Heliyon (Sep 2022)
Financial and functionality analysis of a biogas plant in Bangladesh
Abstract
Installation of a biogas plant in a rural region has become a viable alternative energy source with a variety of health and environmental advantages. Though Bangladesh has enormous resources for biogas production, biogas energy production is infancy stage in Bangladesh. The study aims to explore the economic aspect of household-level biogas plants and determine the relationship between biogas plant functionality and different factors. For doing this, 300 biogas plant owners were interviewed from fifteen Upazilla in Bangladesh and respondents were chosen by a two-stage random sampling technique. The study shows by measuring partial budgeting, USD 294.80 per year can be earned by a family by introducing biogas plant. Cost-benefit analysis showed that a small biogas plant (USD 143.07/year) was most profitable, followed by a large biogas plant (USD 142.17/year). In discounted cost-benefit analysis, medium size biogas plant was found to be the most beneficial investment, followed by a small size biogas plant. Average NPV, BCR, PBP, and IRR of Biogas plant were USD 1629.11, 1.77, 2.93, and 48% with subsidy where USD 1525.25, 1.77, 3.75, and 43% without subsidy. The measurement of carbon trading also highlights the economic benefit of a biogas plant in Bangladesh. The bivariate relationship between the functionality of biogas plants with different factors highlights that higher educated, trained plant owners with quality mason and follow up services ensured the efficient operation of the biogas plant.
