Bioenergy Implementation Plan - South-East Regional Authority

9. VIABILITY ANALYSES OF BIOENERGY
TECHNOLOGIES
The purpose of the viability analyses and assessment is to assess which bioenergy
resources can provide viable energy to the South-East Region under the current
market conditions (fuel prices, source, energy taxes and subsidy schemes from the
Government). It should be noted that any change in the current market conditions will
affect the viability analysis and, therefore, these results should be treated as indicative
rather than conclusive. The results from the viability analyses were used in devising the
regional targets for the development of the bioenergy market for the Region.
9.1. Methodology
The methodology which was applied in this chapter can briefly be summarised as follows:
1. Selection and definition of three case studies, representing each sector – heat, electricity and transport - Section 9.2.
Each case study includes a bioenergy system and a relevant reference system (conventional fossil energy systems)
for comparative purposes.
2. Selection of the appropriate investor types for the case studies (energy utilities, industries, the agricultural sector or
private consumers), and determination of their anticipated requirements for financial viability (willingness to invest)
- Section 9.3.
3. Determination of the necessary assumptions in order to conduct the viability calculations - Appendix 2. These
assumptions are grouped as follows:
• Non technology-specific assumptions. These include: general assumptions (VAT and tax levels) and energy
consumption in the case studies
• Fuel conditions, which include current fuel prices for fossil and wood fuels, tariffs for the purchase of
electricity and transport fuel costs
• Technology specific assumptions. These include:
• Investments and maintenance costs
• Current incentive schemes.
4. Analysis of financial viability, including relevant sensitivity analyses, and the presentation of the results and
conclusions regarding the financial viability of the selected technologies in the South-East Region under the current
framework conditions - Section 9.4.
5. Qualitative assessment of the viability of using bioenergy sources for energy production other than those analysed
in the case studies - Section 9.5.
The viability analyses were prepared using a tailor-made spreadsheet model for this project.
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south-east regional authority
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