Cost/benefit analysis of biomass energy supply options for rural smallholders in the semi-arid eastern part of Shinyanga Region in Tanzania
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Abstract
This study analyzes the economic feasibility of sustainable smallholder bio-energy production under semi-arid conditions. The eastern part of Shinyanga region in Tanzania was chosen as a case study area. Three different sustainable biomass energy supply systems were compared by means of cost/benefit analysis: a small-scale forestation project for carbon sequestration, a short rotation woodlot and a Jatropha plantation, thereby using the produced Jatropha oil as a substitute for fuelwood or diesel. Rotational woodlots are most profitable with a Net Present Value of up to US20071165/ha,areturnonlabourofuptoUS2007 6.69/man-day and a fuelwood production cost of US20070.53/GJ,comparedtoalocalmarketpriceofUS2007 1.95/GJ. With a production cost of US200719.60/GJ,Jatrophaoilistooexpensivetobeusedasanalternativeforfuelwood.Insteaditcanbeutilizedeconomicallyasadieselsubstitute,atanobserveddieselcostofUS2007 1.49/l. The mean annual biomass increment (MAI) in semi-arid East Shinyanga is too low to collect sufficient benefits from trading forestation carbon credits under the Clean Development Mechanism (CDM) to cover the costs of forestation and forest management.Bio-energy CDM Rotational woodlots Jatropha Smallholder Semi-arid