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2026 Vol.38, Issue 2
Decentralized Renewable Energy for Smart Agriculture: Economic and Carbon Reduction Potentials of Biomass CHP Systems
Sunyong Park1
,
Jiwook Yang1
,
Sungyeol Kim2
,
Kyojung Hwang3
,
JaeJung Lee3
,
Sunhwa Ryu4*
1Post-doctoral Research Associate, Forest Industrial Materials Division, National Institute of Forest Science, Seoul 02455, Korea
2Research Associate, Forest Industrial Materials Division, National Institute of Forest Science, Seoul 02455, Korea
3Researcher, Forest Industrial Materials Division, National Institute of Forest Science, Seoul 02455, Korea
4Senior Researcher, Forest Industrial Materials Division, National Institute of Forest Science, Seoul 02455, Korea
*Corresponding Author
30 June 2026. pp. 117-135
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Abstract

This study assesses the techno-economic feasibility of a heat-led biomass combined heat and power (CHP) system for a 10-ha smart greenhouse complex in Sangju, Korea. A dispatch-based simulation was conducted to determine the optimal electrical capacity required to meet a fixed annual heating demand of 46.74 GWhth. System capacities between 1 and 9.9 MWe were evaluated, and three representative configurations (5, 5.5, and 6 MWe) were analysed in detail. All configurations satisfied the annual heating demand under heat-led operation. However, thermal capacity factors declined from 38.8% (5 MWe) to 32.3% (6 MWe) as installed capacity increased, indicating reduced utilization once demand saturation was reached. Total capital investment ranged from 21.70 to 26.04 billion KRW. Over a 20-year project horizon with a 7% discount rate, the 5.5 MWe system demonstrated the strongest economic performance, achieving an NPV of 3.36 billion KRW, ROI of 1.33%, and B/C ratio of 1.04. The 5 MWe configuration showed comparable feasibility with slightly lower profitability, while the 6 MWe system exhibited reduced financial returns due to higher capital intensity and limited incremental revenue. Sensitivity analysis (±10%) identified heat tariff levels as the dominant economic driver, followed by fuel cost. Electricity prices had a moderate influence, and carbon-credit revenues played a minor role. Annual CO2 reductions ranged from 7,503 to 9,470 tCO2 compared to kerosene-based heating. The results indicate that a mid-scale (approximately 5.5 MWe) heat-led biomass CHP system offers the most balanced trade-off between utilization efficiency and economic performance under current conditions.

Keywords
Biomass-based CHP
Carbon neutrality
Levelized cost of heat
Smart greenhouse energy system
Techno-economic analysis
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Information
  • Publisher :Agriculture and Life Sciences Research Institute, Kangwon National University
  • Publisher(Ko) :None
  • Journal Title :Journal of Agricultural, Life and Environmental Sciences
  • Volume : 38
  • No :2
  • Pages :117-135
  • Received Date : 2025-12-04
  • Revised Date : 2026-03-04
  • Accepted Date : 2026-03-05
  • DOI :https://doi.org/10.22698/jales.20260009
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