The optimal biopower capacity in co-firing plants - An empirical analysis

Biomass fuels carry appealing features in replacing traditional fossil fuels, especially coal, in power generation. Due to the bulk, sparse and low-energy density drawbacks of biomass, many studies implicitly indicate small and limited scale in biopower generation. This study contributes to the bioenergy literature by explicitly studying the optimal biopower capacity of biopower co-firing technology in coal-fired power plants, which has practical implications for potential biopower practitioners, investors, and policymakers. This study indicates that the optimal biopower capacity of biomass co-firing in coal-powered plants is intermediate (i.e., 12 MW on average) in order to take advantage of economies of scale without incurring high transportation cost. Regional variations are also found in the aspects of production cost and optimal capacity due to local characteristics. Local biomass availability plays a critical role in shaping biopower's generation cost, optimal capacity and cost changing patterns. (C) 2018 Elsevier B.V. All rights reserved.