Economic and Legal Conditions and Profiitability of Investments in Agricultural Biogas Plants in Poland

Problems of Agricultural Economics, Forthcoming

24 Pages Posted: 9 Oct 2016

See all articles by Piotr Sulewski

Piotr Sulewski

Warsaw University of Life Sciences

Edward Majewski

National Research Institute (PIB) - Institute of Agricultural and Food Economics - National Research Institute (IAFE-NRI)

Adam Wąs

National Research Institute (PIB) - Institute of Agricultural and Food Economics - National Research Institute (IAFE-NRI)

Magdalena Szymańska

Warsaw University of Life Sciences

Agata Malak-Rawlikowska

Warsaw University of Life Sciences

Aleksandra Fraj

Warsaw University of Life Sciences

Adrian Trząski

Warsaw University of Technology

Andrzej wiszniewski

Warsaw University of Technology

Marek Ambrozy

Independent

Date Written: October 6, 2016

Abstract

The paper analyses profitability of biogas production in livestock farms in Poland with a focus on micro-biogas plants. Due to the high value of investments a crucial issue, from the farmers’ point of view, is the mechanism of financial support. The efficiency of investments has been measured assuming three variants of power of CHP plants. In addition, two scenarios of financial support have been taken into consideration: the “old” mechanism of green certificates and a forthcoming mechanism based on the new Act on Renewable Energy Resources. The new system introduces feed-in tariffs for small plants and auctions and guarantees of purchase for larger biogas plants. The results of the analyses indicate a strong dependence of the financial effects of micro-biogas plants on subsidies. It can be concluded that, under the current state of market development and financial support offered to micro-scale biogas production, investments in biogas plants are in general unprofitable.

Keywords: biogas plants, renewable energy sources, farm

Suggested Citation

Sulewski, Piotr and Majewski, Edward and Wąs, Adam and Szymańska, Magdalena and Malak-Rawlikowska, Agata and Fraj, Aleksandra and Trząski, Adrian and wiszniewski, Andrzej and Ambrozy, Marek, Economic and Legal Conditions and Profiitability of Investments in Agricultural Biogas Plants in Poland (October 6, 2016). Problems of Agricultural Economics, Forthcoming, Available at SSRN: https://ssrn.com/abstract=2848972

Piotr Sulewski (Contact Author)

Warsaw University of Life Sciences ( email )

ul. Nowoursynowska 159
Warsaw, 02-776
Poland

Edward Majewski

National Research Institute (PIB) - Institute of Agricultural and Food Economics - National Research Institute (IAFE-NRI) ( email )

ul. Świętokrzyska 20
Warszawa, 00-002
Poland

Adam Wąs

National Research Institute (PIB) - Institute of Agricultural and Food Economics - National Research Institute (IAFE-NRI) ( email )

ul. Świętokrzyska 20
Warszawa, 00-002
Poland

Magdalena Szymańska

Warsaw University of Life Sciences ( email )

ul. Nowoursynowska 159
Warsaw, 02-776
Poland

Agata Malak-Rawlikowska

Warsaw University of Life Sciences ( email )

ul. Nowoursynowska 159
Warsaw, 02-776
Poland

Aleksandra Fraj

Warsaw University of Life Sciences ( email )

ul. Nowoursynowska 159
Warsaw, 02-776
Poland

Adrian Trząski

Warsaw University of Technology ( email )

Pl. Politechniki 1
Warsaw, 00-661
Poland

Andrzej Wiszniewski

Warsaw University of Technology ( email )

Pl. Politechniki 1
Warsaw, 00-661
Poland

Marek Ambrozy

Independent ( email )

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