Building Agro-Energy Supply Chains in the Basilicata Region: Technical and Economic Evaluation of Interchangeability between Fossil and Renewable Energy Sources

Severino Romano, Mario Cozzi, Francesco Di Napoli and Mauro Viccaro
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Severino Romano: School of Agricultural Sciences, Forestry, Food and Environment—SAFE, University of Basilicata, Potenza 85100, Italy
Mario Cozzi: School of Agricultural Sciences, Forestry, Food and Environment—SAFE, University of Basilicata, Potenza 85100, Italy
Francesco Di Napoli: School of Agricultural Sciences, Forestry, Food and Environment—SAFE, University of Basilicata, Potenza 85100, Italy
Mauro Viccaro: School of Agricultural Sciences, Forestry, Food and Environment—SAFE, University of Basilicata, Potenza 85100, Italy

Energies, 2013, vol. 6, issue 10, 1-24

Abstract: In this study, we present a model for the implementation of agro-energy chains based on the actual availability of forest biomass and the real demand for energy (heat) in the area of the Basilicata region, Italy. The demand for energy has been estimated by drawing on the database of the Ministry of Economic Development or by calculating the Annual Energy Requirement (AER) index, while for the estimate of the available forest biomass, reference was made to the public forest lands managed according to forestry management plans. The collected data were cross-checked with a view to detecting the technical and economic feasibility of district heating systems. The technical evaluation has mainly focused on the energetic and plant aspects, while the economic assessment was directed to defining the cost effectiveness criteria [Net Present Value (NPV), Internal Rate of Return (IRR), Payback Period] that can measure the profitability of the investment. In the economic evaluation we also included the national public incentives, designed to encourage the production of energy from renewable sources in compliance with the international agreements signed by Italy for the reduction of greenhouse gases (GHGs).

Keywords: biomass; agro-energetic chain; district heating systems; cost-effective use of biomass; green economy (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: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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