Ecological and economic optimization of small bioenergy development

Timur Kudin and Serhii Saiapin

Ekonomika, Journal for Economic Theory and Practice and Social Issues, 2019, vol. 26, issue 9

Abstract: The purpose of the article is to justify the use of small bioenergy at the level of individual households aimed at obtaining both additional energy supply and improvement of the local (on a household or settlement levels) environment. Research methods. In the course of the study, the comparative analysis of efficiency of the use of individual types of renewable energy was made using the Hicks-Calderon compensation assumption. Using the net present value methodology (NPV), operational efficiency characteristics of small bioenergy plants with accounting local environmental component and without it were received. Research results. Analysis of cost-effectiveness of small bioenergy has shown that it is notable to compete with generation of solar power plants (SES) it is not taken into account the environmental improvements due to the deactivation of household and economic activity waste. In this case, a payback period of bioenergy equipment, namely biogas plants, is significantly reduced, and attractiveness of the development of this direction of renewable energy is increased. Market research of the biogas equipment market was carried out and a number of proposals were identified, which correspond to the scale of a household, farm or settlement on a cooperative basis. There was carried out refinement of the presented technological parameters of installations in conditions of actual operation for practical implementation of small and environmentally oriented bioenergy households in rural households. Based on characteristics of standard equipment (cost of power installation, profit), a payback period of equipment depending on a discount rate was estimated. It was shown that favourable payback periods (7-10 years) can be obtained only in a case of improving local environment. Existence of a scale effect in bioenergy suggests that household cooperation is a very promising way of bioenergy development. Elements of scientific novelty. Scientific novelty of research lies in use of the Hicks-Calderon compensation assumption in estimating a payback period of bioenergy equipment. Practical significance. The research is aimed at improving investment attractiveness of small bioenergy and is based on a comparative analysis of operational characteristics of plants of domestic and foreign origin. Tabl.: 2. Figs.: 2. Refs.: 19.

Keywords: Resource/Energy; Economics; and; Policy (search for similar items in EconPapers)
Date: 2019
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