Utilizing Local Fuels in Isolated and Inaccessible Areas of the Irkutsk Region

Abstract

In the Irkutsk region, the decentralized energy supply zone relies on expensive autonomous diesel power plants for electricity supply and low- and medium-capacity boiler houses for heat supply. A common problem for these areas is untimely delivery and high cost of fuel. A possible solution may be the use of local fuels that do not require costly transportation. An analysis was made to assess the cost-effectiveness of substituting imported diesel fuel used for power generation for local oil and liquefied natural gas, as well as replacing the heat supply fuels with local fuel chips. The study shows that the cost of fuel is the key factor that affects the efficiency of an energy source in isolated and inaccessible areas. Therefore, switching to local fuels is a highly cost-effective option for existing energy sources. By replacing diesel fuel with oil in nine settlements of the Katangsky district, the subsidies to the Irkutsk region can be reduced by RUR 95.6 million annually. The conversion of diesel power plants to liquefied natural gas in six settlements of the Irkutsk region will reduce the subsidies by RUR 41.9 million annually. The study concludes that, given the small population in the communities at issue, the use of wood waste for heat supply is only suitable in four settlements in the Irkutsk region. The heat sources in all these localities are departmental, which means they are not eligible for subsidies.