Financial Tools for Biogas Project Implementation at Wastewater Treatment Plants: A Case Study of the Russian Federation

Abstract

Biogas projects have been recognized as one of the most efficient tools for implementing the principles of circular economy at wastewater treatment plants: negative environmental waste impact reduction along with the energy independence. These projects are widespread in developed countries, but its distribution in developing countries such as the Russian Federation leaves much to be desired. The article discusses the four financial instruments for implementation of biogas projects in the Russian Federation compared to developed countries, including the analysis of sectoral background, potential benefits, drivers and limitation. The authors concluded that barriers for the development of biogas projects are not directly related to the tool entity or its application: significant moral and physical deterioration of technological process line makes the use of these tools untimely, while the long-term payback period leads towards poor efficiency.

Tariff Financing of Biogas Projects at Wastewater Treatment Plants: A Comparative Study of Russian Federation

“…For instance, methane is more than 21 times as potent as carbon dioxide at the atmosphere heat-trapping effect. The excess of GHG leads towards irreversible climate patterns change, spatial and quantitative growth of natural disasters, and ultimately negative threat to the humanity and wildlife [9].…”

Screening of Factors for Assessing the Environmental and Economic Efficiency of Investment Projects in the Energy Sector

“…The economic factors have significant impact on the evaluation process of projects in energy industries. Such indicators as the return on investment (ROI) and payback period are predominantly used for economic attractiveness of capital investment evaluation [ 22 , 23 , 24 ]. These values depend on a huge number of parameters that affect the investment costs, revenues and savings, and operational expenditures [ 24 ].…”

“…Such indicators as the return on investment (ROI) and payback period are predominantly used for economic attractiveness of capital investment evaluation [ 22 , 23 , 24 ]. These values depend on a huge number of parameters that affect the investment costs, revenues and savings, and operational expenditures [ 24 ]. Capital costs for power plant construction have significant fluctuations depending on energy source and the technique used.…”