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Publikācija: Analysis of Competitiveness and Support Instruments for Heat and Electricity Production from Wood Biomass in Latvia

Publication Type Scientific article indexed in SCOPUS or WOS database
Funding for basic activity Contract research work
Defending: ,
Publication language English (en)
Title in original language Analysis of Competitiveness and Support Instruments for Heat and Electricity Production from Wood Biomass in Latvia
Field of research 2. Engineering and technology
Sub-field of research 2.7 Environmental engineering and energetics
Authors Antra Kundziņa
Gaidis Klāvs
Ivars Kudreņickis
Keywords energy production price, district heating system, wood biomass fuel, combined heat/ power production, investment subsidies, feed-in tariff
Abstract Utilisation of renewable energy sources is one of the key factors in a search for efficient ways of reducing the emissions of greenhouse gases and improving the energy supply security. So far, the district heating supply in Latvia has been based on natural gas, with the wood fuel playing a minor role; the same is true for decentralised combined heat-power (CHP) production. The paper describes a method for evaluation of the economic feasibility of heat and electricity production from wood biomass under the competition between different fuel types and taking into account the electricity market. For the simulation, a cost estimation model is applied. The results demonstrate that wood biomass can successfully be utilised for competitive heat production by boiler houses, while for electricity production by CHP utilities it cannot compete on the market (even despite the low prices on wood biomass fuel) unless particular financial support instruments are applied. The authors evaluate the necessary support level and the impact of two main support instruments - the investment subsidies and the feed-in tariff - on the economic viability of wood-fuelled CHP plants, and show that the feed-in tariff could be considered as an instrument strongly affecting the competitiveness of such type CHP. Regarding the feed-in tariff determination, a compromise should be found between the economy-dictated requirement to develop CHP projects concerning capacities above 5 MWel - on the one hand, and the relatively small heat loads in many Latvian towns - on the other.
DOI: 10.2478/v10047-012-0007-3
Hyperlink: https://content.sciendo.com/view/journals/lpts/49/2/article-p3.xml 
Reference Kundziņa, A., Klāvs, G., Kudreņickis, I. Analysis of Competitiveness and Support Instruments for Heat and Electricity Production from Wood Biomass in Latvia. Latvian Journal of Physics and Technical Sciences, 2012, Vol.49, No.2, pp.3-13. ISSN 0868-8257. Available from: doi:10.2478/v10047-012-0007-3
Additional information Citation count:
ID 28397