Cost/benefit analysis of biomass energy supply options for rural smallholders in the semi-arid eastern part of Shinyanga Region in Tanzania

W.T. Wiskerke, V. Dornburg, C.D.K. Rubanza, R.E. Malimbwi and A.P.C. Faaij

Renewable and Sustainable Energy Reviews, 2010, vol. 14, issue 1, 148-165

Abstract: This study analyzes the economic feasibility of sustainable smallholder bio-energy production under semi-arid conditions. The eastern part of Shinyanga region in Tanzania was chosen as a case study area. Three different sustainable biomass energy supply systems were compared by means of cost/benefit analysis: a small-scale forestation project for carbon sequestration, a short rotation woodlot and a Jatropha plantation, thereby using the produced Jatropha oil as a substitute for fuelwood or diesel. Rotational woodlots are most profitable with a Net Present Value of up to US$2007 1165/ha, a return on labour of up to US$2007 6.69/man-day and a fuelwood production cost of US$2007 0.53/GJ, compared to a local market price of US$2007 1.95/GJ. With a production cost of US$2007 19.60/GJ, Jatropha oil is too expensive to be used as an alternative for fuelwood. Instead it can be utilized economically as a diesel substitute, at an observed diesel cost of US$2007 1.49/l. The mean annual biomass increment (MAI) in semi-arid East Shinyanga is too low to collect sufficient benefits from trading forestation carbon credits under the Clean Development Mechanism (CDM) to cover the costs of forestation and forest management.

Keywords: Bio-energy; CDM; Rotational; woodlots; Jatropha; Smallholder; Semi-arid (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (13)

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