Production of renewable energy by biogas: an economic analysis of the chain in Italy

The role of agriculture in the field of energy is part of a wider framework of services that it can provide to the community, integrating the concept of multifunctionality that has been attributed to it. Without forgetting that agricultural activity represents an excellent opportunity to protect and enhance the territory, the production of agro-energy could become an opportunity for farmers, who would find new outlets, not only for their crops, but also for by-products and agro-livestock waste/slurry. In fact energy production can represent an important opportunity for farmers to diversify their business, broadening the prospects and scenarios for the agricultural and livestock farms. The role of agriculture in the field of energy is part of a wider framework of services that can it can provide to the community, integrating the concept of multifunctionality that has been attributed to it. Without forgetting that agricultural activity represents an excellent opportunity to protect and enhance the territory, the production of agro-energy could become an opportunity for farmers, who would find new outlets, not only for their crops, but also for by-products and agro-livestock waste/slurry. In fact, people are aware that there cannot be a single rapid replacement of existing energy resources with other more sustainable ones, and that the possible complementarity of new renewable energy sources (RES) must be studied in relation to the vocation of the territory in which its development is to be planned. The energy potential of a rural area through the use of biomass produced in by agricultural activity will now investigated in depth. The Authors describe the agro-energy production chains using biomass specifically, while ignoring other technologies (primarily photovoltaic and solar thermal) that can be developed, even with a profit, by the farmer, but which are not directly related to the traditional activity of a farm. Faced with a proven technology, the main problems with this energetic chain are to be found in the procurement of the biomass, costs for transport and management of the biomass and digestate and in the regulatory framework which is often difficult to interpret at the local level. The biogas chain will be examined in detail, especially in relation to the significant growth in the number of plants constructed. Through the study of the main features characterising the chain -plant authorization procedure, taxation of energy production, by-products of organic and agro-livestock origin and incentives and tariffs for energy production activity- the economic sustainability of biogas production plants will be evaluated. Finally the Authors present a comparison between incentive rates before and after 2012 in order to analyse the risks for economic profitability of the chain.