Potentials and economic viability of small grain residue use as a source of energy in Serbia

One of the numerous challenges awaiting Serbia in the process of European integration is the increase in use of renewable sources of energy. The reason for such an increase is not merely a formal acceptance of European goals but the high energy import dependence, a relatively developed agricultural sector, with insufficiently exploited potentials of biomass, accompanied by an ever-growing awareness of the need for establishing long-lasting sustainable development. Serbia has a relatively undeveloped livestock sector which can absorb a limited portion of the biomass produced. Additionally, insufficient awareness on the part of farmers and the preconception of the low cost-effectiveness of biomass utilisation for the purpose of energy production are factors which, unsurprisingly, contribute to the current practice of burning the largest portion of the biomass produced on site, which is economically and ecologically unacceptable. This paper analyses the amounts of biomass available in Serbia and the prospects of its economically viable utilisation. The cost analysis conducted indicates that the energy obtained from small rectangular straw bales (the most widespread way of utilisation), is less costly by 28%, than the energy obtained from coal, whereas the energy obtained from round bales is cheaper by 34%. Sensitivity analysis has shown that the results obtained are relatively resistant to price changes in the most important inputs. The sensitivity is higher towards the efficiency of the machinery used; therefore, insistent efforts should be made for creating conditions where the introduction of more up-to-date technical solutions, already existing in developed countries, will become feasible.