Economic Efficiency of Alternative Energy Supply Technologies for Consumers in the Sverdlovsk Region

Galina S. Chebotareva, Artyom A. Dvinayninov, Alexey D. Berdnikov and Danil A. Tinarsky

Journal of Applied Economic Research, 2025, vol. 24, issue 1, 216-256

Abstract: Decarbonization that has become a global trend in the contemporary economy is associated with the development of low-carbon energy, reduction of greenhouse gas emissions, etc. It is possible to effectively embrace this challenge through the use of large biogas plants. They allow autonomous and environmentally friendly provision of all energy needs of private consumers. However, existing social gasification programs may hinder the spread of ultra-capital-intensive biogas projects. The purpose is to assess the economic efficiency of replacing traditional methods of energy supply to private consumers in Russia's regions with alternative biogas technologies. It is hypothesized that biogas plants are a real economic alternative to mainline gas supply and other technologies, regardless of the distance to private consumers. The authors' approach is based on a discounted valuation of technologies during the life cycle, achieved savings, and scenario cost allocation. The efficiency indicator is the cost of gas consumed, and the decision is made on the basis of a comparative assessment in compliance with the principle of least cost. The objects are three alternatives – mainline, liquefied gas and a biogas plant. The calculations are carried out for a rural settlement located in the Sverdlovsk region. The scenario assessment proved that the hypothesis is fully justified. A large biogas plant can become an economic alternative to traditional energy supply, regardless of the distance between the consumers and the main networks. The main condition is that the owner is an agro–industrial enterprise that is able to provide the required amount of raw materials and cover 95% of the costs, taking into account the savings achieved. The company’s participation in the project is feasible as it is required to comply with waste disposal abd eco-efficiency legislation. The paper theoretically substantiates the possible economic benefits for the enterprise, which is the area of future research. The findings are of theoretical and practical importance. This methodology can be applied whenassessing the efficiency of using biogas plants when an agro-industrial enterprise enters the retail electricity market.

Keywords: biogas plant; renewable energy; main gas supply; liquefied gas; economic efficiency (search for similar items in EconPapers)
JEL-codes: O22 Q35 Q42 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:aiy:jnjaer:v:24:y:2025:i:1:p:216-256

DOI: 10.15826/vestnik.2025.24.1.008

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