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A competitive market for green pellets; Scenarioanalyse - fungerende pelletsmarked

Abstract

This report is one of two reports for Enova in the project 'Functional Green Pellet Market'. The main focus of this report is to increase the knowledge of how the green pellet market in Norway adjusts to different policy instruments and discuss the terms for policy design for Enova. Our findings suggest that the green pellet value chain is threefold because of low transportation costs, both for the raw material and the manufactured product. Hence, only a demand side subsidy scheme would increase the domestic consumption of green pellets. Small local integrated value chains could be profitable if they are based on particularly cheap local raw materials. However, such solutions will not be sufficient to establish a competitive market. There will always be a risk that a subsidy scheme only for green pellets would displace other profitable bio energy, and thus have adverse impacts on market efficiency. In this case, a technology neutral subsidy scheme for bio energy would be preferable for market efficiency. The model developed in this project simulates all relevant heating technologies in order to reveal the effect of technology neutral as well as technology discriminating policy instruments. Nevertheless, actual market share rarely equals the economic market  More>>
Publication Date:
Sep 15, 2010
Product Type:
Technical Report
Report Number:
NEI-NO-1699
Resource Relation:
Other Information: refs., figs., tabs
Subject:
09 BIOMASS FUELS; BIOFUELS; BIOMASS; WOOD FUELS; PELLETS; FUEL PELLETS; ENERGY POLICY; PRICING REGULATIONS; ECONOMIC POLICY; NORWAY
OSTI ID:
1000236
Research Organizations:
Xrgia, Sandvika (Norway)
Country of Origin:
Norway
Language:
Norwegian
Other Identifying Numbers:
TRN: NO1005658
Availability:
OSTI as DE01000236
Submitting Site:
NW
Size:
56 p. pages
Announcement Date:
Dec 21, 2010

Citation Formats

Lisleboe, Ole, and Ingeberg, Kjetil. A competitive market for green pellets; Scenarioanalyse - fungerende pelletsmarked. Norway: N. p., 2010. Web.
Lisleboe, Ole, & Ingeberg, Kjetil. A competitive market for green pellets; Scenarioanalyse - fungerende pelletsmarked. Norway.
Lisleboe, Ole, and Ingeberg, Kjetil. 2010. "A competitive market for green pellets; Scenarioanalyse - fungerende pelletsmarked." Norway.
@misc{etde_1000236,
title = {A competitive market for green pellets; Scenarioanalyse - fungerende pelletsmarked}
author = {Lisleboe, Ole, and Ingeberg, Kjetil}
abstractNote = {This report is one of two reports for Enova in the project 'Functional Green Pellet Market'. The main focus of this report is to increase the knowledge of how the green pellet market in Norway adjusts to different policy instruments and discuss the terms for policy design for Enova. Our findings suggest that the green pellet value chain is threefold because of low transportation costs, both for the raw material and the manufactured product. Hence, only a demand side subsidy scheme would increase the domestic consumption of green pellets. Small local integrated value chains could be profitable if they are based on particularly cheap local raw materials. However, such solutions will not be sufficient to establish a competitive market. There will always be a risk that a subsidy scheme only for green pellets would displace other profitable bio energy, and thus have adverse impacts on market efficiency. In this case, a technology neutral subsidy scheme for bio energy would be preferable for market efficiency. The model developed in this project simulates all relevant heating technologies in order to reveal the effect of technology neutral as well as technology discriminating policy instruments. Nevertheless, actual market share rarely equals the economic market potential. Thus, the model allows for different scenarios for actual market penetration for green pellet. (Author)}
place = {Norway}
year = {2010}
month = {Sep}
}