Oil palm biomass as a sustainable energy source: A Malaysian case study

It has been widely accepted worldwide that global warming is by far the greatest threat and challenge in the new millennium. In order to stop global warming and to promote sustainable development, renewable energy is a perfect solution to achieve both targets. Presently million hectares of land in Malaysia is occupied with oil palm plantation generating huge quantities of biomass. In this context, biomass from oil palm industries appears to be a very promising alternative as a source of raw materials including renewable energy in Malaysia. Thus, this paper aims to present current scenario of biomass in Malaysia covering issues on availability and sustainability of feedstock as well as current and possible utilization of oil palm biomass. This paper will also discuss feasibility of some biomass conversion technologies and some ongoing projects in Malaysia related to utilization of oil palm biomass as a source of renewable energy. Based on the findings presented, it is definitely clear that Malaysia has position herself in the right path to utilize biomass as a source of renewable energy and this can act as an example to other countries in the world that has huge biomass feedstock.     

A CGE analysis for quantitative evaluation of electricity market changes

Risk and uncertainty entailed by electricity industry privatization impose a heavy burden on the political determination. In this sense, ex ante analyses are important in order to investigate the economic effects of privatization or liberalization in the electricity industry. For the purpose of fulfilling these quantitative analyses, a novel approach is developed, incorporating a top-down and bottom-up model that takes into account economic effects and technological constraints simultaneously. This study also examines various counterfactual scenarios after Korean electricity industry reform through the integrated framework. Simulation results imply that authorities should prepare an improved regulatory system and policy measures such as forward contracts for industry reform, in order to promote competition in the distribution sector as well as the generation sector.     

Wood-fuel biomass from the Madeira River: A sustainable option for electricity production in the Amazon region

The universal provision of electricity remains far from achieved in the Brazilian Amazon, given the geographical obstacles, the dispersion of its inhabitants, the indistinctness of appropriate technologies, and the economic obstacles. Governmental action was taken in 2003 with the creation of the Light for All Program (PLpT), with the goal of bringing electricity to all rural consumers by 2010. In addition, the National Electric Power Agency, ANEEL (Agência Nacional de Energia Elétrica), which is responsible in Brazil for the electrical sector regulation, has issued a determination of compulsory access to electricity by 2015. This study describes research conducted on the Madeira River, in the Brazilian Amazon, where the electric needs of the communities and small towns along the river can be satisfied through the gasification system, using as a renewable feedstock the wood-fuel biomass deposited on the riverbed, derived from natural processes, which the Ministry of Transport is already legally obligated to remove in order to provide safe navigation along the river. The study concludes by comparing the competitiveness of this system to diesel thermoelectric plants, along with its advantages in reducing the emission of greenhouse gases. Our results should help future studies in others areas with similar phenomena.     

Competition between biomass and food production in the presence of energy policies: a partial equilibrium analysis

Bioenergy has several advantages over fossil fuels. For example, it delivers energy at low net CO₂ emission levels and contributes to sustaining future energy supplies. The concern, however, is that an increase in biomass plantations will reduce the land available for agricultural production. The aim of this study is to investigate the effect of taxing conventional electricity production or carbon use in combination with subsidizing biomass or bioelectricity production on the production of biomass and agricultural commodities and on the share of bioelectricity in total electricity production. We develop a partial equilibrium model to illustrate some of the potential impacts of these policies on greenhouse gas emissions, land reallocation and food and electricity prices. As a case study, we use data for Poland, which has a large potential for biomass production. Results show that combining a conventional electricity tax of 10% with a 25% subsidy on bioelectricity production increases the share of bioelectricity to 7.5%. Under this policy regime, biomass as well as agricultural production increase. A carbon tax that gives equal net tax yields, has better environmental results, however, at higher welfare costs and resulting in 1% to 4% reduction of agricultural production.     

Successful renewable energy development in a competitive electricity market: A Texas case study

The development of renewable energy in markets with competition at wholesale and retail levels poses challenges not present in areas served by vertically-integrated utilities. The intermittent nature of some renewable energy resources impact reliability, operations, and market prices, in turn affecting all market participants. Meeting renewable energy goals may require coordination among many market players.     

Life cycle impacts of waste wood biomass heating systems: A case study of three UK based systems

With increasing renewable energy targets and the use of biomass for energy production, questions arise about the sustainability of differing types of bioenergy. Much has been made about the renewable transport fuel obligations and the impact the production of biofuel can have on the environment, but there has been less consideration of more small scale biomass heating systems. This work examines the life cycle impacts of the production and use of three such systems using waste wood in the South West of England. Burning of wood in the UK was reduced after the introduction of legislation to reduce smog in the 1950s, and so the impact of the emissions from the boilers has been examined. Whilst the boilers studied complied with UK emissions legislation, the emissions were the most significant impact found. However, there were differences in the emission levels depending on the loading of the boiler. In all cases the energy payback of the systems was under one year, ranging from approximately four to ten months.     

Exergetic assessment of EAHEs for building heating in Turkey: A greenhouse case study

The present study undertakes an exergy analysis of earth to air heat exchanger (EAHE) and applies to a local one in Turkey. Namely, the exergy performance of an EAHE has been evaluated in a demonstration in Solar Energy Institute of Ege University, Izmir, Turkey. Exergetic efficiencies of the system components are determined as an attempt to assess their individual performances. The daily maximum heating coefficient of performance (COP) value for the system is obtained to be 6.18. The total average COP in the experimental period is found to be 4.74.     

Competitiveness assessment of the biomass power generation industry in China: A five forces model study

China is facing a number of energy related challenges including a shortage of electricity supply, depletion of fossil fuels and environmental pollution. These challenges make it important to develop renewable energy resources. As per other renewable energy industries, the biomass power industry is facing a series of opportunities and challenges. Utilizing Michael Porter's Five Forces Model theory for analyzing the competitive environment and the competitive situation of an industry, this paper establishes a Five Forces Model for assessing the competitiveness of China's biomass power industry. Inputs for this model include semi-structured interviews with biomass power generation enterprises and a critical analysis of the national policy framework along with relevant literature and official statistics. Five major stakeholders of China's biomass power industry, namely competitors, suppliers, buyers, potential competitors, and substitutes are assessed to determine their influence on the biomass power generation industry. This assessment highlighted the current status, existing issues and future prospects of the biomass power industry. Similarly, it provides assistance to develop procurement strategies for the sustainable development of the industry.     

Biomass and biogas energy in Thailand: Potential, opportunity and barriers

Biomass has been traditional energy source in rural Thailand for decades. Country modernization, instead of reducing the biomass energy consumption, has continuously increased its utilization for both households and production of modern energy. While the GDP/capita was triple during 1980–1996, the biomass energy consumption increased by 68%, and expected to be higher as signaled by the increasing number of new biomass power plants. The legal and financial support frameworks to increase renewable energy utilization was launched in 1992 aiming for the country to depend less on imported energy, which at present accounted for 7% of GDP. In this paper, biomass and biogas energy situation in Thailand is presented. Resource potential, the promotion program and its success and failure were analyzed to suggest new policy option recommendation. The amount of agricultural residues is about 61 million ton a year, of which 41 million ton, which is equivalent to about 426 PJ of energy, was unused. The most promising residues are rice husk, bagasse, oil palm residue and rubber wood residue, merely due to their availability at the mills, which heat–power cogeneration is feasible. Biogas resources are from industrial wastewater and live stocks manure, which have potential of 7800 and 13,000 TJ/y, respectively. Instead of having the legal and financial support frameworks, the success of biomass energy program in Thailand is doubtful. Discussion on mechanisms and measures based on the past policy, which has been implemented for over a decade, is presented. From lessons learned we propose new policy approach to, in our opinion, overcome the biomass energy utilization barrier in Thailand.     

A study of the role played by renewable energies in China's sustainable energy supply

This paper first provides an overview of the context of renewable energy development in China, including the country's recent renewable energy legislation. Further, it summarizes the current status of renewable energy development and the role it plays in the national energy supply. Next it introduces the national indicative targets for renewable energies in 2010 and 2020, and conducts a long term scenario of the role of renewable energies in China's energy system transition till 2050. It discusses the main risks involved in China's renewable energy development, and proposes some policy measures for risk management.     

Management of natural gas resources and search for alternative renewable energy resources: A case study of Pakistan

Energy usage in Pakistan has increased rapidly in past few years due to increase in economic growth. Inadequate and inconsistent supply of energy has created pressure on the industrial and commercial sectors of Pakistan and has also affected environment. Demand has already exceeded supply and load shedding has become common phenomenon. Due to excessive consumption of energy resources it would become difficult to meet future energy demands. This necessitates proper management of existing and exploration of new energy resources. Energy resource management is highly dependent on the supply and demand pattern. This paper highlights the future demands, production and supply of energy produced from natural gas based on economic and environmental constraints in Pakistan with special emphasis on management of natural gas. An attempt has been made by proposing a suitable course of action to meet the rising gas demand. A mechanism has been proposed to evaluate Pakistan's future gas demand through quantitative analysis of base, worst and best/chosen option. CO₂ emission for all cases has also been evaluated. The potential, constraints and possible solutions to develop alternative renewable energy resources in the country have also been discussed. This work will be fruitful for the decision makers responsible for energy planning of the country. This work is not only helpful for Pakistan but is equally important to other developing countries to manage their energy resources.     

Algerian renewable energy assessment: The challenge of sustainability

Algeria plays a very important role in world energy markets, both as a significant hydrocarbon producer and as an exporter, as well as a key participant in the renewable energy market. Due to its geographical location, Algeria holds one of the highest solar potentials in the world. This paper presents a review of the present renewable energy situation and assesses present and future potential of renewable energy sources (RESs) in Algeria. This paper also discusses the trends and expectation in solar systems applications and the aspects of future implementation of renewable energies in the Middle East and North Africa (MENA) region status. The problem related to the use of RES and polices to enhance the use of these sources are also analysed in this paper. In addition the available capacity building, the technical know-how for each RES technology and localizing manufacturing of renewable energy equipments are defined. The co-importance of both policy and technology investments for the future Algerian markets of RES and competitiveness of the solar/wind approach is emphasized. Some examples of policy significantly impacting Algerian markets are reviewed, and the intention of the new Algerian RES initiative is discussed.     

Energy taxation in a small, open economy: Social efficiency gains versus industrial concerns

Welfare analyses of energy taxes typically show that systems with uniform rates perform better than differentiated systems, especially if revenue can be recycled by cutting taxes that are more distortionary. However, in practical policy, efficiency gains must be traded off against industrial concerns. Presumably, energy-dependent industries of small, open economies will suffer relatively more if taxed. This computable general equilibrium (CGE) study examines the social costs of compensating the energy-intensive export industries in Norway for their profit losses from imposing the same electricity tax on all industries. The costs are surprisingly modest. This is explained by the role of the Nordic electricity market, which is still limited enough to respond to national energy tax reforms. Thus, an electricity price reduction partly neutralizes the direct impact of the tax on profits. In addition, we examine the effects of different compensation schemes and find significantly lower compensation costs when the scheme is designed to release productivity gains.     

Increasing biomass based power generation in the UK

As the UK strives to increase its level of renewables based power generation, the contribution that biomass makes and could make in the future is examined. The role of power generation from biomass in reducing greenhouse gas emissions is evaluated, alongside an evaluation of the wider environmental, social and economic impacts of increasing the level of bioenergy in the UK. Progress with implementation of biomass projects is compared to UK national targets and the policy support framework is critically examined, with recommendations regarding future support mechanisms.     

Projecting demand and supply of forest biomass for heating in Norway

This paper assesses the increase in demand and supply for forest biomass for heating in Norway in 2020. By then there is a political aim to double the national production of bioenergy from the level in 2008. The competitiveness of woody biomass in central and district heating is analyzed in a model selecting the least-cost heating technology and scale in municipalities given a set of constraints and under different fuels price scenarios. The supply of forest biomass from roundwood is estimated based on data of forest inventories combined with elasticities regarding price and standing volumes. The supply of biomass from harvesting residues is estimated in an engineering approach based on data from the national forest inventories and roundwood harvest. The results show how the production of bioenergy is affected by changes in energy prices and support schemes for bioenergy. One conclusion from the analyses is that the government target of 14 TWh more bioenergy by 2020 is not likely to be met by current technologies and policy incentives. The contribution of the analysis is the detailed presentation of the heat market potentials and technology choices combined with supply functions for both roundwood and harvesting residues.     

Importance of biomass energy as alternative to other sources in Turkey

Energy plays a vital role in socio–economic development and raising standards of human beings. Turkey is a rapidly growing country; both its population and economy are expanding each year so its energy demand increases correspondingly and this increasing demand has to be met for keeping sustainable development in the economy and raising living conditions of mankind. Although Turkey has many energy sources, it is a big energy importer. Turkey has a lot of potential to supply its own energy, which could be put to use in order to avoid this energy dependence. Additionally, Turkey is a country that has an abundance of renewable energy sources and can essentially provide all energy requirements from indigenous energy sources. Biomass is one of the most promising energy sources considered to be alternative to conventional ones.     

Economic modelling of price support mechanisms for renewable energy: Case study on Ireland

The Irish Government is considering its future targets, policy and programmes for renewable energy for the period beyond 2005. This follows a review in 2003 of policy options that identified a number of different measures to stimulate increased deployment of renewable energy generation capacity. This paper expands this review with an economic analysis of renewable energy price support mechanisms in the Irish electricity generation sector. The focus is on three primary price support mechanisms quota obligations, feed in tariffs and competitive tender schemes. The Green-X computer model is utilised to characterise the RES-E potential and costs in Ireland up until, and including, 2020. The results from this dynamic software tool are used to compare the different support mechanisms in terms of total costs to society and the average premium costs relative to the market price for electricity. The results indicate that in achieving a 20% RES-E proportion of gross electricity consumption by 2020, a tender scheme provides the least costs to society over the period 2006–2020 but only in case there is limited or no strategic bidding. Considering, however, strategic bidding, a feed-in tariff can be the more efficient solution. Between the other two support mechanisms, the total costs to society are highest for feed-in-tariffs (FIT) until 2013, at which point the costs for the quota system begin to rise rapidly and overtake FIT in 2014–2020. The paper also provides a sensitivity analysis of the support mechanism calculations by varying default parameters such as the interim (2010) target, the assumed investment risk levels and the amount of biomass co-firing. This analysis shows that a 2010 target of 15% rather than 13.2% generates lower costs for society over the whole period 2006–2020, but higher costs for the RES-E strategy over the period 2006–2010.     

An economy-wide evaluation of new power generation in South Africa: The case of Medupi and Kusile

This paper investigates the role that the building of two new power stations, Medupi and Kusile, will play in facilitating future economic activity in South Africa. We use a dynamic computable general equilibrium (CGE) model to estimate the economy-wide effects of these new power stations. Our simulation results also provide insight into how much the local economy has lost due to inadequate electricity supply in the period leading up to the construction of Medupi and Kusile. We find that the decision to build additional power generation capacity was necessary and justified, and that the failure to sooner recognise the need for expansion of the country's electricity generation capacity and subsequent delays in commissioning Medupi and Kusile, likely cost the economy over R110bn in lost production. Additional analysis, in which a further two-year delay in the construction of Medupi and Kusile is simulated, shows that such an event will cause the economy to perform below baseline projections up to 2022.     

The synthesis of bottom-up and top-down approaches to climate policy modeling: Electric power technologies and the cost of limiting US CO2 emissions

In the US, the bulk of CO₂ abatement induced by carbon taxes comes from electric power. This paper incorporates technology detail into the electricity sector of a computable general equilibrium model of the US economy to characterize electric power's technological margins of adjustment to carbon taxes and to elucidate their general equilibrium effects. Compared to the top-down production function representation of the electricity sector, the technology-rich hybrid specification produces less abatement at a higher welfare cost, suggesting that bottom-up models do not necessarily generate lower costs of abatement than top-down models. This result is shown to be sensitive to the elasticity with which technologies’ generating capacities adjust to relative prices.