Cost Analysis of straw-based power generation in Jiangsu Province, China

• Published in: Applied energy Vol. 102; pp. 785 - 793
• Main Authors: Zhang, Qin, Zhou, Dequn, Zhou, Peng, Ding, Hao
• Format: Journal Article
• Language: English
• Published: Kidlington Elsevier Ltd 01-02-2013; Elsevier
• Subjects: Applied sciences; bioenergy; Biomass; coal; electricity; Energy; energy costs; Exact sciences and technology; farmers' attitudes; life cycle assessment; Natural energy; operating costs; planning; Power generation; Power plant; power plants; Straw; supply balance; surveys; Asia; China; China, People's Rep., Jiangsu Prov; Biomass; Power plant; Power generation; Straw; Electric power plant; Power production; Electric power production; Cost analysis
• ISSN: 0306-2619; 1872-9118
• DOI: 10.1016/j.apenergy.2012.08.032

► We estimate the straw-fired power generation costs in Jiangsu Province, China. ► The causes for the deficit of straw-fired power generation plants are identified. ► Poor management is the primary factor for explaining the deficit of the plants.
As one of the most developed provinces in China, Jiangsu Province has been actively developing bio-energy in order to deal with its electricity supply shortage. By the end of 2010, there are 12 grid-connected straw-based power plants, but only two of them are profitable in this province. This paper presents a simple and detailed method for estimating the cost of straw-based power generation with life cycle analysis, and identifies the main causes for the financial deficit of these plants through a sensitivity analysis and survey. It concludes that: (i) compared with coal-fired power generation, the cost of straw-based power generation is indeed high. (ii) The fuel cost takes the largest share in the operation cost. (iii) The basic causes of the high cost are from straw characteristics, mismatch between demand and supply, immature technology, inappropriate project planning and low motivation of farmer selling straw. Based on the basic causes, we propose the countermeasures.