The Korean government plans to invest 722.5 billion won (including 246.2 billion won of government subsidies) for construction of 22 organic waste biogas plants by 2016 in order to expand the supply of new & renewable energy and cope with the ban on the dumping of organic wastes at sea according to the London Convention. However, it is reported that some operating biogas plants are not fully functional due to insufficient technique and experience of operating in Korea. In this regard, it is not only appropriate but also necessary to evaluate the feasibility of Biogas projects. This report provides estimates of the economic cost of Biogas projects with Cost-effectiveness Analysis (CEA).
The main findings of the evaluation are as follows. First, the analysis represents that government’s investment for R&D projects on biogas technology is not efficient and performance management is also not fulfilled thoroughly. Also, the developed biogas technology has rarely been deployed on a commercial scale. Second, the operation and management of biogas plants is inadequate and the cooperation between concerned departments and local governments is insufficient. As a result, biogas production and utilization efficiency is low, and those problems have caused low economic feasibility of biogas projects.
Based on the evaluation, this report suggests several policy recommendations. First, the evaluation and performance management of R&D projects on biogas technology should be strengthened. Second, Korean government needs to build up the foundation of biogas projects by training operation specialists of biogas plants, preparing manuals and guidelines for operating biogas plants, and intensifying the incentive system for inducing cooperation between concerned departments and local governments as well as the voluntary participation of the private sector. Third, Korean government needs to consider regional characteristics in the process of selecting the technology, scale, and location of biogas plants. Last, and most importantly, it is better to expand biogas projects gradually after thorough investigation of the detected problems with existing biogas plants.
Kim Sangwoo
The main findings of the evaluation are as follows. First, the analysis represents that government’s investment for R&D projects on biogas technology is not efficient and performance management is also not fulfilled thoroughly. Also, the developed biogas technology has rarely been deployed on a commercial scale. Second, the operation and management of biogas plants is inadequate and the cooperation between concerned departments and local governments is insufficient. As a result, biogas production and utilization efficiency is low, and those problems have caused low economic feasibility of biogas projects.
Based on the evaluation, this report suggests several policy recommendations. First, the evaluation and performance management of R&D projects on biogas technology should be strengthened. Second, Korean government needs to build up the foundation of biogas projects by training operation specialists of biogas plants, preparing manuals and guidelines for operating biogas plants, and intensifying the incentive system for inducing cooperation between concerned departments and local governments as well as the voluntary participation of the private sector. Third, Korean government needs to consider regional characteristics in the process of selecting the technology, scale, and location of biogas plants. Last, and most importantly, it is better to expand biogas projects gradually after thorough investigation of the detected problems with existing biogas plants.
Kim Sangwoo