Highlights of socio-economic impacts from biogas in 28 target regions

Transcription

1 IEE Project BiogasIN Highlights of socio-economic impacts from biogas in 28 target regions D.2.4., WP2 - Larisa Lovrenčec, Sinergija - December, 2010 This Project (Contract No. IEE/09/848 SI ) by::

2 CONTENT Introduction 3 1. Methodology used costs Socio-economic indicators from biogas in 28 target regions Bulgaria Czech Republic Greece Croatia Latvia Romania Slovenia Conclusions Benefits for society Benefits for farmers General conclusion 11 List of references. 13 The sole responsibility for the content of this report lies with the authors. It does not necessarily reflect the opinion of the European Union. The European Commission is not responsible for any use that may be made of the information contained therein. 2

3 Introduction D.2.4 Highlights of socio-economic impacts from biogas in 28 target regions This report concerning the highlights of socio-economic issues production and utilisation was compiled in the framework of the BiogasIN project, supported by the Intelligent Energy Europe programme. BiogasIN aims to create a sustainable biogas market in Central and Eastern Europe: Bulgaria, Croatia, Czech Republic, Greece, Latvia, Romania and Slovenia by targeting the high administrative barriers both in permitting and financing procedures for new biogas installation. This will be achieved by building among the public sector (national, regional and local governments and administrations responsible for permitting process of agricultural biogas ), financing providers as well as farmers and potential biogas investors. One of the first steps in the BiogasIN working program is to develop a background material for regional and local authorities that will facilitate building among authorities of different levels by highlighting externalities from agricultural biogas. The biogas benefits related to greenhouse gas emission savings, land use, energy security and rural development are assessed in 28 different regions of seven BiogasIN target countries (four regions per country). In this report the regional socio-economic issues were assessed and possible installed, number, number and investment costs were calculated. The results could help target countries to quantify their socio-economic effect. 1. Methodology used The methodology for these calculations is based on the tool developed by the Development Agency Sinergija. Seven project partners delivered their findings from the socio-economic field for each of 4 selected target regions. As a groundwork in this task we used the calculations made by Ekodoma Biogas potential: Assessment of regional potential renewable energy production from biogas that helped us to calculate the installed, the number, the number and the investment costs in the partners target regions. In fact, all the final results calculated can be considered only as assumable figures, which can though become feasible indeed. In order to calculate the we used two different indicators from Danmark and from Austria. The indicator from Denmark we considered as minimum, i.e. irrespective the jobs that could be created in the agricultural sector either (e.g. energy crops cultivation, manure collection from other livestock units etc.). As an alternative, we submitted another, more optimistic, factor from Austria as an optimum value that we take into account the agricultural sector s employments The calculation of the installed [MW] is based on the following general equation: Where: P = E M / T P = the power of the installed in the region [MW]; E M = production of electricity from manure biogas (cogeneration), available in the region [GWh/yr]; T = 7,446 working hours. The calculation of the working hours is based on the data from An EU Energy Security and Solidarity Action Plan: Energy Sources, Production Costs and Performance of Technologies for Power Generation, Heating and Transport {COM(2008) 781 final, page 10} and 3

4 namely, when considering biomass (including biogas ), our assumption was 85% of the full load hours (8760 h/yr), which makes 7446 operating hours per year or 7,446 [MWh/yr] The calculation of the biogas number is based on the following assumption: Where: N bp = P / 0.5 MW N bp = the assumed number in the region; P = the installed of the biogas in the region [MW]; 0.5 MW = the average number in the regions of Germany and Austria have the power of 500 kw, that is why we assume here the average power of the future biogas as 500 kw or 0.5 MW The direct employment for biogas in Denmark (one of the biogas leading countries) is estimated to 560 employees/twh/yr; of which 420 employees/twh/yr is estimated to operating and maintenance, while 140 employees/twh/yr are referred to the construction phase (2000 man-years are required to construct biogas that produce 1 TWh/yr within 14 years). This data is used from the groundwork Guideline for Estimation of Renewable Energy Potentials, Barriers and Effects: Biogas, Effect on economy, environment and employment, INFORSE Europe, December These estimations will be valid for mechanized systems with some degree of centralization, when manure is transported to the biogas plant from the nearby farms. In this case, the number is based on the following equation: Where: N e = E M x employees/gwh/yr N e = assumed number of the people in biogas ; E M = production of electricity from manure biogas (cogeneration), available in the region [GWh/yr]; employees/gwh/yr = taking into account the number of 420 employees per 1 TWh/yr at the operating biogas in Denmark, we assume the average number of employees in the region as employees per 1 GWh/yr*. * MIN: Based on the Danish minimum calculations we do not take into account the jobs that could be created including the agricultural sector (e.g. manure collection from livestock units, energy crops cultivation, harvesting, transporting etc.). MAX: As alternative, we submit another factor from Austria - 19 jobs/mw per year as an optimum value including the agricultural sector. The research made by the E-Control GmbH: Bodenhöfer H.-J., Wohlgemuth N., Bliem M., Michael A., Weyerstraß K. - Assessment of the economic impact of the support of green electricity in Austria, IHS Carinthia, 2004; updated in 2007: Employment effects of the green electricity generation in Austria). In this case, the equation will be: 4

5 N e = P x 19 employees/mw Where: N e = assumed number of the people in biogas ; P = the installed of the biogas in the region [MW]; 19 employees/mw= the optimum value of employees involved in the agricultural sector costs The calculation of the investment costs is based on the data from The EU Energy Security and Solidarity Action Plan: Energy Sources, Production Costs and Performance of Technologies for Power Generation, Heating and Transport {COM(2008) 781 final, page 15}, where the cost of one average biogas plant is stated as 3,140 per 1 kw. Therefore, the total investment cost of a biogas plant is calculated by the following equation: Where: bp = P x 3,140,000 /MW bp = the investment cost producing electricity from manure; P = the power of the installed in the region [MW]; 3,140,000 /MW = taking into account the cost of one average biogas plant (3,140 /kw) in compliance with The EU Energy Security and Solidarity Action Plan, we assume the average cost of a biogas plant as 3,140,000 per 1MW. 2. Socio-economic indicators from biogas in 28 target regions Please, find below the review of the calculated socio-economic indicators from biogas made by Development Agency Sinergija. For this purpose we composed the Excel table, divided it by 7 project countries, inside - by their respective target regions and implicated the requisite data from the previous study Highlights RES potential (Ekodoma). 5

6 2.1. Bulgaria B U L G A R I A Veliko Turnovo GWh/yr (Cogeneration) Haskovo GWh/yr (Cogeneration) Stara Zagora GWh/yr (Cogeneration) Jambol GWh/yr (Cogeneration) GWh/yr (Cogeneration) Czech Republic CZECH REPUBLIC South Bohemia GWh/yr (Cogeneration) South Moravia GWh/yr (Cogeneration) Central Bohemia GWh/yr (Cogeneration)

7 Moravia-Silesia GWh/yr (Cogeneration) GWh/yr (Cogeneration) Greece G R E E C E Larissa GWh/yr (Cogeneration) Aitoloakarnania GWh/yr (Cogeneration) Preveza GWh/yr (Cogeneration) Evia GWh/yr (Cogeneration) GWh/yr (Cogeneration) Croatia C R O A T I A Medjimurska GWh/yr (Cogeneration) Varaždin GWh/yr (Cogeneration) Vukovar-Srijem 7

8 GWh/yr (Cogeneration) Osijek-Baranja GWh/yr (Cogeneration) GWh/yr (Cogeneration) Latvia L A T V I A Valmiera GWh/yr (Cogeneration) Madona GWh/yr (Cogeneration) Gulbene GWh/yr (Cogeneration) Alūksne GWh/yr (Cogeneration) GWh/yr (Cogeneration) Romania R O M A N I A Buzau GWh/yr (Cogeneration) Vrancea 8

9 GWh/yr (Cogeneration) Giurgiu GWh/yr (Cogeneration) Teleorman GWh/yr (Cogeneration) GWh/yr (Cogeneration) Slovenia S L O V E N I A Pomurska GWh/yr (Cogeneration) Savinjska GWh/yr (Cogeneration) Gorenjska GWh/yr (Cogeneration) Spodnjeposavska GWh/yr (Cogeneration) GWh/yr (Cogeneration) Conclusions One of the strategic points of the biogas development is the production and utilization, which impacts on many environmental, economic and social areas that benefits to the involved farmers and society (local communities) in general in terms of the following issues: 9

10 3.1. Benefits for society D.2.4 Highlights of socio-economic impacts from biogas in 28 target regions Energetics. Biogas are presenting cogeneration of»green«electricity and heat. The beneficial heat in biogas CHP systems is used for heating the digesters and in partially for heating of premises (business / local households on the site). Electricity is used either locally in the farms or transmitted to public electricity grid. Renewable energy sources exploitation. Replacing fossil with renewable fuels, including biogas, means the reduction of fossil fuels use in the energy / transport sectors and the increase of sustainability in the national energy supply. Biogas can significantly contribute to the protection and improvement of local natural resources and environment. Reduced dependence on imported fossil fuels. As biogas is produced locally and within national boundaries, the use drastically reduces the dependence of local communities on imported fuels and increases the local energy supply. Reduction of GHG emissions and diminishing of global warming. The use can reduce emissions of carbon dioxide (CO 2 ), methane (CH 4 ) and nitrous oxide (NO) from the storage and thus contribute to diminishing of global warming. Waste reduction. Biogas production is a great way to meet the increasingly restrictive national and European regulations in this area, and for the use of organic waste from agriculture, industry, households and treatment facilities for energy production, which followed by recycling into fertilizer. Biogas technology can help to reduce the amount of waste and the costs of their removal. Contribution to energy and environmental targets of EU (points 2, 4 and 5). Production and use can contribute to the achievement of EU targets in 3 areas: energy production from renewable sources, reducing of GHG emissions and sustainable waste management. Reduction of soil and groundwater pollution. Wastewater from digesters has much more constant composition than the waste water from manure dumps. Proper use of waste water from digesters can reduce the risks of polluting soil and groundwater. Friendly relation to water. In comparison with other biofuels, biogas in the process of anaerobic fermentation requires a minimum amount of water that recalls to water shortage in the World. New jobs creation. Compared with the use of imported fossil fuels biogas production requires much more staff to collect and transport raw materials, for equipment manufacturing, for construction, operation and maintenance, etc. Convenient storage. Biogas is easily stored and can be used anywhere and at any time. Flexible and efficient end use. Biogas is a flexible energy source, suitable for different purposes: - for cogeneration of heat and power; - for cooking and lighting; - for heating / cooling the water or for direct combustion in boilers; - it can be imposed either into natural gas network (after purification of bio-methane), or into public district heating system; - it can supply big heat consumers with heating (sheds, crop drying houses, greenhouses, swimming pools etc.); - as a fuel for vehicles: calorific value is lower than calorific value of natural gas Benefits for farmers 10

11 Metabolized substrate is an excellent secured fertilizer. Metabolized biomass (substrate) is a good fertilizer rich in phosphorus, potassium, trace elements, less nitrogen and no nitrates. It can be spread out with conventional equipment for manure and slurry over the fields. Compared with fresh cattle manure, the metabolized substrate is more effective - it is homogeneous, has a higher nutrient content, better C / N ratio, it is almost odorless (less insects attracted) and so more secured for animals and humans (doesn t contain pathogenic biological organisms). Reduction of energy costs. The production and energy in the own farms enables to reduce electricity consumption and gas from networks. Additional income for farmers. Production of raw materials, combined with the management, makes production economically attractive to farmers and helps to increase their income (less mineral fertilizers, increasing the quality of lands, higher and better quality of crops). In addition, farmers can get a new social function as energy producers or waste managers. Closed circle of environment-friendly production. The natural circuit of nutriments in the biogas production from biomass till the use of digested substrate fertilizer is concluded (field->animal breeding->waste processing->biogas->field). Possibility of using different materials. Biogas can be obtained from almost any organic substances that contain a sufficient portion of carbon, and from all the biological materials whose composition can be changed through the activities of micro-organisms: animal manure and slurry, crops (cereals, maize, rape, energy crops, etc..), crop/agricultural residues, organic waste from dairies, food and agricultural industry, organic fraction of municipal solid waste, organic waste from households and restaurants, tainted products, a number of animal by-products unfit for consumption. It is also possible to use so-called "wet biomass" (sewage sludge, sludge from farms to dairy production, sludge from pig farms or floating sludge, resulting in the production of food). Biogas can be captured even in a landfill (landfill gas). On the basis of the data provided by the project partners, we can offer the following recommendations in view of the subsistent socio-economic aspects: Farms size and farmers education. The size of farms and the farmers overall education level are important to conclude either the farms are suitable to be single biogas or the centralized biogas (some very small together) in each respected region. Farmers' education is not sufficient at this stage to manage the biogas plant as an investor or operator, which can be both improved by the help of the building trainings activities to be organized within the project duration for farmers on permit procedures and on access to finance. Farmers' income. In almost all the cases, the farmers' income is too low to invest in own biogas. That is why, in order to improve the local biogas policy it is recommended to use the existing national support schemes or private financing in order to involve as much of local farmers onto the biogas market. New economic activity. It is also possible to increase the interest in the construction in small / large livestock farms on the manure and green waste from agriculture, if the state adopts the Regulations on purchase of electricity from qualified producers. The underlying condition here is the favorable redemption price and premiums for electricity (favorable feed-in tariffs higher price for "green energy") produced from renewable sources, which play the crucial role among the farmers in the decision-making support to set up their own biogas and become eligible producers of renewable energy. Job opportunities. The option of additional energy activities implementation offers to farmers the additional economic reference point. Besides that, the biogas operation requires the employment of more manpower, what enables to decrease the unemployment level in the regions. 11

12 Land use. The metabolized substrate as an end product is a good homogeneous fertilizer that enables to enrich the farmers lands. Moreover, the operation increases the added value and the purchasing power of rural regions in general. Common socio-economic recommendations. The basic areas, for which we propose the following measures to be developed for the biogas exploitation, are: Legislative measures; Information and education; Economic and financial measures; Technical and organizational measures; Public acceptability (awareness raising) General conclusion On the basis of the made calculations we managed to estimate / to assume such indicators as the installed, the number, the number taking into account both the Danish minimum (the Austrian optimum value ) and the investment costs in regards with the biogas development per each of 28 regions of the project partners from Bulgaria, Croatia, Czech Republic, Greece, Latvia, Romania and Slovenia. Analysing the biogas impacts for society / farmers and the results of our study, we came to the following outcomes - that from the socio-economic point of view the development projects may bring the positive benefits for each region and for the whole country in general with regard to the new jobs creation and attractiveness of investments above all, so as with regard to the number and the installed. In Bulgaria the number may increase from 33 (202) in Jambol to 41 (248) in Stara Zagora. Like this the inflow of the investments to biogas may differ relatively from 33,314,531 to 40,905,184. All together the development projects in four involved regions of Bulgaria can contribute at least to 151 (919) new jobs creations and enables to attract up to 151,813,054, as long as the total installed in four involved regions comprehends 48.3 MW with 97 biogas estimated. In Czech Republic the number may increase from 42 (255) in Moravia-Silesia to 107 (651) in South Bohemia. Like this the inflow of the investments to biogas may differ relatively from 42,170,293 to 107,534,247. All together the development projects in four involved regions of Czech Republic can contribute at least to 288 (1750) new jobs creations and enables to attract up to 289,288,208, as long as the total installed in four involved regions comprehends 92.1 MW with 184 biogas estimated. In Greece the number may increase from 7 (43) in Evia to 35 (214) in Aitoloakarnania. Like this the inflow of the investments to biogas may differ relatively from 7,168,950 to 35,423,046. All together the development projects in four involved regions of Greece can contribute at least to 87 (525) new jobs creations and enables to attract up to 86,870,803, as long as the total installed in four involved regions comprehends 27.7 MW with 55 biogas estimated. In Croatia the number may increase from 6 (38) in Medjimurska to 23 (140) in Osijek-Baranja. Like this the inflow of the investments to biogas may differ relatively from 6,325,544 to 23,193,661. All together the development projects in four involved regions of Croatia can contribute at least to 53 (314) new jobs creations and enables to attract up to 51,869,460, as long as the total installed in four involved regions comprehends 16.5 MW with 33 biogas estimated. 12

13 In Latvia the number may increase from 5 (31) in Alūksne to 11 (64) in Madona. Like this the inflow of the investments to biogas may differ relatively from 5,060,435 to 10,542,573. All together the development projects in four involved regions of Latvia can contribute at least to 32 (191) new jobs creations and enables to attract up to 31,627,720, as long as the total installed in four involved regions comprehends 10.1 MW with 20 biogas estimated. In Romania the number may increase from 52 (316) in Giurgiu to 89 (541) in Buzau. Like this the inflow of the investments to biogas may differ relatively from 52,291,163 to 89,401,021. All together the development projects in four involved regions of Romania can contribute at least to 285 (1730) new jobs creations and enables to attract up to 285,914,585, as long as the total installed in four involved regions comprehends 91.1 MW with 182 biogas estimated. In Slovenia the number may increase from 11 (69) in Spodnjeposavska to 48 (291) in Savinjska. Like this the inflow of the investments to biogas may differ relatively from 11,385,979 to 48,074,134. All together the development projects in four involved regions of Slovenia can contribute at least to 110 (666) new jobs creations and enables to attract up to 110,064,464, as long as the total installed in four involved regions comprehends 35.1 MW with 70 biogas estimated. List of references 1. An EU Energy Security and Solidarity Action Plan: Energy Sources, Production Costs and Performance of Technologies for Power Generation, Heating and Transport {COM (2008) 781 final}. 2. Guideline for Estimation of Renewable Energy Potentials, Barriers and Effects: Biogas, Effect on economy, environment and employment, INFORSE Europe, December Bodenhöfer H.-J., Wohlgemuth N., Bliem M., Michael A., Weyerstraß K. - Assessment of the economic impact of the support of green electricity in Austria, IHS Carinthia, Updated in 2007: Employment effects of the green electricity generation in Austria. 13