Economic Feasibility of Agricultural Biogas Production by Farms in Ukraine
Renewable energy generation in Ukraine is developing slower than state strategies and expectations, with the installations for energy generation based on biogas currently being among the lowest in terms of installed capacity. Most of those involved in energy generation from agricultural biogas are l...
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| Format: | Article |
| Language: | English |
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MDPI AG
2021-12-01
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| Series: | Energies |
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| Online Access: | https://www.mdpi.com/1996-1073/15/1/87 |
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| author | Galyna Trypolska Sergii Kyryziuk Vitaliy Krupin Adam Wąs Roman Podolets |
| author_facet | Galyna Trypolska Sergii Kyryziuk Vitaliy Krupin Adam Wąs Roman Podolets |
| author_sort | Galyna Trypolska |
| collection | DOAJ |
| description | Renewable energy generation in Ukraine is developing slower than state strategies and expectations, with the installations for energy generation based on biogas currently being among the lowest in terms of installed capacity. Most of those involved in energy generation from agricultural biogas are large enterprises, while the small and medium-sized farms are far less involved. Thus the article aims to assess the economic feasibility of biogas production from agricultural waste by specific farm types and sizes, with a special focus on small and medium-sized farms. The research results present findings in two dimensions, first defining the economic feasibility of biogas installations in Ukraine based on investment costs and the rate of return at both the current and potential feed-in tariff, and second, analyzing the influence of state regulation and support on the economic feasibility of agricultural biogas production in Ukraine. The results emphasize that the construction of small generation capacities does not provide sufficient funds under the current feed-in tariff to meet the simple return period expected by the domestic financing institutions. Except for the general support programs for agricultural activities, there are no support funds specifically for biogas producers, while there is tight competition with wind and solar energy due to diversified feed-in tariffs. |
| first_indexed | 2024-03-10T03:43:35Z |
| format | Article |
| id | doaj.art-927ab3b4a26a415e8a862780d58a5bba |
| institution | Directory Open Access Journal |
| issn | 1996-1073 |
| language | English |
| last_indexed | 2024-03-10T03:43:35Z |
| publishDate | 2021-12-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Energies |
| spelling | doaj.art-927ab3b4a26a415e8a862780d58a5bba2023-11-23T11:25:16ZengMDPI AGEnergies1996-10732021-12-011518710.3390/en15010087Economic Feasibility of Agricultural Biogas Production by Farms in UkraineGalyna Trypolska0Sergii Kyryziuk1Vitaliy Krupin2Adam Wąs3Roman Podolets4State Institution Institute for Economics and Forecasting of the National Academy of Sciences of Ukraine, Panasa Myrnoho 26, 01011 Kyiv, UkraineState Institution “Center for Evaluation of Activity of Research Institutions and Scientific Support of Regional Development of Ukrainе NАS of Ukraine”, Volodymyrska 54, 01601 Kyiv, UkraineInstitute of Rural and Agricultural Development, Polish Academy of Sciences, Nowy Świat 72, 00-330 Warsaw, PolandInstitute of Economics and Finances, Warsaw University of Life Sciences (SGGW), Nowoursynowska 166, 02-787 Warsaw, PolandState Institution Institute for Economics and Forecasting of the National Academy of Sciences of Ukraine, Panasa Myrnoho 26, 01011 Kyiv, UkraineRenewable energy generation in Ukraine is developing slower than state strategies and expectations, with the installations for energy generation based on biogas currently being among the lowest in terms of installed capacity. Most of those involved in energy generation from agricultural biogas are large enterprises, while the small and medium-sized farms are far less involved. Thus the article aims to assess the economic feasibility of biogas production from agricultural waste by specific farm types and sizes, with a special focus on small and medium-sized farms. The research results present findings in two dimensions, first defining the economic feasibility of biogas installations in Ukraine based on investment costs and the rate of return at both the current and potential feed-in tariff, and second, analyzing the influence of state regulation and support on the economic feasibility of agricultural biogas production in Ukraine. The results emphasize that the construction of small generation capacities does not provide sufficient funds under the current feed-in tariff to meet the simple return period expected by the domestic financing institutions. Except for the general support programs for agricultural activities, there are no support funds specifically for biogas producers, while there is tight competition with wind and solar energy due to diversified feed-in tariffs.https://www.mdpi.com/1996-1073/15/1/87agricultural biogasfarmeconomic feasibilityinvestmentLCOEstate support |
| spellingShingle | Galyna Trypolska Sergii Kyryziuk Vitaliy Krupin Adam Wąs Roman Podolets Economic Feasibility of Agricultural Biogas Production by Farms in Ukraine Energies agricultural biogas farm economic feasibility investment LCOE state support |
| title | Economic Feasibility of Agricultural Biogas Production by Farms in Ukraine |
| title_full | Economic Feasibility of Agricultural Biogas Production by Farms in Ukraine |
| title_fullStr | Economic Feasibility of Agricultural Biogas Production by Farms in Ukraine |
| title_full_unstemmed | Economic Feasibility of Agricultural Biogas Production by Farms in Ukraine |
| title_short | Economic Feasibility of Agricultural Biogas Production by Farms in Ukraine |
| title_sort | economic feasibility of agricultural biogas production by farms in ukraine |
| topic | agricultural biogas farm economic feasibility investment LCOE state support |
| url | https://www.mdpi.com/1996-1073/15/1/87 |
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