Abstract
Abstract In view of the growing importance of distributed generation, the pluralization of the energy matrix close to large consumption centers has become necessary. In this sense, the energy sector can contribute to electricity generation using waste products such as vinasse, the most relevant in terms of volume and polluting capacity. The general objective of this article is to analyze the economic feasibility of using vinasse for electricity generation, and as a specific objective, to identify the viable price range of MWh in free and regulated energy environments and the productive capacity of plants for this type of investment. The methodology used was quantitative research, based on the cost structure of a biodigester IC internal combustion engine with 38% yield and vinasse logistics according to the production capacity of autonomous plants of 100 m3, 1,000 m3, and 3,000 m3ethanol/day for scenarios with and without tax exemptions for a price range between US$ 26.04 and US$ 130.20/MWh. The analysis shows that the use of vinasse for electricity generation is restricted to medium and large producers. Furthermore, the price of MWh is more relevant than the tax exemption for the feasibility of this type of project. This corroborates the constant requests from the sugar-energy sector to hold exclusive electricity auctions for biomass, given its cost structure and its social, economic, and environmental externalities.
Highlights
Electricity is a fundamental requirement for a nation’s economic and social development, and having a sufficient volume of energy that is reliable and appropriate to the needs of this development is a critical factor for progress
At the time of this article’s writing, there are no existing vinasse plants, so this study has used a simulation based on secondary sources collected from three governmental bodies: the National Petroleum Agency (ANP, 2017), whose data refers to the size of ethanol production plants; the National Electricity Agency (ANEEL, 2016), whose data is related to the auction prices for electricity within the regulated auction environment (ACR); and the Congress of Electricity Commercialization (2017), with data referring to the prices practiced in the free auction environment (ACL)
In this sense, according to the method and economic scenario described in this research, plants with a production of 1,000 m3 and 3,000 m3 ethanol/day present up-close and attractive values of internal rate of return (IRR) for investment at a price of US$ 78.12/MWh; for plants with production of 100 m3 ethanol/day, investment feasibility occurs at a price of US$ 104.16/MWh
Summary
Electricity is a fundamental requirement for a nation’s economic and social development, and having a sufficient volume of energy that is reliable and appropriate to the needs of this development is a critical factor for progress. It should be economically competitive and not harmful to the environment. Having a diversified, clean, low-cost and structured energy matrix is essential for economic and social development that respects the environment. Brazil has a varied and relatively clean energy matrix compared with other nations, it has one of the most expensive costs per kWh in the world. Electricity production costs rose and Brazilian industry lost competitiveness
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