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Biomass Based Small Scale Combined Heat and Power Tech

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Biomass Based Small Scale Combined Heat and Power Tech ( biomass-based-small-scale-combined-heat-and-power-tech )

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6. Concluding discussion As showed by the economic comparison in chapter 1.3 none of the studied technologies are economically viable at present Swedish conditions. Nevertheless this does not mean that they will not be introduced to the market in the future. At present there are uncertainties on whether to continue the phase-out of nuclear power in Sweden. However if the phase-out is realized on full scale and Sweden still wants to maintain its energy independence some new technologies must fill in the gap in electricity generation left by the nuclear plants. If this is done with CHP plants or some other technology is difficult to predict. Nonetheless, I believe that there will be a mixture of renewable power generation technologies and as Sweden has experiences in bio-energy along with extensive amounts of biomass I believe that small scale biomass based CHP will be among the most prominent technology for this task in the future. Compared to other European countries Sweden have very low electricity prices, in for example Germany the electricity price amount to about 60 €/MWhel, [5]. The price in Sweden will probably reach theses levels in the future much because the electricity exchange within the European Union have increased the past years and this will most likely level out the prices throughout the Union, [7]. If a rise in electricity prices is accounted for some of the considered technologies will be economically viable. Yet, this also means that the competing large scale technologies also become more profitable, therefore I would suggest a change in the electricity certificate system. First I would like to see that the maximum number of year that certificates can be handed out is increased to 20 or 25 years, which would mean that the investment could be charged-of during a more reasonable lifetime, thus decreasing the COE. This would probably encourage the CHP expansion, but also divert more resources for R&D in the area and so on probably create more cost efficient technologies for the future. If the electricity certificate system is not changed investment subsidies or tax relief for new technologies could be increased to higher values. Higher subsidies can already be seen in other European countries for example the Netherlands and Portugal, [52, 53]. A large part of the information given in this study is taken directly from manufacturers and developers of biomass based CHP technologies. Therefore the provided performance data might only be valid during favorable conditions or even exaggerated. Furthermore flaws in the technology might have been missed since company written material can not be considered as non-objective and hence puts to much emphasize on advantages. Therefore it is of great importance to continue monitor the development on the CHP market from an objective perspective. The economic calculation model used in this study (see Chapter 1.3) has some uncertainties that must be considered. The investment of the “hypothetical” hot-water boiler plant is based on Swedish data from the year 1994. Still the investment is corrected with consumer price index (CPI) but as material, construction and planning costs differs between countries these 60

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