Biogas as an alternative energy resource for Ukrainian companies: EU experience


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The paper deals with analysis of the preconditions of alternative energy market development in Ukraine. In this case study, the authors analyzed the EU experience. The results of analysis showed that the leader of the EU countries in renewable energy has already achieved the target (20%), which had been indicated. In addition, the findings showed that the share of renewable energy in gross final energy consumption has been increasing from year to year. The authors allocate that, according to the Ukrainian potential, biogas is the most perspective one among alternative resources. Moreover, results of analysis showed that Ukraine has the huge potential of agricultural sector. In this direction, the authors allocated the main types of the agricultural activities, which have the highest potential of biogas production: sugar factories, corn silage and poultry farms. The authors underlined that biogas spreading is restrained by the stereotypes that green investments are not attractive for investors. In order to analyze the economic efficiency of investments to the biogas installation, the authors calculated the profit from the biogas installation for poultry farm. The authors made two scenarios for calculation. The first – the whole volume of energy, which was generated from the biogas unit, will be sold with feed-in tariff. The second – the farm covers its own needs in electricity, the rest will be sold with feed-in tariff. The findings showed that the first scenario is more attractive. Moreover, the farm could receive higher profit if it installed the biogas in 2016, not in 2017. In addition, based on the EU experience and features of farm functioning, the authors approved that the biogas installation has not only the economic effect (profit and additional profit) for company, but also ecological and social effects for rural area, where this farm was located.

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    • Fig. 1. Share of renewable energy in gross final energy consumption in EU
    • Fig. 2. Environmental, social and economic benefits from biogas production at the poultry farm “Avis Ukraine”
    • Table 1. Dynamics of share of renewable energy in gross final energy consumption in the EU countries
    • Table 2. Growth rate of share of renewable energy in gross final energy consumption in the EU countries
    • Table 3. The Ukrainian indicative goals of biomass in gross energy consumption by 2020
    • Table 4. The dynamics of waste in Ukraine (2011–2016)
    • Table 5. The potential of biogas production in Ukrainian agriculture
    • Table 6. The estimated costs of installation the biogas unit and equipment
    • Table 7. The estimated productivity of biogas unit
    • Table 8. The findings for the first scenario for years 2016–2017
    • Table 9. The findings for the second scenario for years 2016–2017 year
    • Table 10. The findings: estimated profit and loss of opportunities, EUR