Title:
Economic Assessment of Biomass Heating Projects in France: Impact of a Carbon Tax - Development and Use of a Simulation Model Fed by the Profession
Author(s):
Servant, J.M., Lefrançois, G.
Document(s):
Paper
Abstract:
To decide whether or not a biomass heating project should be undertaken, an assessment of its economic relevance has to be made. This concept is mostly based on a comparison of the “full cost” between the heat produced by the biomass unit and a “reference” fossil alternative. The purpose of the work is to set up a common framework to help and manage this process. This implies harmonizing the principles and building a simulating tool designed to enable to compare the impact of the various parameters influencing the economical outcome as well as the associated subsidies required, in the French context. Leveraging on this tool, several sensitivity analysis have been performed. A specific application has been conducted to determine what impact the potential introduction of a carbon tax in France would have, in time, on projects’ economic relevance and therefore on biomass projects development overall. A comparison with Sweden, which already has implemented such a tax, has also been made. Given the anticipated levels, such a measure would indeed have a positive impact, but would not prevent from continuing to require public subsidies, at least until fossil fuel prices stabilize to a higher level.
Keywords:
assessment, biomass, cost analysis, economics, heat, modelling, modeling
Topic:
Policies and ensuring sustainability
Subtopic:
Financing of bioenergy projects
Event:
18th European Biomass Conference and Exhibition
Session:
VP5.5.6
Pages:
2309 - 2313
ISBN-13:
978-88-89407-56-1
ISBN-10:
88-89407-56-5
Paper DOI:
10.5071/18thEUBCE2010-VP5.5.6
Price:
FREE
