Performance of biogas plant analysis and policy implications: Evidence from the commercial sources

Abstract

This study investigates the potential of biogas as a commercially viable alternative energy source in Pakistan due to her large agricultural base. The production of biogas is a source of utilizing enriched livestock manure resulting in smell reduction, village sanitation, and environmental improvement. The cost-benefit analysis approach is adopted to explore the empirical findings. The analysis is carried out on four different commercial biogas plants with capacities ranging from 20 to 200 m3 that have been erected in various parts of Pakistan, the majority in Punjab province due to their agricultural and animal capacity. Total inflows are calculated which include installation, administrative, operation, and maintenance costs. Although benefits extracted are examined in terms of monetary value. Meanwhile, it is concluded through quantitative assessment that 8 out of 9 plants are giving good returns, which can cater to the energy needs. Furthermore, it can be suggested that commercial use of biogas is feasible and profitable with an acceptable rate of returns with proper operating and feeding of the plant is essential for success. Therefore, training should be provided to agriculture and livestock farmers so that they can perform better in the development of biogas plants.