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Technology Status - NET Nowak Energie & Technologie AG

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Table 33<br />

Cost Reduction Opportunities for Biopower (%)<br />

5<br />

BIOPOWER<br />

R&D Economy of scale I Economy of scale II Economy of scale III<br />

(components size) (manufacturing (plant size)<br />

volume)<br />

Biopower Up to 10 Up to 5 Up to 5 Up to 5<br />

Source: <strong>NET</strong> Ltd., Switzerland. Percentages are within a decade based on expected technology learning and<br />

market growth.<br />

Table 34<br />

Cost Figures for Biopower<br />

Current investment costs ● Low investment costs: 500<br />

in USD per kW ● High investment costs: 4,000<br />

Expected investment costs ● Low investment costs: 400<br />

in USD per kW in 2010 ● High investment costs: 3,000<br />

Current generation costs ● Low cost generation: 2-3<br />

in USD cents per kWh ● High cost generation: 10-15<br />

Expected Generation costs ● Low cost generation: 2<br />

in USD cents per kWh in 2010 ● High cost generation: 8-10<br />

Source: <strong>NET</strong> Ltd., Switzerland.<br />

Table 35<br />

Key Factors for Biopower<br />

Factor Fact<br />

Variable influencing energy output ● Biomass growth (fuel)<br />

Limiting factors ● Area availability<br />

● Material availability<br />

Capacity installed in 2002 in GW ● 37 GW<br />

Potential in 2010 in GW ● 55 GW<br />

Future potential beyond term year given ● High<br />

Rule of thumb for conversion ratio* ● 1 kW --> 5,400 kWh per year<br />

(installed power to electric output) ● 1 kg of biomass --> 1.6 kWh<br />

* Assumptions: U.S. data with 60 million tons of biomass per year converted into 37 billion kWh of electricity with<br />

7 GW installed capacity.<br />

Source: <strong>NET</strong> Ltd. Switzerland<br />

121

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