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Cost Analysis of straw-based power generation in Jiangsu Province, China

Listed author(s):
  • Zhang, Qin
  • Zhou, Dequn
  • Zhou, Peng
  • Ding, Hao

As one of the most developed provinces in China, Jiangsu Province has been actively developing bio-energy in order to deal with its electricity supply shortage. By the end of 2010, there are 12 grid-connected straw-based power plants, but only two of them are profitable in this province. This paper presents a simple and detailed method for estimating the cost of straw-based power generation with life cycle analysis, and identifies the main causes for the financial deficit of these plants through a sensitivity analysis and survey. It concludes that: (i) compared with coal-fired power generation, the cost of straw-based power generation is indeed high. (ii) The fuel cost takes the largest share in the operation cost. (iii) The basic causes of the high cost are from straw characteristics, mismatch between demand and supply, immature technology, inappropriate project planning and low motivation of farmer selling straw. Based on the basic causes, we propose the countermeasures.

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Article provided by Elsevier in its journal Applied Energy.

Volume (Year): 102 (2013)
Issue (Month): C ()
Pages: 785-793

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Handle: RePEc:eee:appene:v:102:y:2013:i:c:p:785-793
DOI: 10.1016/j.apenergy.2012.08.032
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  1. Delivand, Mitra Kami & Barz, Mirko & Gheewala, Shabbir H., 2011. "Logistics cost analysis of rice straw for biomass power generation in Thailand," Energy, Elsevier, vol. 36(3), pages 1435-1441.
  2. Delivand, Mitra Kami & Barz, Mirko & Gheewala, Shabbir H. & Sajjakulnukit, Boonrod, 2011. "Economic feasibility assessment of rice straw utilization for electricity generating through combustion in Thailand," Applied Energy, Elsevier, vol. 88(11), pages 3651-3658.
  3. Dassanayake, Geekiyanage Disela Malinga & Kumar, Amit, 2012. "Techno-economic assessment of triticale straw for power generation," Applied Energy, Elsevier, vol. 98(C), pages 236-245.
  4. Suramaythangkoor, Tritib & Gheewala, Shabbir H., 2010. "Potential alternatives of heat and power technology application using rice straw in Thailand," Applied Energy, Elsevier, vol. 87(1), pages 128-133, January.
  5. Liu, Hongtao & Polenske, Karen R. & Xi, Youmin & Guo, Ju'e, 2010. "Comprehensive evaluation of effects of straw-based electricity generation: A Chinese case," Energy Policy, Elsevier, vol. 38(10), pages 6153-6160, October.
  6. Mobini, Mahdi & Sowlati, Taraneh & Sokhansanj, Shahab, 2011. "Forest biomass supply logistics for a power plant using the discrete-event simulation approach," Applied Energy, Elsevier, vol. 88(4), pages 1241-1250, April.
  7. Liu, Jin & Wu, Jianguo & Liu, Fengqiao & Han, Xingguo, 2012. "Quantitative assessment of bioenergy from crop stalk resources in Inner Mongolia, China," Applied Energy, Elsevier, vol. 93(C), pages 305-318.
  8. Nasiri, Fuzhan & Zaccour, Georges, 2009. "An exploratory game-theoretic analysis of biomass electricity generation supply chain," Energy Policy, Elsevier, vol. 37(11), pages 4514-4522, November.
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