Little Incentive for Selling Energy Made from Biomass

Even though surplus energy generated by agribusiness using biomass could be sold, the lack of a tariff scheme and the low price of 0.08 per KW / h, in the case of bagasse, is making the business unattractive.

Wednesday, April 1, 2015

Currently electricity generated from biomass does not have its own rate, therefore it is adjusted to the prices of new hydroelectric plants, ranging from $0.09 to $0.12 per KW / h. The vast majority of power generation projects based on bagasse is used for subsistence production because this is more profitable than selling it.

Carolina Mora, spokeswoman for the Regulatory Authority for Public Services (Aresep), informed that despite what is claimed by agribusiness companies, "... The methodological framework already exists for any company who wants to get personalized prices for biomass, with sources which are distinct from bagasse, to make the request. In these cases, the company must give ARESEP complete information about the costs of their activity. Once eligibility is given, the body takes about two months to complete the process and fix the 'custom' rate. "

Congressman Otto Guevara, who introduced a bill that supports this sector, added "... We aim to encourage the purchase of biomass during the summer months, but improving the current selling price and recognizing more costs. This will serve to reduce pollution, lower oil bills and electricity tariffs. "

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