Critical Factors in Developing National Pellet Market

Kvaliteta sirovinskog potencijala, kao i tradicija u preradi drva te izraženi trendovi povećanja uporabe drvnih ostataka kao ekološkog i ob­novljivog materijala, imaju veliku ulogu u proširenju domaće industrije i trži­šta peleta. Iako ovisni o potražnji na tržištu i gospodarskoj isplativosti u odnosu na neobnovljive izvore energije, obnovljivi se izvori mogu i moraju početi bolje iskorištavati. Primjeri iz Austrije, Irske i Hrvatske ističu neke od ključnih čimbenika koji su utjecali na razvoj i stanje na tržištu peleta u tim zemljama. Na osnovi pregleda početnog i trenutačnog stanja i analize spome­nutih tržišta, u radu su definirani kritični čimbenici koji utječu na razvoj do­maćeg tržišta peleta. Kritični društveno-gospodarski čimbenici za razvoj nacionalnog tržišta peleta koji proizlaze iz predstavljenih analiza su: financij­ski poticaji, postojanje snažne drvno-prerađivačke industrije, strogi zahtjevi kvalitete na kotlove na pelete, uspostava djelotvornih mehanizama kontrole kvalitete za pelete, namjenski programi edukacije i certificiranje instalatera, povezivanje subvencija sa zahtjevima kvalitete za kotlove i certificiranjem in­stalatera, promotivne kampanje, poticanje nabave sustava grijanja na pelete za javne zgrade i razvoj poticaja za tvrtke koje pružaju energetske usluge.The quality of raw material, as well as tradition in wood pro­cessing and pronounced trends of increased use of wood residues as a renewa­ble and organic material play an important role in expansion of national pellet industry and market. Although dependent on market demand and eco­nomic feasibility in relation to non-renewable energy sources, renewable ene­rgy sources can and must be exploited in a better and more effective way. The use of wood pellets as fuel for domestic stoves and boilers and for co­firing in thermal power plants has been an amazing success story over the past 20 years. Socio-economic impact studies are commonly used to evaluate the local, regional and/or national implications of implementing particular development decisions. Typically, these impacts are measured in terms of eco­nomic variables, such as employment, revenue and taxes, but a complete ana­lysis must also include social, cultural and environmental issues. In many ways the social implications arising from local pellets production or any bioe­nergy activity represents the less clear and concrete end of impact studies; ne­vertheless they can be broken down into two categories: those relating to an increased standard of living and those that contribute to increased social co­hesion and stability. The primary instruments for the development of renewable energy technolo­gies across the world are international carbon reduction policy drivers. But the development of one type of technology over another on national, regional or local level is often a function of the intricate balance of socio-economic factors in that particular geographical location. The development of wood pellet mar­kets has been very strong in some coutries and almost non-existent in others. Based on these considerations, this paper is primarily focused on investiga­ting the critical socio-economic factors in developing national pellet markets. Examples from Austria, Ireland and Croatia highlight some of the key fac­tors that influenced the development and pellet market situation in these coun­tries. Based on initial review, current situation and analysis of these markets, this paper defines critical factors that influence development of national pellet market. Critical socio-economic factors for the development of national pellet market resulting from presented analysis are the following: • Financial incentives for investing in wood pellet heating rapidly increase uptake even when pellets are competitive with alternative fuels; • The existence of a strong sawmilling industry to provide, at least initially, a low cost and readily available source of raw material; • Stringent quality and sustainability requirements for pellet boilers with re­gard to emissions, efficiency and security – poor products can permanently damage the market, trigger serious environmental concerns and cause major functional problems;• • Establishment of effective quality control mechanisms for wood pellets. Establishment of national or international tracking systems that allow identification of the origin of pellets; • Dedicated educational programs and certification of installers establis­hing pellet heating systems.; • Linking of subsidies with quality requirements for boilers and certification of installers; • Procurement of wood pellet heating in public buildings to provide user confidence and to stimulate the supply chain; • Development of incentives for energy service companies to enter into the biomass heating market. In conclusion, looking at the overall situation regarding pellets production and utilisation a strong growth can be expected with political support at the EU level, playing a major role for the extension of the pellet industry into new member states in particular. The ambitious EU target of achieving 20 % of energy supply from renewable energy by the end of 2020 is impossible without dedicated policies to develop renewable heating. In addition, the on-going oil price rally and carbon dioxide reduction targets also encourage the expansion of the markets for pellets