HOME PAGE | |
№ 2021/2
1Institute for Economics and Forecasting, NAS of Ukraine
PROSPECTS OF STATE SUPPORT FOR THE DEVELOPMENT OF THE BIOMETHANE INDUSTRY IN UKRAINE UNTIL 2040
Ekon. prognozuvannâ 2021; 2:128-142 | https://doi.org/10.15407/eip2021.02.128 |
ABSTRACT ▼
The paper considers the prospects for the state support for the development of biomethane industry in Ukraine from 2025 to 2040. The main financial incentives for the use of biomass-derived energy are a special tariff for heat from sources other than natural gas, and a feed-in tariff (the auction price in the future). In the EU, biomethane production is gaining ground due to available financial incentives (premiums to the cost of natural gas, and premiums to feed-in tariff). The main obstacle to the large-scale spread of biogas (and, accordingly, biomethane) is the high cost of equipment. The amounts of state support for biogas production with its purification to biomethane and supply of the latter to the gas transmission and gas distribution networks under the conditions of biomethane production in the amounts provided by the draft Roadmap for Bioenergy Development in Ukraine until 2050 were assessed. While maintaining the price of natural gas at the level of prices of 2021 (EUR 0.24/m3), the need to subsidize biomethane production from 2025 to 2040 can reach EUR 0.263-3.5 billion, on average EUR 16.5-217 million per year. Infrastructure expenditures were not taken into account in the assessment. The possibility of electricity output from biomethane was not considered, as biogas refining to the quality of biomethane requires additional funds. The statutory auction price may be sufficient only for certain types of feedstock and for large biogas plants.
The use of biomethane may be appropriate in the transport sector, as biomethane is an "advanced biofuel", and Ukraine already has a relatively extensive network of methane filling stations. Biomethane production in Ukraine will require state support, particularly in the form of direct subsidies to biomethane producers (in the form of premium to the price of natural gas), and in the form of a premium to the auction price. The use of biomethane will partially reduce dependence on imported fossil fuels, being also an important element in the decarbonization of sectors using natural gas, replacing up to 0.76 billion m3 of the latter in 2040, which is in line with the global leading decarbonization trends.
Keywords:biomethane, biogas, bioenergy, Ukraine
JEL: Q42, Q48, Q57
Article in Ukrainian (pp. 128 - 142) | Download | Downloads :308 |
REFERENCES ▼
2. REN21 (2021). Renewables in Cities 2021 Global Status Report. Paris: REN21 Secretariat.
3. Ardolino, F., Cardamone, G.F., Parrillo, F., Arena, U. (2021, April). Biogas-to-biomethane upgrading: A comparative review and assessment in a life cycle perspective. Renewable and Sustainable Energy Reviews, 139, 110588. doi.org/10.1016/j.rser.2020.110588
4. Shlapak, M., Matveev, Yu., Shmarin, S. et al. (2020). Technology Needs Assessment Report Mitigation Technology Barrier Analysis and Enabling Framework. Retrieved from tech-action.unepdtu.org/wp-content/uploads/sites/2/2020/04/baef-mitigation-report-ukraine.pdf
5. Kucheruk. P.P. (2016). Improving the efficiency of biogas production by co-digestion of manure with maize silage. Retrieved from ittf.kiev.ua/wp-content/uploads/2016/04/ar_kucheruk_sajt.pdf [in Ukrainian].
6. Sakun, L., Riznichenko, L., Vіelkin, B. (2020). Prospects of Biogas Market Development in Ukraine and Abroad. Ekonomika i orhanizatsiia upravlinnia – Economics and organization of management, 1 (37). Retrieved from jeou.donnu.edu.ua/article/view/7932 [in Ukrainian].
7. Kaletnik, G., Zdyrko, N., Fabianska, V. (2018). Biogas in households is a guarantee of energy independence of rural areas of Ukraine. Ekonomika. Finansy. Menedzhment: aktual'ni pytannia nauky i praktyky – Economy. Finances. Management: current issues of science and practice, 8, 7-22. Retrieved from nbuv.gov.ua/UJRN/efmapnp_2018_8_3 [in Ukrainian].
8. Tkachenko, S., Stepanov, D., Stepanova, N. (2020). Analysis of Social and Energy and Sustainable Efficiency of Biogas Technology. Visnyk Vinnyts'koho politekhnichnoho instytutu – Bulletin of Vinnytsya Polytechnic Institute, 2, 34-41. Retrieved from visnyk.vntu.edu.ua/index.php/visnyk/article/view/2478/2371; doi.org/10.31649/1997-9266-2020-149-2-34-41 [in Ukrainian].
9. Was, A., Sulewski, P., Krupin, V., Popadynets, N, Malak-Rawlikowska, A., Szyma´nska, M., Skorokhod, I., Wysoki´nski, M. (2020). The Potential of Agricultural Biogas Production in Ukraine—Impact on GHG Emissions and Energy Production. Energies, 13, 5755. doi.org/10.3390/en13215755
10. Draft Law of Ukraine "On amendments to some legislative acts of Ukraine concerning development of trade with solid biofuels". Retrieved from saee.gov.ua/sites/default/files/1%20ЗП%20біржа_QR.pdf [in Ukrainian].
11. The Ministry of Energy starts a public discussion of the draft law on the development of the biomethane market in Ukraine (2021, April 05). Retrieved from mpe.kmu.gov.ua/minugol/control/publish/article?art_id=245525879 [in Ukrainian].
12. Notice of promulgation of the draft Law of Ukraine "On Amendments to Certain Laws of Ukraine on the Development of Production and Consumption of Biomethane". Retrieved from mpe.kmu.gov.ua/minugol/control/uk/publish/article?art_id=245524638&cat_ id=167475 [in Ukrainian].
13. Dombrovsky, O. (2020, June 23). Prospects for the use of biomethane in the agro-industrial complex of Ukraine. Online seminar "Prospects for biomethane production and consumption in Ukraine". Retrieved from www.youtube.com/ watch?v=W5R2erQXE3o&t=4092s [in Ukrainian].
14. IEA (2020). Outlook for biogas and biomethane. Retrieved from www.euneighbours.eu/sites/default/files/publications/2020-03/Outlook_for_biogas_and_biomethane.pdf
15. We can be ready to inject hydrogen into the network after 2025 - the strategic director of GDC (2021, June 16). Retrieved from reform.energy/analitics/my-mozhem-byt-gotovy-k-zakachke-vodoroda-v-seti-posle-2025-goda-strategicheskiy-direktor-rgk-17812?utm_source=dlvr.it&utm_medium=twitter [in Russian].
16. The installed capacity of the power system of Ukraine on 02/2021. Retrieved from ua.energy/vstanovlena-potuzhnist-energosystemy-ukrayiny/ [in Ukrainian].
17. Biogas Industry Figures 2018-2019. Retrieved from www.biogas.org/edcom/ webfvb.nsf/id/EN-German-biogas-market-data/$file/ 19-07-12_Biogasindustryfigures-2018-2019_english.002.pdf
18. Biogas market data in Germany 2018/2019. Fachverband Biogas. Retrieved from www.biogas.org/edcom/webfvb.nsf/id/EN-German-biogas-market-data/ $fi le/19-07-12_Biogasindustryfigures-2018-2019_english.002.pdf
19. Dykalenko, M. (2018, July 30). Biogas technologies can significantly improve the economy of agricultural enterprises. Retrieved from landlord.ua/news/biogazovi-tehnologiyi-zdatni-znachno-polipshiti-ekonomiku-agrarnih-pidpriyemstv/ [in Ukrainian].
20. Mostova, M. (2020, Aprile 09). Biogas in Ukraine: great prospects and reality. Retrieved from energytransition.in.ua/sfera-biohazu-v-ukraini-velyki-perspektyvy-ta-real-nist/ [in Ukrainian].
21. Geletukha, G. (2020, June 23). Online seminar "Prospects for biomethane production and consumption in Ukraine". Retrieved from www.youtube.com/ watch?v=W5R2erQX E3o&t=4092s [in Ukrainian].
22. European Biogas Association (2018). Statistical report of the European biogas association 2018. Retrieved from www.europeanbiogas.eu/wp-content/uploads/2019/05/ EBA_Statistical-Report-2018_AbrigedPublic_web.pdf
23. Geletukha, G. (2020). Roadmap for Bioenergy Development in Ukraine until 2050. Retrieved from rea.org.ua/wp-content/uploads/2020/11/ukrainian_ roadmap_geletukha_181120.pdf; doi.org/10.31472/ttpe.2.2020.6 [in Ukrainian].
24. [Natural] Gas in Ukraine: import, production, price for the population (2020, April 28). Slovo i Dilo – Word and Deed. Retrieved from: www.slovoidilo.ua/2020/04/28/ infografika/ekonomika/haz-ukrayini-import-vydobutok-czina-naselennya [in Ukrainian].
25. Pysmenna, U. Ye., Trypolska, G.S. (2020). Maintaining the Sustainable Energy Systems: Turning from Cost to Value. Enеrgеtika. Proс. СIS Higher Educ. Inst. аnd Power Eng. Assoc., 63: 1, 14-29. doi.org/10.21122/1029-7448-2020-63-1-14-29
26. Kucheruk, P. Economic prerequisites for the production and use of biomethane in electricity/heat production in Ukraine. Retrieved from: saf.org.ua/en/news/636/
27. SC "Guaranteed Buyer". Retrieved from: www.gpee.com.ua
28. Altmann, M., Schmidt, P., Raksha, T., Albrecht, J., Bauen, A., Howes, J., German, L., Roberts, L., Bulic, P., Vulić, P., Vulić, I., Tomić, M. (2020). Modalities to foster use of renewable energy sources in the transport sector by the Energy Community Contracting Parties. Ludwig-Bölkow-Systemtechnik, E4tech, South East Europe Consultants.
29. Shafarenko, Yu. (2020, June 23). Online seminar "Prospects for biomethane production and consumption in Ukraine". Retrieved from www.youtube.com/watch?v= W5R2erQXE3o&t=4092s [in Ukrainian].
30. REGATRACE (2021). Retrieved from: www.regatrace.eu
31. International Energy Agency (2021). Net Zero by 2050. A Roadmap for the Global Energy Sector. Retrieved from iea.blob.core.windows.net/assets/20959e2e-7ab8-4f2a-b1c6-4e63387f03a1/NetZeroby2050-ARoadmapfortheGlobalEnergySector_CORR.pdf
32. Executive Vice-President Timmermans' Speech for the Eurogas Annual Meeting 2021 (2021 March 25). Retrieved from ec.europa.eu/commission/commissioners/2019-2024/timmermans/announcements/executive-vice-president-timmermans-speech-eurogas-annual-meeting-2021_en
Events calendar
M | T | W | T | F | S | S |
---|---|---|---|---|---|---|
1 | ||||||
2 | 3 | 4 | 5 | 6 | 7 | 8 |
9 | 10 | 11 | 12 | 13 | 14 | 15 |
16 | 17 | 18 | 19 | 20 | 21 | 22 |
23 | 24 | 25 | 26 | 27 | 28 | 29 |
30 |