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SOCIAL COST-BENEFIT ANALYSIS OF SMALL-SCALE BIOGAS PLANTS IN RURAL LIMPOPO
Paper prepared for presentation at the 19th ICABR Conference“IMPACTS OF THE BIOECONOMY ON AGRICULTURAL SUSTAINABILITY,
THE ENVIRONMENT AND HUMAN HEALTH”Ravello (Italy): June 16 - 19, 2015
AUTHORS: TICHAONA PFUMAYARAMBA1, and DAVID TINARWO2 1Department of Agricultural Economics and Agribusiness,
2Department of PhysicsUniversity of Venda, South Africa
Introduction
• South Africa faces a serious energy crisis. • With a total generation capacity falling short of current demand – there are currently frequent experiences of load shedding
• There is still close the 30% of households without electricity the mojority being in rural areas
• Rural electrification is necessary from developmental and equity perspectives (Marquard et al, 2007)
Intro cont.• It is clear that it will take a while for ESKOM the power utility to meet this demand and expand the grid to non-electrified households
• Households without electricity rely on alternative sources to meet their needs – cooking, lighting, heating
• Given this scenario, various government agencies have taken an interest in alternative energy sources
• Renewable energy – wind, solar, biogas – are all options being explored
• Alternatives available to rural households – firewood, LP gas, paraffin, charcoal,
• In rural Limpopo small scale biogas plants are being piloted – Dept of physics at University of Venda
Current Energy Sources in Study Area
• Renewable Energy has the potential to address not only the energy needs of rural communities, but it must also can contribute to poverty eradication, public health & environmental sustainability and stimulate economic development.
Firewood sales
Firewood Usage
Limpopo Project• One of the pilot sites is a Women’s Co-operative center running a creche.
• Presently firewood worth R1000.00 is bought from local suppliers every month and used on open fire-three stone stove system to prepare food for the 250 children and the 24 adults working at the co-operative.
• In addition to firewood cooking, the co-operative uses up to 48 kg of bottled gas per month - R900.00.
Biogas Digester Installation
Pilot Project Site • 3200 layers chicken it rears year round. • Each bird producing about 0,09513kg of droppings per day, [ASAE standard D384.1, 1992] a total of about 304kg of wet manure is produced every day
• The center needs approximately 7m3 of gas to completely replace the firewood and LP gas.
• 2 x 6 m3 fixed dome prefabricated Agama bio-digesters were installed and coupled
• Supply one burner in the kitchen about 30 m away. Each digester container can produce a maximum of 2m3 of biogas every day - equivalent to 4 hours of burning time /0.8 kg LPG, or 3.5kWh continuous electrical output.
• The biogas is captured and stored within the tank.
Socio-Economics of Small-scale Biogas• The purpose is to conduct a cost benefit analysis of the installation of small-scale household biogas digesters when the household incurs the initial investment cost.
• Methodology– Current household expenditures on energy– Investment cost for technology– Saved costs after implementation– Valuation of health benefits– Valuation of environmental benefits– Valuation of by-products from digester
Some Data from one Pilot Center
Challenges• Wide spread acceptance of the technology -Need for education for rural customers to understand the technology & wider benefits e.g. public health, environment etc.
• The technology is quite costly for rural households – initial investment cost
• Livestock numbers required to make technology viable• From research perspective – data collection and management of records
• Valuation of non-financial benefits – public health, environment, by-products
• Value added from by-products
Thank You