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Economic Feasibility of Agricultural Biogas Production by Farms in Ukraine

Galyna Trypolska, Sergii Kyryziuk, Vitaliy Krupin, Adam Wąs and Roman Podolets
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Galyna Trypolska: State Institution Institute for Economics and Forecasting of the National Academy of Sciences of Ukraine, Panasa Myrnoho 26, 01011 Kyiv, Ukraine
Sergii Kyryziuk: State Institution “Center for Evaluation of Activity of Research Institutions and Scientific Support of Regional Development of Ukrainе NАS of Ukraine”, Volodymyrska 54, 01601 Kyiv, Ukraine
Adam Wąs: Institute of Economics and Finances, Warsaw University of Life Sciences (SGGW), Nowoursynowska 166, 02-787 Warsaw, Poland
Roman Podolets: State Institution Institute for Economics and Forecasting of the National Academy of Sciences of Ukraine, Panasa Myrnoho 26, 01011 Kyiv, Ukraine

Energies, 2021, vol. 15, issue 1, 1-23

Abstract: Renewable energy generation in Ukraine is developing slower than state strategies and expectations, with the installations for energy generation based on biogas currently being among the lowest in terms of installed capacity. Most of those involved in energy generation from agricultural biogas are large enterprises, while the small and medium-sized farms are far less involved. Thus the article aims to assess the economic feasibility of biogas production from agricultural waste by specific farm types and sizes, with a special focus on small and medium-sized farms. The research results present findings in two dimensions, first defining the economic feasibility of biogas installations in Ukraine based on investment costs and the rate of return at both the current and potential feed-in tariff, and second, analyzing the influence of state regulation and support on the economic feasibility of agricultural biogas production in Ukraine. The results emphasize that the construction of small generation capacities does not provide sufficient funds under the current feed-in tariff to meet the simple return period expected by the domestic financing institutions. Except for the general support programs for agricultural activities, there are no support funds specifically for biogas producers, while there is tight competition with wind and solar energy due to diversified feed-in tariffs.

Keywords: agricultural biogas; farm; economic feasibility; investment; LCOE; state support; feed-in tariff; Ukraine (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2021
References: View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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