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Barriers
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though biomass has considerable potential for satisfying
energy needs, most of this potential is currently not
utilised. The role that bioenergy will play in the future
will largely depend on overcoming the several barriers
to its greater market penetration. The most important
of them is the high costs and the perceived
risk by investors making bioenergy projects not
competitive with other forms of energy. Bioenergy plants
usually have higher investment costs compared with fossil
fuel plants which increases their payback period and makes
them less attractive to potential investors. Increased
depreciation rates could reduce the investment cost barrier
and encourage increased investment in bioenergy plants.
For small investors, a good solution is the joint investment
in a larger plant (a typical example of this is the investment
by small forest owners in local district heating systems
in Austria). |
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Regulatory and fiscal barriers to biomass
still exist in many cases, and include the absence
of effective markets such as green pricing to stimulate
the biomass industry. Continued subsidies for fossil fuel
energy, including incentives offered for further exploration,
research and development, and the non-appliance of the associated
externalities, together constitute another barrier preventing
bioenergy to enter the markets.
Securing adequate supplies of biomass fuel of acceptable cost
and quality is a prerequisite for the successful implementation
of any bioenergy project and thus the lack of certainty
of fuel supply is another significant barrier to
bioenergy projects. Fuel supply risks from
competing markets for the biomass can be overcome by appropriate
contracts and forward sales agreements, which can also cover
variations in quality and long term supply requirements to
further reduce the risk.
Fuel quality is a particular problem with biomass
fuels, since they are often bulky and have a high moisture content,
leading to variable and unpredictable quality. Fuel standardization
and techniques for fuel upgrading (drying, pelletizing, briquetting)
are advancing and will play an important part in the solution
of the problem.
Other barriers include the view of biomass by some people as
a ‘fuel of the past’, because of its historically
low efficiency and high atmospheric emissions. The operation
of low-performing conversion technologies in
many cases adds to this poor image. Biomass use in open fires
or poorly designed bioenergy plants is the cause of health
problems and high levels of particulate emissions,
but these problems can be overcome by proper installation of
clean burning combustors that meet modern air emission standards.
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| Education is an universal answer to many existing barriers |
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Partnership between rural and urban populations in removing
the barriers to bioenergy |
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