The combined role of policy and incentives in promoting cost efficient decarbonisation of energy: a case study for biomethane

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dc.contributor.authorRajendran, Karthik
dc.contributor.authorÓ Gallachóir, Brian P.
dc.contributor.authorMurphy, Jerry D.
dc.contributor.funderEnvironmental Protection Agencyen
dc.contributor.funderGas Networks Irelanden
dc.contributor.funderScience Foundation Irelanden
dc.date.accessioned2019-03-15T12:43:54Z
dc.date.available2019-03-15T12:43:54Z
dc.date.issued2019-02-10
dc.date.updated2019-03-15T12:33:30Z
dc.description.abstractThe levelized cost of energy of biomethane from food waste was assessed at 87 €/MWh, (87 c/L diesel equiv.). Allowing for gate fees the incentive required for financial viability was 0.13 €/m3 (13 €/MWh). For context, various successful renewable energy policies were analysed across the EU including photovoltaics and biogas in Germany and electric vehicles in Norway. The schemes were compared with an incentive applied (or required) per tCO2 avoided. For Ireland, this study predicts that biomethane needs a financial subsidy of less than 180 €/tCO2 avoided, while most successful EU systems offer incentivisation levels less than 260 €/tCO2 avoided. In terms of incentives per tCO2 avoided Electric Vehicles (EV) stand out. When including all incentives such as grants and avoided parking costs, EVs can receive a sixteen-fold higher incentive as compared to biomethane based on tCO2 emissions avoided. The rationale for this high incentive and supporting policy is based on the requirement to initiate a new infrastructure that would not otherwise happen without intervention of a government incentivising decarbonised transport and clean air. Biomethane as a transport fuel requires a very significant change in infrastructure, including the provision of compressed natural gas service stations and natural gas vehicles. Initially (as for other successful renewable energy systems) larger incentives would be required to allow initiation of the industry, but these subsidies can be reduced over time. Biomethane as a transport fuel offers similar rewards as for electric vehicles, decarbonised transport and clean air along with energy security, renewable energy, indigenous jobs and supporting greening of agriculture.en
dc.description.sponsorshipEnvironmental Protection Agency, Ireland and Gas Networks Ireland (co-funded EPA, 2016-RE-DS-6); Science Foundation Ireland (SFI MaREI Centre (Grant no. 12/RC/2302 and 16/SP/3829))en
dc.description.statusPeer revieweden
dc.description.versionAccepted Versionen
dc.format.mimetypeapplication/pdfen
dc.identifier.citationRajendran, K., O'Gallachoir, B. and Murphy, J. D. (2019) 'The combined role of policy and incentives in promoting cost efficient decarbonisation of energy: A case study for biomethane', Journal of Cleaner Production, 219, pp. 278-290. doi: 10.1016/j.jclepro.2019.01.298en
dc.identifier.doi10.1016/j.jclepro.2019.01.298
dc.identifier.endpage290en
dc.identifier.issn0959-6526
dc.identifier.journaltitleJournal Of Cleaner Productionen
dc.identifier.startpage278en
dc.identifier.urihttps://hdl.handle.net/10468/7636
dc.identifier.volume219en
dc.language.isoenen
dc.publisherElsevieren
dc.relation.projectinfo:eu-repo/grantAgreement/SFI/SFI Research Centres/12/RC/2302/IE/Marine Renewable Energy Ireland (MaREI) - The SFI Centre for Marine Renewable Energy Research/en
dc.relation.urihttp://www.sciencedirect.com/science/article/pii/S0959652619303257
dc.rights© 2019 Elsevier Ltd. All rights reserved. This manuscript version is made available under the CC-BY-NC-ND 4.0 licenseen
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/4.0/en
dc.subjectEnergy policyen
dc.subjectRenewable heat incentiveen
dc.subjectBioenergyen
dc.subjectBiomethaneen
dc.subjectCO emissionsen
dc.titleThe combined role of policy and incentives in promoting cost efficient decarbonisation of energy: a case study for biomethaneen
dc.typeArticle (peer-reviewed)en
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