Development of local and regional forest based bioenergy in Norway – Supply networks, financial support and political commitment

Abstract

However studies shows that there are difficulties concerning the profitability in the sector.We approach the question from a supply chain perspective using a comparative case method. Five cases of local and regional forest based (wood chips) supply of heat in three regions were studied. The actors in the supply chains normally specialize in one or two stages in the chain and sell fuel and/or heat to municipal institutions and district heating plants. In all cases national financial support was important for releasing critical investments at various stages in the chains. Local political involvement was vital for the establishment of the chains, through influencing perceptions and ideas and through various techno-economical adaptations. Moreover, all focal actors in the chains were engaged in forest-related businesses and they benefit from using resources and obtaining income in different, related supply chains. Hence, they exploit "economies of scope". The links across supply chains make it relevant to study them as supply networks rather than chains. This also has managerial consequences. The profitability in the chains seems still quite modest, but nevertheless they contribute in increasing the share of bioenergy in Norway. Actors' exploitation of "economies of scope", local political engagement and national instruments for financial support are important factors in this development. ª

Assessment of agricultural biomass residues to replace fossil fuel and hydroelectric power energy: A spatial approach

“…Although our discussion did not focus on social matters, the results may be used to promote greater justice regarding energy access because the spatial analysis describes the local higher or lower residue availability, and as a result, the availability of energy (electric and ethanol) in accordance with some analyses that have had a local/social focus, such as the work of Damgaard et al We predict that this work will support greater social justice due to the decentralization of biogas generation; however, this goal will require public policies that lead energy companies to take more actions locally. Forbord et al reinforced the idea that public policies are fundamental to the development of bioenergy at the local and regional levels in cases analyzed in Norway.…”

Energy wood from forests—stakeholder perceptions in five European countries

“…This synergy is a side-objective of renewable energy policies and-especially in rural areas-remains an important aim of enforced energy wood production and use [10,23,50,56]. Different studies support the assumption that energy wood production and use can have a positive influence on the development of rural economies and employment [57][58][59][60]. The importance of tapping the potential of this synergy is emphasised in Spain where the recent economic crisis had the most severe impacts on labour markets compared to the other countries [61], and where energy wood production could thus be promoted for its positive effect on employment and moreover for its potential synergies with fire prevention.…”

Modeling Local Resources and Constraints on the Energy Development

“…There is significant response in agricultural markets. Gonzalez-Salazar et al (2016) use a modelling suite which consists of traditional energy system model which considers biomass as a primary resource, economic model, land use and trade model, and climate model. As it is noted by authors, the last three models are relatively simple.…”

“…Increasing use of local resources not only affects employment situation in rural areas which is directly connected with biomass growing and processing, but also creates new business models and requires innovative managerial decisions which have to take into account the recent trends of biomass utilization. As it was shown by Forbord et al (2012), the entrepreneurs and managers in the chains are able to integrate resources in existing and new activities, thus, bioenergy is interesting as a business activity in combination with other income sources (e. g., wood chips production from wood residues that remain after products with higher value added are produced). Such integration of resources means that even relationships of employment in bioenergy sector are not necessary direct.…”