Logistics cost analysis of rice straw for biomass power generation in Thailand

The logistics of the fuel supply have a large impact on the economy of a biomass power generation facility, especially for low density biomass fuels like straw. A detailed cost analysis of a typical rice straw logistics process for two baling options in three regions of Thailand shows that the costs for all logistics operations vary from a minimum of 18.75 USD/t for small rectangular bales in the Northern region of Thailand to maximum 19.89 USD/t for large rectangular bales in the North-eastern region. The difference in costs is not very significant due to the higher ownership and operating costs of the equipment for using large rectangular bales; however, the specific fuel consumption cost is substantially lower by around 17.5% and a total transport cost reduction is about 31.5%. Analysis of the logistics economies of scale for projected power plant capacities of 2-35 MW_e showed that each doubling the capacity of the energy facility increases the specific costs of the logistics operations only by around 4% in all regions.     

Production capacity estimation by reservoir numerical simulation of northwest (NW) Sabalan geothermal field, Iran

A three dimensional numerical model of the northwest (NW) Sabalan geothermal system was developed on the basis of the designed conceptual model from available field data. A numerical model of the reservoir was expressed with a grid system of a rectangular prism of 12 km × 8 km with 4.6 km height, giving a total area of 96 km². The model has 14 horizontal layers ranging in thickness between 100 m to 1000 m extending from a maximum of 3600 to −1000 m a.s.l. Fifteen rock types were used in the model to assign different horizontal permeabilities from 5.0 × 10⁻¹⁸ to 4.0 × 10⁻¹³ m² based on the conceptual model.Natural state modeling of the reservoir was performed, and the results indicated good agreements with measured temperature and pressure in wells. Numerical simulations were conducted for predicting reservoir performances by allocating production and reinjection wells at specified locations. Three different exploitation scenarios were examined for sustainability of reservoir for the next 30 years. Effects of reinjection location and required number of makeup wells to maintain the specified fluid production were evaluated. The results showed that reinjecting at Site B, immediate adjacent to production zone, is most effective for pressure maintenance of the system.On the base of existing data and assumptions the reservoir can sustain producing fluid equivalent to 50 MW_e of electricity for more than 30 years. The reservoir can produce the maximum amount of fluids equivalent to 90-100 MW_e for only 5 years, but the production capacity decreases to 50 MW_e after 20 years of operation because of pressure and enthalpy drop. The reservoir can sustain 50 MW_e over 100 years that can be defined as a sustainable production level of the field.     

Case study feasibility analysis of the Pelamis wave energy convertor in Ireland, Portugal and North America

The performance and economic viability of the Pelamis wave energy converter (WEC) has been investigated over a 20 year project time period using 2007 wave energy data from various global locations: Ireland, Portugal, USA and Canada. Previous reports assessing the Pelamis quote a disparate range of financial returns for the Pelamis, necessitating a comparative standardised assessment of wave energy economic indicators. An Excel model (NAVITAS) was created for this purpose which estimated the annual energy output of Pelamis for each location using wave height (H_s) and period (T_z) data, and produced financial results dependant on various input parameters. The economic indicators used for the analysis were cost of electricity (COE), net present value (NPV) and internal rate of return (IRR), modelled at a tariff rate of €0.20/kWh). Analysis of the wave energy data showed that the highest annual energy output (AEO) and capacity for the Pelamis was the Irish site, as expected. Portugal returned lower AOE similar to the lesser North American sites. Monthly energy output was highest in the winter, and was particularly evident in the Irish location. Moreover, the difference between the winter wave energy input and the Pelamis energy output for Ireland was also significant as indicated by the capture width, suggesting that Pelamis design was not efficiently capturing all the wave energy states present during that period. Modelling of COE for the various case study locations showed large variation in returns, depending on the number of WEC modelled and the initial cost input and learning curve. COE was highest when modelling single WEC in comparison to multiples, as well as when using 2004 initial costs in comparison to 2008 costs (at which time price of materials peaked). Ireland returned the lowest COE of €0.05/kWh modelling over 100 WEC at 2004 cost of materials, and €0.15/kWh at 2008 prices. Although favourable COE were recorded from some of the modelled scenarios, results indicated that NPV and IRR were not encouraging when using a €0.20/kWh tariff. It is recommended that a tariff rate of €0.30/kWh be considered for Ireland, and higher rates for other locations. In conclusion, Ireland had the most abundant wave energy output from the Pelamis. COE returns for Ireland were competitive for large number of WEC, even at peak costs, but it is recommended that careful analysis of NPV and IRR should be carried out for full economic assessment. Finally, a standardised method of COE reporting is recommended, using fixed WEC number or MW size, as well as standardised learning/production curves and initial costs, to facilitate confidence in investment decisions based on COE.     

Biomethanol production from gasification of non-woody plant in South Africa: Optimum scale and economic performance

Methanol production from biomass is a promising carbon neutral fuel, well suited for use in fuel cell vehicles (FCVs), as transportation fuel and as chemical building block. The concept used in this study incorporates an innovative Absorption Enhanced Reforming (AER) gasification process, which enables an efficient conversion of biomass into a hydrogen-rich gas (syngas) and then, uses the Mitsubishi methanol converter (superconverter) for methanol synthesis. Technical and economic prospects for production of methanol have been evaluated. The methanol plants described have a biomass input between 10 and 2000 MW_th. The economy of the methanol production plants is very dependent on the production capacity and large-scale facilities are required to benefit from economies of scale. However, large-scale plants are likely to have higher transportation costs per unit biomass transported as a result of longer transportation distances. Analyses show that lower unit investment costs accompanying increased production scale outweighs the cost for transporting larger quantities of biomass. The unit cost of methanol production mostly depends on the capital investments. The total unit cost of methanol is found to decrease from about 10.66 R/l for a 10 MW_th to about 6.44 R/l for a 60 MW_th and 3.95 R/l for a 400 MW_th methanol plant. The unit costs stabilise (a near flat profile was observed) for plant sizes between 400 and 2000 MW_th, but the unit cost do however continue to decrease to about 2.89 R/l for a 2000 MW_th plant. Long term cost reduction mainly resides in technological learning and large-scale production. Therefore, technology development towards large-scale technology that takes into account sustainable biomass production could be a better choice due to economic reasons.     

A techno-economic comparison of power production by biomass fast pyrolysis with gasification and combustion

This paper presents an assessment of the technical and economic performance of thermal processes to generate electricity from a wood chip feedstock by combustion, gasification and fast pyrolysis. The scope of the work begins with the delivery of a wood chip feedstock at a conversion plant and ends with the supply of electricity to the grid, incorporating wood chip preparation, thermal conversion, and electricity generation in dual fuel diesel engines. Net generating capacities of 1–20 MW_e are evaluated.The techno-economic assessment is achieved through the development of a suite of models that are combined to give cost and performance data for the integrated system. The models include feed pretreatment, combustion, atmospheric and pressure gasification, fast pyrolysis with pyrolysis liquid storage and transport (an optional step in de-coupled systems) and diesel engine or turbine power generation. The models calculate system efficiencies, capital costs and production costs. An identical methodology is applied in the development of all the models so that all of the results are directly comparable.The electricity production costs have been calculated for 10th plant systems, indicating the costs that are achievable in the medium term after the high initial costs associated with novel technologies have reduced. The costs converge at the larger scale with the mean electricity price paid in the EU by a large consumer, and there is therefore potential for fast pyrolysis and diesel engine systems to sell electricity directly to large consumers or for on-site generation. However, competition will be fierce at all capacities since electricity production costs vary only slightly between the four biomass to electricity systems that are evaluated.Systems de-coupling is one way that the fast pyrolysis and diesel engine system can distinguish itself from the other conversion technologies. Evaluations in this work show that situations requiring several remote generators are much better served by a large fast pyrolysis plant that supplies fuel to de-coupled diesel engines than by constructing an entire close-coupled system at each generating site. Another advantage of de-coupling is that the fast pyrolysis conversion step and the diesel engine generation step can operate independently, with intermediate storage of the fast pyrolysis liquid fuel, increasing overall reliability. Peak load or seasonal power requirements would also benefit from de-coupling since a small fast pyrolysis plant could operate continuously to produce fuel that is stored for use in the engine on demand.Current electricity production costs for a fast pyrolysis and diesel engine system are 0.091

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/kWh at 20 MW_e and 0.199

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/kWh at 1 MW_e in the base case studied here reducing to 0.073

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/kWh at 20 MW_e and to 0.146

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/kWh at 1 MW_e when learning effects are included. These systems are handicapped by the typical characteristics of a novel technology: high capital cost, high labour, and low reliability. As such the more established combustion and steam cycle produces lower cost electricity under current conditions.The fast pyrolysis and diesel engine system is a low capital cost option but it also suffers from relatively low system efficiency particularly at high capacities. This low efficiency is the result of a low conversion efficiency of feed energy into the pyrolysis liquid, because of the energy in the char by-product. A sensitivity analysis has highlighted the high impact on electricity production costs of the fast pyrolysis liquids yield. The liquids yield should be set realistically during design, and it should be maintained in practice by careful attention to plant operation and feed quality. Another problem is the high power consumption during feedstock grinding. Efficiencies may be enhanced in ablative fast pyrolysis which can tolerate a chipped feedstock. This has yet to be demonstrated at commercial scale.In summary, the fast pyrolysis and diesel engine system has great potential to generate electricity at a profit in the long term, and at a lower cost than any other biomass to electricity system at small scale. This future viability can only be achieved through the construction of early plant that could, in the short term, be more expensive than the combustion alternative. Profitability in the short term can best be achieved by exploiting niches in the market place and specific features of fast pyrolysis. These include:

• •countries or regions with fiscal incentives for renewable energy such as premium electricity prices or capital grants;
• •locations with high electricity prices so that electricity can be sold direct to large consumers or generated on-site by companies who wish to reduce their consumption from the grid;
• •waste disposal opportunities where feedstocks can attract a gate fee rather than incur a cost;
• •the ability to store fast pyrolysis liquids as a buffer against shutdowns or as a fuel for peak-load generating plant;
• •de-coupling opportunities where a large, single pyrolysis plant supplies fuel to several small and remote generators;
• •small-scale combined heat and power opportunities;
• •sales of the excess char, although a market has yet to be established for this by-product; and
• •potential co-production of speciality chemicals and fuel for power generation in fast pyrolysis systems.

     

Efficiency enhancement of pressurized oxy‐coal power plant with heat integration

The oxy‐coal combustion with carbon dioxide capture and sequestration is among the promising clean coal technologies for reducing CO₂ emissions. Because most of oxy‐coal power plants need to cope with energy penalties from air separation and CO₂ compressor units, the pressurized combustion is added to reduce the electricity demand for the CCS system, and the waste heat of the pressurized flue gas is recovered by the heat integration technique to increase the power generation from steam turbines. Finally, the efficiency enhancement of a 100 MW_e‐scale power plant is successfully validated by Aspen Plus simulation. Copyright © 2014 John Wiley & Sons, Ltd.     

Supply amount and marginal price of renewable electricity under the renewables portfolio standard in Japan

The Renewables Portfolio Standard (RPS) in Japan requires that approximately 1.35% of each retail supplier's electricity sales in FY2010 come from renewable energy sources (RES), for example, photovoltaics, wind, biomass, geothermal, and small hydropower. To help retail suppliers and renewable generators develop effective strategies, this study provides a quantitative analysis of the impact of this measure. We assume the supply conditions for electricity generation from renewable energy sources (RES-E) based on regional resource endowments, and we derive the cost-effective compositions of renewable portfolios, RES-E certificate prices, and additional costs to retail suppliers. The future prospects of RES-E are assessed based on technology, region, and year up to FY2010. The analysis reveals that wind power and biomass power generated from municipal waste will provide the majority of the total supply of RES-E under the RPS. It also indicates that the marginal price of RES-E certificates will be approximately 5.8 JPY/kWh (5.2 USc/kWh) in FY2010, in the case wherein the marginal price of electricity is assumed to be 4 JPY/kWh (3.6 USc/kWh). In order to elaborate on this further, sensitivity analyses for some parameters of RES and the price of electricity are provided. The dynamic supply curves of RES-E certificates are also indicated.     

Current and future financial competitiveness of electricity and heat from energy crops: A case study from Ireland

It has been demonstrated that Miscanthus and willow energy-crop cultivation could be economically competitive with current agricultural land uses at a farm-gate biomass price ranging from €70 to €130 t⁻¹ dry matter [Styles, D., Thorne, F., Jones, M.B., in review. Energy crops in Ireland: An economic comparison of willow and Miscanthus production with conventional farming systems. Biomass and Bioenergy, May 2006]. This paper uses the same farm-gate prices to calculate the economic competitiveness of energy crop electricity and heat production, using a net-present-value (NPV) approach (20-year period, 5% discount rate). Direct and gasified co-firing of willow wood with coal would result in electricity generation 30% or 37% more expensive than coal generation, at current coal and CO₂ allowance prices and a farm-gate biomass cost of €100 t⁻¹. ‘Break-even’ CO₂ allowance prices are €33 and €37 t⁻¹, respectively. However, co-firing of Miscanthus with peat is close to economic competitiveness, and would require a CO₂ allowance price of €16 t⁻¹ to break-even (against a current price of €12 t⁻¹). NPV analyses indicate that wood heat is significantly cheaper than oil, gas or electric heat, excluding existing wood-boiler installation subsidies. Discounted annual savings range from €143 compared with gas to €722 compared with electric heating at the domestic scale and from €3454 to €11,222 at the commercial scale. Inclusion of available subsidies improves the comparative economics of domestic wood heat substantially. The economic advantage of wood heat is robust to variation in fuel prices, discount rates and heat loads. The greatest obstacles to energy-crop utilisation include: (i) a reluctance to consider long-term economics; (ii) possible competition from cheaper sources of biomass; (iii) the need for a spatially coordinated supply and utilisation network.     

State-scale evaluation of renewable electricity policy: The role of renewable electricity credits and carbon taxes

We have developed a state-scale version of the MARKAL energy optimization model, commonly used to model energy policy at the US national scale and internationally. We apply the model to address state-scale impacts of a renewable electricity standard (RES) and a carbon tax in one southeastern state, Georgia. Biomass is the lowest cost option for large-scale renewable generation in Georgia; we find that electricity can be generated from biomass co-firing at existing coal plants for a marginal cost above baseline of 0.2–2.2 cents/kWh and from dedicated biomass facilities for 3.0–5.5 cents/kWh above baseline. We evaluate the cost and amount of renewable electricity that would be produced in-state and the amount of out-of-state renewable electricity credits (RECs) that would be purchased as a function of the REC price. We find that in Georgia, a constant carbon tax to 2030 primarily promotes a shift from coal to natural gas and does not result in substantial renewable electricity generation. We also find that the option to offset a RES with renewable electricity credits would push renewable investment out-of-state. The tradeoff for keeping renewable investment in-state by not offering RECs is an approximately 1% additional increase in the levelized cost of electricity.     

Optimization of an atmospheric air volumetric central receiver system: Impact of solar multiple,storage capacity and control strategy

Portugal has a high potential for concentrated solar power and namely for atmospheric air volumetric central receiver systems (CRS). The solar multiple and storage capacity have a significant impact on the power plant levelized electricity cost (LEC) and their optimization and adequate control strategy can save significant capital for the investors. The optimized proposed volumetric central receiver system showed good performance and economical indicators.For Faro conditions, the best 4 MW_e power plant configuration was obtained for a 1.25 solar multiple and a 2 h storage. Applying control strategy #1 (CS#1) the power plant LEC is 0.234 €/kWh with a capital investment (CAPEX) of € 22.3 million. The capital invested has an internal rate of return (IRR) of 9.8%, with a payback time of 14 years and a net present value (NPV) of € 7.9 million (considering an average annual inflation of 4%). In the case of better economical indicators, the power plant investment can have positive contours, with an NPV close to € 13 million (annual average inflation of 2%) and the payback shortened to 13 years.     

Estimating the manufacturing cost of purely organic solar cells

In this paper we estimate the manufacturing cost of purely organic solar cells. We find a very large range since the technology is still very young. We estimate that the manufacturing cost for purely organic solar cells will range between $50 and $140/m². Under the assumption of 5% efficiency, this leads to a module cost of between $1.00 and $2.83/W_p. Under the assumption of a 5-year lifetime, this leads to a levelized cost of electricity (LEC) of between 49¢ and 85¢/kWh. In order to achieve a more competitive COE of about 7¢/kWh, we would need to increase efficiency to 15% and lifetime to between 15-20 years.     

Combustion and NOx emission characteristics of a retrofitted down-fired 660 MWe utility boiler at different loads

Industrial experiments were performed for a retrofitted 660 MW_e full-scale down-fired boiler. Measurements of ignition of the primary air/fuel mixture flow, the gas temperature distribution of the furnace and the gas components in the furnace were conducted at loads of 660, 550 and 330 MW_e. With decreasing load, the gas temperature decreases and the ignition position of the primary coal/air flow becomes farther along the axis of the fuel-rich pipe in the burner region under the arches. The furnace temperature also decreases with decreasing load, as does the difference between the temperatures in the burning region and the lower position of the burnout region. With decreasing load, the exhaust gas temperature decreases from 129.8 °C to 114.3 °C, while NO_x emissions decrease from 2448 to 1610 mg/m³. All three loads result in low carbon content in fly ash and great boiler thermal efficiency higher than 92%. Compared with the case of 660 MW_e before retrofit, the exhaust gas temperature decreased from 136 to 129.8 °C, the carbon content in the fly ash decreased from 9.55% to 2.43% and the boiler efficiency increased from 84.54% to 93.66%.     

A framework for reviewing the trade-offs between, renewable energy, food, feed and wood production at a local level

High fuel prices and concerns about energy security and anthropogenic climate change are encouraging a transition towards a low carbon economy. Although energy policy is typically set at a national level, tools are needed for people to engage with energy policy at regional and local levels, and to guide decisions regarding land use, distributed generation and energy supply and demand. The aim of this paper is to develop a per-capita approach to renewable energy demand and supply within a landscape and to illustrate the key trade-offs between renewable energy, food, (animal) feed and wood production. The chosen case study area (16,000 ha) of Marston Vale, England is anticipated to have a population density midway between that for England and the UK. The daily per capita demand for energy for heat (31 kWh), transport (34 kWh) and electricity (15 kWh) when combined (80 kWh) was seven-fold higher than the combined demand for food (2 kWh), animal feed (6 kWh), and wood (4 kWh). Using described algorithms, the combined potential energy supply from domestic wind and photovoltaic panels, solar heating, ground-source heat, and municipal waste was limited (<10 kWh p⁻¹ d⁻¹). Additional electricity could be generated from landfill gas and commercial wind turbines, but these have temporal implications. Using a geographical information system and the Yield-SAFE tree and crop yield model, the capacity to supply bioethanol, biodiesel, and biomass, food, feed and wood was calculated and illustrated for three land-use scenarios. These scenarios highlight the limits on meeting energy demands for transport (33%) and heat (53%), even if all of the arable and grassland area was planted to a high yielding crop like wheat. The described framework therefore highlights the major constraints faced in meeting current UK energy demands from land-based renewable energy and the stark choices faced by decision makers.     

Performance of a direct steam generation solar thermal power plant for electricity production as a function of the solar multiple

This paper describes the influence of the solar multiple on the annual performance of parabolic trough solar thermal power plants with direct steam generation (DSG). The reference system selected is a 50 MW_e DSG power plant, with thermal storage and auxiliary natural gas-fired boiler. It is considered that both systems are necessary for an optimum coupling to the electricity grid. Although thermal storage is an opening issue for DSG technology, it gives an additional degree of freedom for plant performance optimization. Fossil hybridization is also a key element if a reliable electricity production must be guaranteed for a defined time span. Once the yearly parameters of the solar power plant are calculated, the economic analysis is performed, assessing the effect of the solar multiple in the levelized cost of electricity, as well as in the annual natural gas consumption.     

Economic feasibility of electricity production from energy plantations present on community-managed forestlands in Madhya Pradesh,India

This paper assesses economic feasibility of utilizing community-managed degraded forest areas for raising energy crops and using the produced biomass for electricity production in the state of Madhya Pradesh, India through gasification technology. Three fast-growing species, three gasifiers of different capacities, three capital costs, and two scenarios of carbon payments were considered for analysis. Sensitivity and risk analyses were undertaken for determining the effects of variations in inputs on selected outputs. Results suggest that 5 million megawatt hour electricity can be generated annually which will prevent 4 million tons of carbon dioxide emissions per year. The production cost of a unit of electricity was found inversely related to the scale of production. The average cost of electricity at the consumer level produced using 100 kW gasifier was $0.15/kWh, which was greater than the price of electricity supplied from grid i.e. $0.08/kWh. The unit cost of producing electricity using Acacia nilotica was lowest among all the selected species. Technological advancements suitable government incentives are needed to promote electricity generation from forest biomass through gasification technology. This will help in spurring economic development and reducing overall ecological footprint of the state.     

Electrolytic Sn/Li2O coatings for thin-film lithium ion battery anodes

Sn/Li₂O composite coatings on stainless steel substrate, as anodes of thin-film lithium battery are carried out in SnCl₂ and LiNO₃ mixed solutions by using cathodic electrochemical synthesis and subsequently annealed at 200 °C. Through cathodic polarization tests, three major regions are verified: (I) O₂ + 4H⁺ + 4e⁻ → 2H₂O (∼0.25 to −0.5 V), (II) 2H⁺ + 2e⁻ → H₂, Sn²⁺ + 2e⁻ → Sn, and NO₃⁻ + H₂O + 2e⁻ → NO₂⁻ + 2OH⁻ (−0.5 to −1.34 V), and (III) 2H₂O + 2e⁻ → H₂ + 2OH⁻ (−1.34 to −2 V vs. Ag/AgCl). The coated specimens are characterized by X-ray diffraction (XRD), scanning electron microscopy (SEM), X-ray photoelectron spectroscopy (XPS), cyclic voltammetry (CV), and charge/discharge tests. The nano-sized Sn particles embedded in Li₂O matrix are obtained at the lower part of region II such as −1.2 V, while the micro-sized Sn with little Li₂O at the upper part, such as −0.7 V. Charge/discharge cycle tests elucidated that Sn/Li₂O composite film showed better cycle performance than Sn or SnO₂ film, due to the retarding effects of amorphous Li₂O on the further aggregation of Sn particles. On the other hand, the one tested for cut-off voltage at 0.9 V (vs. Li/Li⁺) is better than those at 1.2 and 1.5 V since the incomplete de-alloy at lower cut-off voltage may inhibit the coarsening of Sn particles, revealing capacity 587 mAh g⁻¹ after 50 cycle, and capacity retention ratio C50/C2 81.6%, higher than 63.5% and 49.1% at 1.2 and 1.5 V (vs. Li/Li⁺), respectively.     

Economic assessment of biogas-to-electricity generation system with H2S removal by activated carbon in small pig farm

This study was conducted to assess the economic feasibility of electricity generation from biogas in small pig farms with and without the H₂S removal prior to biogas utilisation. The 2% potassium iodide (KI) impregnated activated carbon selected as H₂S adsorbent was introduced to a biogas-to-electricity generation system in a small pig farm in Thailand as a case study. With the average inlet H₂S concentration of about 2400 ppm to the adsorption unit, the H₂S removal efficiency could reach 100% with the adsorption capacity of 0.062 kg of H₂S/kg of adsorbent. Under the reference scenario (i.e., 45% subsidy on digester installation and fixed electricity price at 0.06 Euro/kWh) and based on an assumption that the biogas was fully utilised for electricity generation in the system, the payback period for the system without H₂S removal was about 4 years. With H₂S removal, the payback period was within the economic life of digester but almost twice that of the case without H₂S removal. The impact of electricity price could be clearly seen for the case of treated biogas. At the electricity price fixed at 0.07 Euro/kWh, the payback period for the case of treated biogas was reduced to about 5.5 years, with a trend to decrease at higher electricity prices. For both treated and untreated biogas, the governmental subsidy was the important factor determining the economics of the biogas-to-electricity systems. Without subsidy, the payback period increased to almost 7 years and about 11 years for the case of untreated and treated biogas, respectively, at the reference electricity price. Although the H₂S removal added high operation cost to the system, it is still highly recommended not only for preventing engine corrosion but also for the environment benefit in which air pollution by H₂S/SO₂ emission and impact on human health could be potentially reduced.     

Geothermal development in Hungary—country update report 2000–2002

This paper describes the status of geothermal energy utilization—direct use—in Hungary, with emphasis on developments between 2000 and 2002. The level of utilization of geothermal energy in the world increased in this period and geothermal energy was the leading producer, with 70% of the total electricity production, of all the renewable energy sources (wind, solar, geothermal and tidal), followed by wind energy at 28%. The current cost of direct heat use from biomass is 1–5 US¢/kWh, geothermal 0.5–5 US¢/kWh and solar heating 3–20 US¢/kWh. The data relative to direct use in Hungary decreased in this period and the contribution of geothermal energy to the energy balance of Hungary, despite significant proven reserves (with reinjection) of 380 million m³/year, with a heat content of 63.5 PJ/a at ΔT=40 °C, remained very low (0.25%). Despite the fact that geothermal fluids with temperatures at the surface higher than 100 °C are available, no electricity has been generated. As of 31 December 2002, the geothermal capacity utilised in direct applications in Hungary is estimated to be 324.5 MW_t and to produce 2804 TJ/year. Geothermal heat pumps represent about 4.0 MW_t of this installed capacity. The quantity of thermal water produced for direct uses in 2002 was approximately 22 million m³, with an average utilization temperature of 31 °C. The main consumer of geothermal energy is agriculture (68% of the total geothermal heat dedicated to direct uses). The geothermal water is used only in five spas for space heating and sanitary hot water (SHW), although there are 260 spas in the country, and the thermal water produced has an average surface temperature of 68 °C. The total heat capacity installed in the spas is approximately 1250 MW_t; this is not provided by geothermal but could be, i.e., geothermal could provide more than three times the geothermal capacity utilized in direct uses by 31 December 2002 (324.5 MW_t).     

Implications of technological learning on the prospects for renewable energy technologies in Europe

The objective of this article is to examine the consequences of technological developments on the market diffusion of different renewable electricity technologies in the EU-25 until 2020, using a market simulation model (ADMIRE REBUS). It is assumed that from 2012 a harmonized trading system will be implemented, and a target of 24% renewable electricity (RES-E) in 2020 is set and met. By comparing optimistic and pessimistic endogenous technological learning scenarios, it is found that diffusion of onshore wind energy is relatively robust, regardless of technological development, but diffusion rates of offshore wind energy and biomass gasification greatly depend on their technological development. Competition between these two options and (existing) biomass combustion options largely determines the overall costs of electricity from renewables and the choice of technologies for the individual member countries. In the optimistic scenario, in 2020 the market price for RES-E is 1 €ct/kWh lower than in the pessimistic scenario (about 7 vs. 8 €ct/kWh). As a result, total RES-E production costs are 19% lower, and total governmental expenditures for RES-market stimulation are 30% lower in the optimistic scenario.     

Investment appraisal of a small, grid-connected photovoltaic plant under the Serbian feed-in tariff framework

Serbian government has recently introduced the system of feed-in tariffs for electricity generated from renewable sources. The proposed feed-in tariff for photovoltaic electricity is set to 0.23 €/kWh paid for 12 years, with the PV electricity produced after the first 12 years being sold at the grid electricity market price for the rest of the plant lifetime. Although such FIT could have been justified by the small, average retail grid electricity price of just 0.054 €/kWh for Serbian households, the investment appraisal of a real case of 2.82 kWp PV power plant in two Serbian cities of Zlatibor and Negotin, clearly illustrates that the proposed FIT framework is not sufficient to attract investments into PV in Serbia. In the second part of the paper, we have analyzed alternative, more reasonable feed-in tarrif frameworks, with the goal of selecting those able to sustain the PV adoption and diffusion in Serbia.