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| 1 |
ID:
136229
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| Summary/Abstract |
Italy has witnessed an extraordinary growth in biogas generation from livestock effluents and agricultural activities in the last few years as well as a severe isomorphic process, leading to a market dominance of 999 kW power plants owned by “entrepreneurial farms”. Under the pressure of the economic crisis in the country, the Italian government has restructured renewable energy support schemes, introducing a new program in 2013. In this paper, the effects of the previous and current support schemes on the optimal plant size, feedstock mix and profitability were investigated by introducing a spatially explicit biogas supply chain optimization model, which accounts for different incentive structures. By applying the model to a regional case study, homogenization observed to date is recognized as a result of former incentive structures. Considerable reductions in local economic potentials for agricultural biogas power plants without external heat use, are estimated. New plants are likely to be manure-based and due to the lower energy density of such feedstock, wider supply chains are expected although optimal plant size will be smaller. The new support scheme will therefore most likely eliminate past distortions but also slow down investments in agricultural biogas plants.
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| 2 |
ID:
126472
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| Publication |
2013.
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| Summary/Abstract |
In recent years, Italy has witnessed a proliferation of agricultural biogas plants. This article argues that institutional factors have played an important role in their diffusion. It describes the state and evolution of agricultural biogas in Italy, and then investigates the extent to which institutional pressures have been influential in shaping organizational models of biogas production. It finds that the dominance of one particular organizational model is the result of an isomorphic process in which a monopolistic market, legal structures, and subsidies play a role. The prevalence of this organizational model, however, does not lead to the effective use of biogas production, and furthermore it results in low environmental efficiency. For a more sustainable development of bioenergy, Italian policy-makers should reform the existing institutional framework by reorganizing subsidies, liberalizing the management of gas grids, and involving farmers in local projects.
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