IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v71y2014icp332-345.html
   My bibliography  Save this article

A barrier and techno-economic analysis of small-scale bCHP (biomass combined heat and power) schemes in the UK

Author

Listed:
  • Wright, Daniel G.
  • Dey, Prasanta K.
  • Brammer, John

Abstract

bCHP (Biomass combined heat and power) systems are highly efficient at smaller-scales when a significant proportion of the heat produced can be effectively utilised for hot water, space heating or industrial heating purposes. However, there are many barriers to project development and this has greatly inhibited deployment in the UK. Project viability is highly subjective to changes in policy, regulation, the finance market and the low cost fossil fuel incumbent. The paper reviews the barriers to small-scale bCHP project development in the UK along with a case study of a failed 1.5 MWel bCHP scheme. The paper offers possible explanations for the project's failure and suggests adaptations to improve the project resilience. Analysis of the project's: capital structuring; contract length and bankability; feedstock type and price uncertainty, and; plant oversizing highlight the negative impact of the existing project barriers on project development. The research paper concludes with a discussion on the effects of these barriers on the case study project and this industry more generally. A greater understanding of the techno-economic effects of some barriers for small-scale bCHP schemes is demonstrated within this paper, along with some methods for improving the attractiveness and resilience of projects of this kind.

Suggested Citation

  • Wright, Daniel G. & Dey, Prasanta K. & Brammer, John, 2014. "A barrier and techno-economic analysis of small-scale bCHP (biomass combined heat and power) schemes in the UK," Energy, Elsevier, vol. 71(C), pages 332-345.
  • Handle: RePEc:eee:energy:v:71:y:2014:i:c:p:332-345
    DOI: 10.1016/j.energy.2014.04.079
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544214004927
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.energy.2014.04.079?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Thornley, Patricia, 2006. "Increasing biomass based power generation in the UK," Energy Policy, Elsevier, vol. 34(15), pages 2087-2099, October.
    2. Allan, Grant & Gilmartin, Michelle & McGregor, Peter & Swales, Kim, 2011. "Levelised costs of Wave and Tidal energy in the UK: Cost competitiveness and the importance of "banded" Renewables Obligation Certificates," Energy Policy, Elsevier, vol. 39(1), pages 23-39, January.
    3. Carlos, Romel M. & Khang, Do Ba, 2009. "A lifecycle-based success framework for grid-connected biomass energy projects," Renewable Energy, Elsevier, vol. 34(5), pages 1195-1203.
    4. Rogers, J.C. & Simmons, E.A. & Convery, I. & Weatherall, A., 2008. "Public perceptions of opportunities for community-based renewable energy projects," Energy Policy, Elsevier, vol. 36(11), pages 4217-4226, November.
    5. Spelling, James & Favrat, Daniel & Martin, Andrew & Augsburger, Germain, 2012. "Thermoeconomic optimization of a combined-cycle solar tower power plant," Energy, Elsevier, vol. 41(1), pages 113-120.
    6. Piterou, Athena & Shackley, Simon & Upham, Paul, 2008. "Project ARBRE: Lessons for bio-energy developers and policy-makers," Energy Policy, Elsevier, vol. 36(6), pages 2044-2050, June.
    7. Fight, Andrew, 2005. "Introduction to Project Finance," Elsevier Monographs, Elsevier, edition 1, number 9780750659055.
    8. Toke, David & Fragaki, Aikaterini, 2008. "Do liberalised electricity markets help or hinder CHP and district heating? The case of the UK," Energy Policy, Elsevier, vol. 36(4), pages 1448-1456, April.
    9. Wright, Daniel G. & Dey, Prasanta K. & Brammer, John G., 2013. "A fuzzy levelised energy cost method for renewable energy technology assessment," Energy Policy, Elsevier, vol. 62(C), pages 315-323.
    10. Nixon, J.D. & Dey, P.K. & Davies, P.A., 2012. "The feasibility of hybrid solar-biomass power plants in India," Energy, Elsevier, vol. 46(1), pages 541-554.
    11. Fragaki, Aikaterini & Andersen, Anders N., 2011. "Conditions for aggregation of CHP plants in the UK electricity market and exploration of plant size," Applied Energy, Elsevier, vol. 88(11), pages 3930-3940.
    12. Yescombe, E. R. & Yescombe, E. R., 2002. "Principles of Project Finance," Elsevier Monographs, Elsevier, edition 1, number 9780127708515.
    13. Upreti, Bishnu Raj, 2004. "Conflict over biomass energy development in the United Kingdom: some observations and lessons from England and Wales," Energy Policy, Elsevier, vol. 32(6), pages 785-800, April.
    14. Fragaki, Aikaterini & Andersen, Anders N. & Toke, David, 2008. "Exploration of economical sizing of gas engine and thermal store for combined heat and power plants in the UK," Energy, Elsevier, vol. 33(11), pages 1659-1670.
    15. Wiser, Ryan H. & Pickle, Steven J., 1998. "Financing investments in renewable energy : the impacts of policy design," Renewable and Sustainable Energy Reviews, Elsevier, vol. 2(4), pages 361-386, December.
    16. Adams, P.W. & Hammond, G.P. & McManus, M.C. & Mezzullo, W.G., 2011. "Barriers to and drivers for UK bioenergy development," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(2), pages 1217-1227, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ngan, Sue Lin & How, Bing Shen & Teng, Sin Yong & Leong, Wei Dong & Loy, Adrian Chun Minh & Yatim, Puan & Promentilla, Michael Angelo B. & Lam, Hon Loong, 2020. "A hybrid approach to prioritize risk mitigation strategies for biomass polygeneration systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 121(C).
    2. Uris, María & Linares, José Ignacio & Arenas, Eva, 2015. "Size optimization of a biomass-fired cogeneration plant CHP/CCHP (Combined heat and power/Combined heat, cooling and power) based on Organic Rankine Cycle for a district network in Spain," Energy, Elsevier, vol. 88(C), pages 935-945.
    3. Yang, Bo & Wei, Yi-Ming & Liu, Lan-Cui & Hou, Yun-Bing & Zhang, Kun & Yang, Lai & Feng, Ye, 2021. "Life cycle cost assessment of biomass co-firing power plants with CO2 capture and storage considering multiple incentives," Energy Economics, Elsevier, vol. 96(C).
    4. Hao Lv & Hao Ding & Dequn Zhou & Peng Zhou, 2014. "A Site Selection Model for a Straw-Based Power Generation Plant with CO 2 Emissions," Sustainability, MDPI, vol. 6(10), pages 1-16, October.
    5. Pezzuolo, Alex & Benato, Alberto & Stoppato, Anna & Mirandola, Alberto, 2016. "The ORC-PD: A versatile tool for fluid selection and Organic Rankine Cycle unit design," Energy, Elsevier, vol. 102(C), pages 605-620.
    6. Agbor, Ezinwa & Oyedun, Adetoyese Olajire & Zhang, Xiaolei & Kumar, Amit, 2016. "Integrated techno-economic and environmental assessments of sixty scenarios for co-firing biomass with coal and natural gas," Applied Energy, Elsevier, vol. 169(C), pages 433-449.
    7. Mosannenzadeh, Farnaz & Di Nucci, Maria Rosaria & Vettorato, Daniele, 2017. "Identifying and prioritizing barriers to implementation of smart energy city projects in Europe: An empirical approach," Energy Policy, Elsevier, vol. 105(C), pages 191-201.
    8. Lin, Boqiang & He, Jiaxin, 2016. "Learning curves for harnessing biomass power: What could explain the reduction of its cost during the expansion of China?," Renewable Energy, Elsevier, vol. 99(C), pages 280-288.
    9. Alberto Benato & Alarico Macor, 2017. "Biogas Engine Waste Heat Recovery Using Organic Rankine Cycle," Energies, MDPI, vol. 10(3), pages 1-18, March.
    10. Yi, Qun & Zhao, Yingjie & Huang, Yi & Wei, Guoqiang & Hao, Yanhong & Feng, Jie & Mohamed, Usama & Pourkashanian, Mohamed & Nimmo, William & Li, Wenying, 2018. "Life cycle energy-economic-CO2 emissions evaluation of biomass/coal, with and without CO2 capture and storage, in a pulverized fuel combustion power plant in the United Kingdom," Applied Energy, Elsevier, vol. 225(C), pages 258-272.
    11. Xiaocheng Zhu & Yanru Zhang & Zhenzhong Wang & Xunzhang Pan, 2022. "Comparison of China’s Biomass Combustion Power Generation with Different Installed Capacities," Energies, MDPI, vol. 15(4), pages 1-8, February.
    12. Elias Martinez-Hernandez & Myriam A. Amezcua-Allieri & Jorge Aburto, 2021. "Assessing the Cost of Biomass and Bioenergy Production in Agroindustrial Processes," Energies, MDPI, vol. 14(14), pages 1-17, July.
    13. Kavvadias, K.C., 2016. "Energy price spread as a driving force for combined generation investments: A view on Europe," Energy, Elsevier, vol. 115(P3), pages 1632-1639.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Narwane, Vaibhav S. & Yadav, Vinay Surendra & Raut, Rakesh D. & Narkhede, Balkrishna E. & Gardas, Bhaskar B., 2021. "Sustainable development challenges of the biofuel industry in India based on integrated MCDM approach," Renewable Energy, Elsevier, vol. 164(C), pages 298-309.
    2. Arunodaya Raj Mishra & Pratibha Rani & Fausto Cavallaro & Ibrahim M. Hezam, 2023. "An IVIF-Distance Measure and Relative Closeness Coefficient-Based Model for Assessing the Sustainable Development Barriers to Biofuel Enterprises in India," Sustainability, MDPI, vol. 15(5), pages 1-22, February.
    3. Adams, P.W.R. & Lindegaard, K., 2016. "A critical appraisal of the effectiveness of UK perennial energy crops policy since 1990," Renewable and Sustainable Energy Reviews, Elsevier, vol. 55(C), pages 188-202.
    4. Wright, Daniel G. & Dey, Prasanta K. & Brammer, John G., 2013. "A fuzzy levelised energy cost method for renewable energy technology assessment," Energy Policy, Elsevier, vol. 62(C), pages 315-323.
    5. Mafakheri, Fereshteh & Nasiri, Fuzhan, 2014. "Modeling of biomass-to-energy supply chain operations: Applications, challenges and research directions," Energy Policy, Elsevier, vol. 67(C), pages 116-126.
    6. Glithero, Neryssa J. & Wilson, Paul & Ramsden, Stephen J., 2013. "Prospects for arable farm uptake of Short Rotation Coppice willow and miscanthus in England," Applied Energy, Elsevier, vol. 107(C), pages 209-218.
    7. Østergaard, Poul Alberg & Andersen, Anders N., 2021. "Variable taxes promoting district heating heat pump flexibility," Energy, Elsevier, vol. 221(C).
    8. Capuder, Tomislav & Mancarella, Pierluigi, 2014. "Techno-economic and environmental modelling and optimization of flexible distributed multi-generation options," Energy, Elsevier, vol. 71(C), pages 516-533.
    9. Eid, Cherrelle & Bollinger, L. Andrew & Koirala, Binod & Scholten, Daniel & Facchinetti, Emanuele & Lilliestam, Johan & Hakvoort, Rudi, 2016. "Market integration of local energy systems: Is local energy management compatible with European regulation for retail competition?," Energy, Elsevier, vol. 114(C), pages 913-922.
    10. Mongibello, Luigi & Bianco, Nicola & Caliano, Martina & Graditi, Giorgio, 2016. "Comparison between two different operation strategies for a heat-driven residential natural gas-fired CHP system: Heat dumping vs. load partialization," Applied Energy, Elsevier, vol. 184(C), pages 55-67.
    11. Carneiro, Patrícia & Ferreira, Paula, 2012. "The economic, environmental and strategic value of biomass," Renewable Energy, Elsevier, vol. 44(C), pages 17-22.
    12. Cho, Woojin & Lee, Kwan-Soo, 2014. "A simple sizing method for combined heat and power units," Energy, Elsevier, vol. 65(C), pages 123-133.
    13. Østergaard, Poul Alberg & Andersen, Anders N. & Sorknæs, Peter, 2022. "The business-economic energy system modelling tool energyPRO," Energy, Elsevier, vol. 257(C).
    14. Adams, P.W. & Hammond, G.P. & McManus, M.C. & Mezzullo, W.G., 2011. "Barriers to and drivers for UK bioenergy development," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(2), pages 1217-1227, February.
    15. Fang, Tingting & Lahdelma, Risto, 2016. "Optimization of combined heat and power production with heat storage based on sliding time window method," Applied Energy, Elsevier, vol. 162(C), pages 723-732.
    16. Murugan, S. & Horák, Bohumil, 2016. "A review of micro combined heat and power systems for residential applications," Renewable and Sustainable Energy Reviews, Elsevier, vol. 64(C), pages 144-162.
    17. Andersen, Anders N. & Østergaard, Poul Alberg, 2018. "A method for assessing support schemes promoting flexibility at district energy plants," Applied Energy, Elsevier, vol. 225(C), pages 448-459.
    18. Andersen, Anders N. & Østergaard, Poul Alberg, 2020. "Support schemes adapting district energy combined heat and power for the role as a flexibility provider in renewable energy systems," Energy, Elsevier, vol. 192(C).
    19. Bartnik, Ryszard & Buryn, Zbigniew & Hnydiuk-Stefan, Anna, 2021. "Thermodynamic and economic analysis of effect of heat accumulator volume on the specific cost of heat production in the gas-steam CHP plant," Energy, Elsevier, vol. 230(C).
    20. Piterou, Athena & Shackley, Simon & Upham, Paul, 2008. "Project ARBRE: Lessons for bio-energy developers and policy-makers," Energy Policy, Elsevier, vol. 36(6), pages 2044-2050, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:energy:v:71:y:2014:i:c:p:332-345. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.