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A cost-benefit analysis of generating electricity from biomass

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  • O’Mahoney, Amy
  • Thorne, Fiona
  • Denny, Eleanor

Abstract

A key challenge internationally is the design of future electricity systems which will bring about emissions savings and fuel security at least cost. Peat is used to generate electricity in several EU countries, mainly to take advantage of indigenous resources and increase fuel mix diversity. The Irish government has introduced a target of 30% cofiring of peat and biomass by 2015. This paper assesses the feasibility of achieving this target by calculating the available indigenous biomass resource capable of being cofired; the cost of meeting the target; the benefits in terms of carbon abatement; and finally the present value in economic terms of meeting the target. Results demonstrate that Ireland has only half the necessary resource to meet the 30% target and that the net cost of doing so is greater than the cost of what is currently being paid for peat, in all of the scenarios considered. Thus, it is concluded that while it may be technically possible to meet the target by combining national resources with imported biomass this is never the least cost option, and as a result the targeted focus of Government policy may need to be reconsidered.

Suggested Citation

  • O’Mahoney, Amy & Thorne, Fiona & Denny, Eleanor, 2013. "A cost-benefit analysis of generating electricity from biomass," Energy Policy, Elsevier, vol. 57(C), pages 347-354.
    • Handle: RePEc:eee:enepol:v:57:y:2013:i:c:p:347-354
    DOI: 10.1016/j.enpol.2013.02.005
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    References listed on IDEAS

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    2. McGrath, Luke & Hynes, Stephen & McHale, John, 2019. "Augmenting the World Bank's estimates: Ireland's genuine savings through boom and bust," Ecological Economics, Elsevier, vol. 165(C), pages 1-1.
    3. Collins Okello & Stefania Pindozzi & Salvatore Faugno & Lorenzo Boccia, 2014. "Appraising Bioenergy Alternatives in Uganda Using Strengths, Weaknesses, Opportunities and Threats (SWOT)-Analytical Hierarchy Process (AHP) and a Desirability Functions Approach," Energies, MDPI, vol. 7(3), pages 1-22, February.
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    5. Chugh, Shikha & Yu, T. Edward & Jackson, Samuel & Larson, James & English, Burton & Cho, Seong-Hoon, 2015. "Exploring the Potential to Penetrate the Energy Markets for Tennessee-Produced Switchgrass," 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia 196899, Southern Agricultural Economics Association.
    6. Choi, Gobong & Huh, Sung-Yoon & Heo, Eunnyeong & Lee, Chul-Yong, 2018. "Prices versus quantities: Comparing economic efficiency of feed-in tariff and renewable portfolio standard in promoting renewable electricity generation," Energy Policy, Elsevier, vol. 113(C), pages 239-248.
    7. Denny, Eleanor & O'Mahoney, Amy & Lannoye, Eamonn, 2017. "Modelling the impact of wind generation on electricity market prices in Ireland: An econometric versus unit commitment approach," Renewable Energy, Elsevier, vol. 104(C), pages 109-119.
    8. Gobong Choi & Eunnyeong Heo & Chul-Yong Lee, 2018. "Dynamic Economic Analysis of Subsidies for New and Renewable Energy in South Korea," Sustainability, MDPI, vol. 10(6), pages 1-19, June.
    9. Lynch, Muireann A, 2017. "Re-evaluating Irish energy policy in light of brexit," Research Notes RN20170201, Economic and Social Research Institute (ESRI).
    10. Maria G. Savvidou & Pavlos K. Pandis & Diomi Mamma & Georgia Sourkouni & Christos Argirusis, 2022. "Organic Waste Substrates for Bioenergy Production via Microbial Fuel Cells: A Key Point Review," Energies, MDPI, vol. 15(15), pages 1-53, August.
    11. McQuinn, Kieran & Foley, Daniel & O'Toole, Conor, 2017. "Quarterly Economic Commentary, Summer 2017," Forecasting Report, Economic and Social Research Institute (ESRI), number QEC20172, June.

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