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Improving the profitability of anaerobic digestion: is the public support framework compatible with participation in the day-ahead electricity market?

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  • Willeghems, Gwen
  • Buysse, Jeroen

Abstract

There is an increasing need for an alternative energy source within the electricity market to counterbalance the intermittent supply from renewable energy sources as their share in the market continues to grow. Anaerobic digestion could play a role in fulfilling this need through participation in the day-ahead electricity market. The potential for anaerobic digestion operators in Flanders, Belgium, and the impact of the current Flemish support policy framework on this potential are investigated by developing a non-linear optimization model that maximizes profits for the complete anaerobic digestion system, taking into account the current policy framework and a proposed alternative one. Our analysis indicates that there is a potential profit to be made for anaerobic digestion operators in the day-ahead market. However, the current framework of public support is not conducive to their participation. By allowing the same amount of support to be spread over a longer period of time, the use of flexible electricity production in the anaerobic digestion sector could be stimulated, and the profitability of this sector increased.

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  • Willeghems, Gwen & Buysse, Jeroen, 2019. "Improving the profitability of anaerobic digestion: is the public support framework compatible with participation in the day-ahead electricity market?," Renewable Energy, Elsevier, vol. 139(C), pages 560-572.
    • Handle: RePEc:eee:renene:v:139:y:2019:i:c:p:560-572
    DOI: 10.1016/j.renene.2019.02.105
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