Financing & Public Support of Biogas Plants - Revision history

Johanna at 11:58, 10 February 2020

2020-02-10T11:58:30Z

Ranisha at 11:30, 10 February 2020

2020-02-10T11:30:25Z

Ranisha: /* Sources of Financing */

2020-02-10T11:30:08Z

‎Sources of Financing

Ranisha: /* Sources of Financing */

2020-02-10T11:28:36Z

‎Sources of Financing

Ranisha: /* Sources of Financing */

2020-02-10T11:26:35Z

‎Sources of Financing

Lisafeldmann at 15:13, 2 December 2015

2015-12-02T15:13:52Z

Show changes

Ranisha: /* Economic Effects of Biogas Plants */

2015-11-17T12:41:09Z

‎Economic Effects of Biogas Plants

Ranisha at 12:39, 17 November 2015

2015-11-17T12:39:26Z

Ranisha: /* Economic Effects of Biogas Plants */

2015-11-17T12:36:53Z

‎Economic Effects of Biogas Plants

Ranisha: /* Economic Consideration */

2015-11-17T12:30:55Z

‎Economic Consideration

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 [[Portal:Biogas|► Back to Biogas Portal]]
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 The various sources have to be individually examined for their ability to provide the means.
-The figure shows different financial support to biodigesters in 2018, for the biogas implemented by SNV<ref>Household biodigesters installed in Asia, Africa, and Latin America in 2018, SNV.
+The figure shows different financial support to biodigesters in 2018, for the biogas implemented by SNV<ref>Household biodigesters installed in Asia, Africa, and Latin America in 2018, SNV.fckLRhttps://energypedia.info/wiki/File:Household_Biodigesters_Installed_in_Asia,_Africa,_and_Latin_America_in_2018.pdf</ref> [[File:Biogas subsidies.png|center|800px|alt=Biogas subsidies.png]]
-https://energypedia.info/wiki/File:Household_Biodigesters_Installed_in_Asia,_Africa,_and_Latin_America_in_2018.pdf</ref> [[File:Biogas subsidies.png|center|800px|alt=Biogas subsidies.png]]
 [[Financing & Public Support of Biogas Plants#toc|► Go to Top]]
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 [[Financing & Public Support of Biogas Plants#toc|► Go to Top]]<br/>
+<br/>
 = Research and Development<br/> =
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 As a rule of thumb, financial incentives can be regarded as an essential prerequisite for the success of a large scale biogas program. If at least 70% of all households within the target area are to be supplied with biogas, all investors should be granted special allowances. The process of discussion requisite to defining the range of participation within the target area or community can, in itself, have a favorable impact on the project. Nonetheless, the maximum possible personal contribution should, as a matter of principle, be demanded of each household involved in a subsidized program. A maximum of contribution from the owner during construction of the biogas plant is conducive to the personal involvement of the system's future owner.
+<br/>
 = <span style="font-size: 19px;  line-height: 23.799999237060547px">Revenues</span> =
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 [[Financing & Public Support of Biogas Plants#toc|► Go to Top]]<br/>
+<br/>
 = Financing of Plant Operation<br/> =
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 = References =
 *'''Bateman, Ian''': Ökologische und ökonomische Bewertung. In: O' Riordan, T. (Hrsg.): Umweltwissenschaften und Umweltmanagement. Berlin u.a. 1996. S. 81-117.
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 <div><br/></div><div>[[Financing & Public Support of Biogas Plants#toc|► Go to Top]]<br/></div>
 [[Category:Biogas]]

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 [[Portal:Biogas|► Back to Biogas Portal]]
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 The cost necessary for the construction of [[Parts of a Biogas Plant|biogas plants]] frequently exceeds the means at the disposal of the investor, in other words he cannot cover them from his regular income or savings. This could also apply to the larger replacement investments occurring at certain intervals during the economic lifetime of the plant. Besides the non-recurring i.e. a-periodical costs, the running costs of the plant have to be borne. This solvency outflow however, is set against solvency inflow in the form of regular revenue. A solvency analysis can show how far the net solvency outflow has to be financed and how much scope there will be from net solvency inflow.
 = Sources of Financing =
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 [[Financing & Public Support of Biogas Plants#toc|► Go to Top]]
 = Financing by Credit =
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 <div><br/></div><div>[[Financing & Public Support of Biogas Plants#toc|► Go to Top]]<br/></div>
 [[Category:Financing_and_Funding]]

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 The various sources have to be individually examined for their ability to provide the means.
-The figure shows an overview of different financial support to biodigesters implemented by SNV in 2018.<ref>Household biodigesters installed in Asia, Africa, and Latin America in 2018, SNV.
+The figure shows different financial support to biodigesters in 2018, for the biogas implemented by SNV<ref>Household biodigesters installed in Asia, Africa, and Latin America in 2018, SNV.
 https://energypedia.info/wiki/File:Household_Biodigesters_Installed_in_Asia,_Africa,_and_Latin_America_in_2018.pdf</ref> [[File:Biogas subsidies.png|center|800px|alt=Biogas subsidies.png]]

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 The cost necessary for the construction of [[Parts of a Biogas Plant|biogas plants]] frequently exceeds the means at the disposal of the investor, in other words he cannot cover them from his regular income or savings. This could also apply to the larger replacement investments occurring at certain intervals during the economic lifetime of the plant. Besides the non-recurring i.e. a-periodical costs, the running costs of the plant have to be borne. This solvency outflow however, is set against solvency inflow in the form of regular revenue. A solvency analysis can show how far the net solvency outflow has to be financed and how much scope there will be from net solvency inflow.
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 <u>In general the following can be seen as sources:</u>
-<div style="text-align: center"><center>
 *'''Grants and credits from institutes for economic aid'''
 *'''Means from the national budget of the developing country (public support)'''
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 *'''Resources of the project initiator'''
 *'''Fees/contributions from the user'''
-The figure shows an overview of different financial support to biodigesters implemented by SNV.
+The various sources have to be individually examined for their ability to provide the means.
-[[File:Biogas subsidies.|800px|center]]
 [[Financing & Public Support of Biogas Plants#toc|► Go to Top]]

@@ Line 5: / Line 5: @@
 The cost necessary for the construction of [[Parts of a Biogas Plant|biogas plants]] frequently exceeds the means at the disposal of the investor, in other words he cannot cover them from his regular income or savings. This could also apply to the larger replacement investments occurring at certain intervals during the economic lifetime of the plant. Besides the non-recurring i.e. a-periodical costs, the running costs of the plant have to be borne. This solvency outflow however, is set against solvency inflow in the form of regular revenue. A solvency analysis can show how far the net solvency outflow has to be financed and how much scope there will be from net solvency inflow.
 = Sources of Financing =
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 <u>In general the following can be seen as sources:</u>
 <div style="text-align: center"><center>
 *'''Grants and credits from institutes for economic aid'''
 *'''Means from the national budget of the developing country (public support)'''
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 *'''Resources of the project initiator'''
 *'''Fees/contributions from the user'''
 </center></div>
 The various sources have to be individually examined for their ability to provide the means.
 [[Financing & Public Support of Biogas Plants#toc|► Go to Top]]
 = Financing by Credit =

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 = Economic Effects of Biogas Plants =
 *'''[[Macro-economic Evaluation of Biogas Plants|Macro-economic Evaluation of Biogas Plants]]'''
 = Further Information =

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 [[Portal:Biogas|► Back to Biogas Portal]]
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 [[Financing_&_Public_Support_of_Biogas_Plants#toc|► Go to Top]]<br/>
 = Financing of Plant Operation<br/> =
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 [[Financing_&_Public_Support_of_Biogas_Plants#toc|► Go to Top]]<br/>
-= <span style="font-size: 19px; line-height: 23.799999237060547px">Economic Consideration</span> =
+= Economic Consideration =
 <u>Economically, electricity from biogas must compete with electricity generation from fossil fuels and other renewable energies such as hydro power. Supporting factors are:</u>
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+= Economic Effects of Biogas Plants =
+*'''[[Macro-economic Evaluation of Biogas Plants|Macro-economic Evaluation of Biogas Plants]]'''
-−
-= Energy and Slurry =
-−
-== Energy ==
-−
-Many developing countries, especially the LLDC base their energy consumption upon traditional energy sources (wood, plants and crop residues and animal waste, as well as animal traction and human muscle power). Biomass energy use varies widely in developing countries from as little as 5% in [[Argentina_Energy_Situation|Argentina]] to over 90% of the total supply of energy sources in countries like [[Ethiopia_Energy_Situation|Ethiopia]], [[Tanzania_Energy_Situation|Tanzania]], [[Rwanda_Energy_Situation|Rwanda]], [[Sudan_Energy_Situation|Sudan]] and [[Nepal_Energy_Situation|Nepal]]. In the case of wood, plant and animal waste, according to local necessities, the energy source is collected and used. Surplus of energy sources are traded informally on the local and regional level. In so far estimations on the potential effects of biogas use instead of the use of traditional energy sources do not have any impact on government`s budget, presuming the non-existence of taxes on traditional energy sources.
-−
-Negative consequences on the income of the local traders may result, presuming less demand on traditionally traded energy sources, causing a slump of its prices. On the other side biogas users may continue with trading of traditional energy sources on more distant markets (or even will be encouraged to trade on regional levels), not willing to forego secure earnings.
-−
-Consequently, the substitution effect of biogas results primarily in environmental benefits due to less consumption of i.e. firewood, leading to less deforestation (under the presumption of a declining or constant price of firewood).
-−
-Commercially or monetarily traded sources like petroleum, coal and natural gas on the other hand have impacts on the balance of payments and therefore influence governmental budgets.
-−
-The macro-economic effect of a biogas use by import substitution of i.e. kerosene is due to decreasing duty income. On the other side petroleum import dependancy sinks, giving more relative stability to an economy.
-−
-Although only less than 10% of a country's commercial energy is consumed by the rural population (LLDC and in some MSAC), the effects of biogas use, substituting systems for generation, transmission and distribution of electricity shall be mentioned.
-−
-The macro-economic benefits of a biogas plant result in its self-efficienciy and reliability (benefits from avoidance of black-outs and supply interruptions) and in less costs for networks and distribution infrastructure. On the other side a national wide operating power supplier competes with a biogas supplier as unserved energy implies by revenue forgone as a result of non-supplying its customers.
-−
-[[Financing_&_Public_Support_of_Biogas_Plants#toc|► Go to Top]]<br/>
-−
-=== Slurry ===
-−
-On the assumption that the slurry of the biogas plant is used as fertilizer and, when spread on the fields, it increases the crop production, that is more productive than the undigested dung, the economies' benefit amounts to a higher supply of fertilizer given the same output level of crops.
-−
-Moreover, the substitution of commercial fertilizers with slurry produced by biogas technology reduces the impacts on balance of payments (assuming a dependence on imports of chemical fertilizers).
-−
-The consequence of reliance on digested dung and residues (in a biogas plant) is that valuable nutrients and organic matter are led back to the soil in an improved stage, rising agricultural productivity and soil stability (combating devegetation and desertification). The higher productivity of crop production results in higher yields, maybe keeping pace with the increase in population (maybe: because one has to estimate the balance of populational fluctuations).
-−
-[[Financing_&_Public_Support_of_Biogas_Plants#toc|► Go to Top]]<br/>
-−
-= Final Remarks =
-−
-Biogas gained by a three-step digestion process (two hydrolysis phases followed by one acid phase) containing 60-80 per cent methane and 20-40 per cent carbon dioxide makes it a potencial source of renewable energy.
-−
-Given a heating value of about 5,5 kcal/m<sup>3</sup>, its uses for electricity generation, as a heat resource, for internal combustion engines, boilers, as a suplementary fuel for diesel engines or substitution of firewood for cooking purposes in rural areas are widely reported.
-−
-Especially the economic benefits of biogas utilization in selected agro-industries (palm oil mills, tapioca starch factories and alcohol destilleries) amount to savings due to electricity generation by biogas, fertilizer savings and rising productivity in agriculture. Moreover, the environmental benefits due to substitution of energy sources based on wood (firewood, charcoal) or on fossil energy sources are outstanding.
-−
-To assess correctly the macro-economic benefits of biogas production in small size biogas plants is a difficult undertaking. Generally, very optimistic assumptions on positive effects on employment, balance-of-payments and health sector can cause overwhelming expectations on planning biogas based energy systems.
-−
-Nevertheless, these external economies are substantially influenced by the quantity and (regional) density of biogas plants, contributing to the countries' share of energy sources.
-−
-Without any doubt -even if there would be constructed only one biogas plant in a country - the following valueable assets of biogas use from the environmental point of view can be determined.
-−
-As CO<sub>2</sub> generation by burned biogas only amouts to 80 per cent of the CO<sub>2</sub> generation of fired fuel oil (per kWh electrical energy) and is even more advantageous in relation to coal (about 50 per cent), the environmental benefits of biogas in relation to fossil fuels are indisputable.
-−
-Due to the high cohere efficiency of wood (0.7 kg CO<sub>2</sub> per kWh gross energy), the substitution of the wood based biomasses by biogas rise the national and global storage capacity of CO<sub>2</sub>.
-−
-Facing more and more the challenging phenomena of global warming and setting global standards of polluting potentials, environmental external economies are getting steadily very important issues and may stimulate a government to start investing in appropriate energy technologies rather than to follow the conventional way to solve the problem of generating energy in remote areas by rural electrification based on fossil fuels.
-−
-A financially viable and well structured joint implementation concept may help to generate (financial) facilities to governments in order to invest in energy generation, based on sustainable energy sources. In how far and to which partner (of the partnership) the positive effects of the project shall be ascribed to, may be determined politically. In the long run each saving of irretrievable damage of environment helps to saving the world in a whole.
-−
-[[Financing_&_Public_Support_of_Biogas_Plants#toc|► Go to Top]]<br/>
 = Further Information =
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 <div><br/></div><div>[[Financing_&_Public_Support_of_Biogas_Plants#toc|► Go to Top]]<br/></div>
 [[Category:Financing_and_Funding]]

← Older revision		Revision as of 12:36, 17 November 2015
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−	~~= Economic Effects of Biogas Plants =~~

−	~~When evaluating biogas plants from a macro-economic point of view there are several reasons why price adjustments in favour of the biogas technology are required.~~

−	*The production of biogas creates external economies. It means that the biogas production influences the utility function of the consumer (i.e. better sanitary and hygienic conditions) and the social welfare function of the society (i.e. reduced health costs). Considering national wide effects on energy balance, the biogas supply creates external economies on the balance of payments to the economy (import substitution of fossil fuels). As well external diseconomies then should be included, amounting to less income of import duties because of substitution of traded fuel (i.e. petroleum) by biogas.
−	*Biogas use, replacing conventional fuels like kerosene or firewood, allows for the conservation of environment. It therefore, increases its own value by the value of i.e. forest saved or planted.
−	*The price of supplied energy produced by biogas competes with distorted prices on the national or regional level of the energy market. Monopolistic practices, which enable energy suppliers to sell their energy at a price higher than the competition price, still dominate the energy market in many countries. A decentralized, economically self-sufficient biogas unit therefore, - under competitive conditions - provides its energy without market distortions.
−	*Furthermore, other macro-economic benefits arise when comparing on the one hand the benefits of decentralized energy generation (improved power system security) and the disadvantages of centralized energy generation: incremental costs of investment in additional networks and the costs of losses on the transmission network, due to the distance of energy customers, may be added to the benefits of decentralized energy generation from the macro-economic point of view.
−	*Labour intensive decentralized biogas units, on the regional level, improve income distribution amongst income brackets and reduce regional disparities, enhancing the attractiveness of rural life.
−	*Investors should aim at carrying out the construction of biogas plants without any imported materials in the long run. The lower the import content of the total plant costs (i.e. amount of steel), the less the external diseconomies which may arise in consequence of sliding exchange rates.
−
−	In a macro-economic level these effects are significant and only unfold themselves fully if biogas plants are introduced over a wide area i.e. for closed settlement areas. This refers primarily to biogas plants as an improvement for inferior sanitary and hygienic conditions for members of the poorer classes. These are problems which cannot be solved on an individual basis but only by collective decisions and measures.
−
−	How far biogas plants in a definite case are the suitable and advantageous solution to a problem has to be discovered with reference to alternative sectoral measures. The macro-economic evaluation needs to account for effects of benefits within the fields.
−
−	~~[[Financing_&_Public_Support_of_Biogas_Plants#toc\|► Go to Top]]<br/>~~

	= Energy and Slurry =		= Energy and Slurry =

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 Most of the commercially run biogas power plants in developing countries are of medium size and are installed in industrial contexts, primarily using organic waste material from agro-industrial production processes such as cow, pig and chicken manure, slaughterhouse waste, or residues from sisal and coffee processing.
-Assessments of economic feasibility are contradictory or inconsistent. Many press releases and information from biogas power plant producers refer to payback periods of only 1.5 – 2.5 years. In such cases, the electricity from biogas plants can be compared to the price of elec-tricity provided through the national grid or the price of bottled LPG.
+Assessments of economic feasibility are contradictory or inconsistent. Many press releases and information from biogas power plant producers refer to payback periods of only 1.5 – 2.5 years. In such cases, the electricity from biogas plants can be compared to the price of electricity provided through the national grid or the price of bottled LPG.
 However these figures are unrealistic, except for direct thermal energy use as for cooking energy, or in very few locations with extremely expensive diesel fuel.
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 [[Financing_&_Public_Support_of_Biogas_Plants#toc|► Go to Top]]<br/>