Abstract

This paper addresses situation of biomass as a crucial renewable energy source (RES) the Czech Republic in relation to goals of EU Directive 2001/77 and the State Energy Policy of 2004 of the Czech Republic. Since the resources of residual biomass are limited it is necessary to grow biomass e.g. dedicated energy crops in order to cover an increasing demand for biomass. The present paper uses economic models of short rotation coppice (SRC) of fast-growing trees to predict long-run marginal costs on biomass grown for the purpose of energy generation. Economic models of plantations include all money flows induced by fruition of a particular plantation. The resulting cost of biomass is established on the condition that the investor will gain a profit from the capital invested as long as the plantation exists. Calculations reflect specific conditions in the Czech Republic and use input data from current experimental plantations of poplar and willow clones. The part of this paper deals with landscape functions of fast growing trees and with the possibilities for future development of SRC.

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