Economic feasibility of gasification scenarios in remote areas (the case of Sverdlovsk region, Russia)

Galina S. Chebotareva () and Artyom A. Dvinayninov
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Galina S. Chebotareva: Ural Federal University, Ekaterinburg, Russia
Artyom A. Dvinayninov: Ural Federal University, Ekaterinburg, Russia

R-Economy, 2023, vol. 9, issue 1, 5-18

Abstract: Relevance. Structural changes in the Russian market create new trends, including energy supply in remote areas. The government is planning to redirect natural gas to domestic buyers. However, according to the estimates of biogas potential, it can fully meet the energy needs of households with no access to centralized gas supply. Research objective. to choose the optimal scenario of gasification in remote areas by evaluating the economic feasibility of several alternatives, including biogas technologies and the centralized gas supply system. Data and methods. The study focuses on the case of Sverdlovsk region and considers three scenarios of gasification in its remote areas. The method includes the calculation of the full discounted value of energy facilities, the comparison of their productive capacity, the analysis of the key external factors. Results. In terms of cost, the most economically feasible is the scenario of biogas plants using by individual households. However, accounting productivity, the scenarios based on the use of centralized gas supply or collective biogas plants. The economic feasibility of these two scenarios depends on the number of buildings serviced. Conclusions. The optimal scenario is the centralized gas supply. Despite its high costs, it can ensure the uninterrupted supply of the necessary energy amount to private households and does not depend on factors such as the availability of manure and organic waste and weather conditions. One more advantage is that Russia currently has a more elaborate and adequate legal framework regulating its use than for the other two options.

Keywords: biogas plant; gasification; gas supply system; remote areas; region; cost evaluation; scenario analysis; energy consumption in households; economic feasibility (search for similar items in EconPapers)
JEL-codes: G31 L95 O22 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:aiy:journl:v:9:y:2023:i:1:p:5-18

DOI: 10.15826/recon.2023.9.1.001

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