Household energy economics in rural Ethiopia: A cost-benefit analysis of biogas energy

Publikations-Art

Zeitschriftenbeitrag (peer-reviewed)

Autoren

Gwavuya, SG; Abele S; Barfuss, I; Zeller, M; Müller, J

Erscheinungsjahr

2012

Veröffentlicht in

Renewable Energy

Verlag

Elsevier

Band/Volume

48/

DOI

10.1016/j.renene.2012.04.042

Seite (von - bis)

202-209

Schlagworte

Dung

Limited success in promoting improved energy sources, such as biogas, in rural areas of developing
countries has been partly blamed on insufficient understanding of household energy use patterns. In this
study, we assess the costs of energy generation from major energy sources (firewood and dung) in rural
Ethiopia, as well as the economic potential of biogas as an alternative in addressing both energy and food security challenges. Results show that households in rural areas largely collect their own fuel, with
female household members being mainly responsible for the chore. By investing in biogas plants,
households could save time and energy, and have a supply of slurry that can be used as fertilizer in
agricultural production. A cost-benefit analysis of biogas plants yields positive net present values for
households collecting their own energy sources. Even higher net present values are obtained for
households purchasing all of their energy needs; these households stand to gain significantly from the
financial benefits of energy cost savings with biogas technology. Results are highly dependent on slurry
being effectively used as a source of fertilizer and on the price of the replaced energy source. Thus the
promotion of slurry use as fertilizer must be an integral part of a successful biogas programme. Another
important issue is that at present, biogas plants are highly subsidized and thus the above conditions hold under the assumptions of subsidies. When analysed without subsidies, indicators are still positive, yet amortisation periods are significantly longer and close to the depreciation point, so that investment risks increase.