2020)(Elhegazy, 2022). In (Chakraborty, et al., 2020)(Elhegazy, et al., 2022), the predictive capabilities of six distinct machine learning algorithms were compared: linear regression, artificial neural network, random forest, extreme gradient boosting, light gradient boosting, and natural gradient boosting. The findings demonstrated that a hybrid model combining light and natural gradient boosting yielded the most desirable construction cost estimates. These estimates were evaluated based on accuracy metrics, uncertainty assessments, and training speed. Additionally, a model interpretation technique grounded in game theory was introduced. This technique allowed for the evaluation of the average marginal contribution of each feature value across all feasible feature combinations, influencing the model predictions. Furthermore, the proposed hybrid model facilitated uncertainty estimation through probabilistic predictions for real-valued outputs. This probabilistic approach generated a comprehensive probability distribution across the entire outcome space, effectively quantifying the uncertainties associated with construction cost predictions.

 

7.1. Mechanisms to support the use of renewable energy sources

Based on the vision of the Egyptian governate (NREA, 2021). The Egyptian government is developing renewable energy sources following Law No. 203 of 2014, which governs renewable energy development in Egypt as follows: -

·         Tenders (EPC): Government construction projects tendered by NREA.

·         Build-Own-Operate Projects (BOO): Investors submit projects, and EETC awards the lowest kWh price.

·         Feed IN-Tariff: Electricity from private companies is sold to the grid.

·         Auctions: State projects are announced and awarded based on the lowest price.

·         Net Metering: Systems up to 20 MW.

·         Independent Power Producers (IPP): Companies that generate power for their loads or consumers.

 

7.2. Government Renewable Energy Legislation (NREA, 2020):

Fig 5. Government Renewable Energy Legislation (NREA, 2020)

 

7.3. Government initiatives and projects

As part of its 2030 vision, Egypt plans mega solar projects. An overview of projects and statistics in this field. In two years, 126 solar farms were built in Egypt. Government solar power plants produce 1.8 megawatts. The station capacity is 5 to 500 kW. Voltalia and Karim El-Lazzawi discussed ways to improve cooperation. The minister said, “Egypt's sun shines most days of the year ”. The Green Climate Fund and European banks invested in ACWA Power's solar power plant in Egypt (Ibrahim, et al., 2023). According to the European Bank for Reconstruction and Development, Kom Ombo will add 200 megawatts to the Egyptian energy sector. Based on (Mordorintelligence, 2020), Within the Integrated Sustainable Energy Strategy 2035, Egypt seeks by 2022 to generate 20% of its electricity from renewable energy and by 3035, 42%. 61,000 MW of renewable energy will be generated, including 31,000 MW of solar power, 12,000 MW of CSP, and 18,000 MW of wind power. Egyptian Electricity Transmission Company and AMEA Power signed a 20-year take-or-pay deal for a 200MW solar and 500MW wind energy project inside Egypt. Benban Solar Park is revolutionizing the Egyptian solar energy market with 1800 MW and 7.2 million panels. Benban's US$2.1 billion investment also reduced the cost of PV systems. The Egyptian government will achieve its renewable target by 2035. It is possible to exploit renewable energy in the residential sector in developing countries, such as Egypt, where affordable energy is a major barrier to accessing modern energy, especially in rural areas that are often poor and vulnerable. Because of this, these communities rely heavily on traditional fuel sources. In particular, solar energy systems stimulate local economic activity and improve living conditions. Additionally, distributed solar power generation systems provide energy solutions (Shouman, 2017)(Eversheds, 2015)(Adun, et al., 2022).

 

8. Conclusion

Most countries' energy sectors have been in turmoil for ten to fifteen years. Egypt's energy sector is reorganizing, developing, and integrating renewable energy but has trouble implementing reforms. Many factors have contributed, including the diversity of actors involved, shifting public perceptions, and policies over time that may have seemed rational in the past but now impose unsustainable burdens. (Ahuja & Tatsutani, 2009) In addition, global energy prices have increased sharply over the past two years, raising concerns about conventional oil (as well as natural gas in some parts of the world), continued strong global demand, and more. Because of climate change awareness, energy policy discussions have become more urgent and focused on renewable energy. The renewable energy sector in Egypt has attracted much attention, progress, and interest, as well as the facilitation of all future opportunities because of its advantages. Furthermore, electricity supplies can be diverted quickly and cheaply to meet Egypt's growing energy demand. As Egypt's population and investments increase, renewable energy has become an important part of its reform plan. The renewable energy mechanisms are designed to encourage and introduce private investors to the sector. In this way, they can reveal the realistic costs of energy supply. Furthermore, it will facilitate and expand the possibility of bilateral agreements, and an independent, commercially oriented operator of transmission networks will be needed.

 

9. Recommendations

The recommendations outlined in this paper encompass a range of measures categorized as short-term, medium-term, and long-term. These measures underscore the need to enhance systems and processes for adequately responding to the current changing environment and effectively confronting such disruptions in the future (Elnaggar & Elhegazy, 2022).

According to the study, the following are opinions to focus on in the future regarding renewable energy to provide and develop energy for Egypt and all countries that seek welfare in the foreseeable future:

·      Develop new ways to encourage private investment in renewable energy projects.

·      Various lands and sites exposed to solar energy produce clean energy and make the most of these lands.

·      Promoting the marketing of solar cells for individual use.

·      Growing awareness of the need to use clean energy instead of other types of energy causes many problems for the environment in the long run.

·      Investigate ways to overcome the obstacles and challenges associated with using renewable energy.

·      Supporting small and medium-sized businesses effectively is imperative for developing domestic technology. The result is that renewable energy will compete more effectively in the energy market.

·      Several projects and lands are being utilized to produce solar energy using solar cells between the Red Sea coast and the Nile River.

·      Wave energy may be able to generate energy in coastal areas.

·      The Egyptian government should agree with Ethiopian authorities to find a solution that benefits both countries. It is imperative that Egypt maintains hydropower production stability and expands hydropower production.

·      Despite its high solar, wind, and bioenergy potential, the Gulf of Suez region is a major renewable energy source.

·      So far, there has been a lack of interest in using biomass from agricultural waste to meet the increasing energy demand.

 

A conflict of interest 

On behalf of all authors, the corresponding author states that there is no conflict of interest.

 

Data Availability Statement

All data, models, and code generated or used during the study appear in the submitted article.            

 

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[*] Author can be contacted at:  hossam.mostaffa@fue.edu.eg

Received: 15-3-2024; Sent for Review on: 19-03-2024; Draft sent to Author for corrections: 28-03-2024; Accepted on:  12-04-2024; Online Available from 17-04- 2024

DOI: 10.13140/RG.2.2.11128.05125

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