7.4.2 . The “worst case” scenario. Five scenarios, as
listed below, were simulated to find the “worst case”.
Scenario 1: No subsidy from the government for
the concrete dome biogas system.
Currently, there is no government subsidy for the
covered lagoon system, only for the concrete dome
system.
Scenario 2: A 20 percent increase in operating and
maintenance costs, and a market interest rate increase
of 3 percent.
Scenario 3: A 20 percent decrease in benefits derived
from each method.
Risk factors, for example, sickness in pigs or the fish
in the ponds and fluctuations in the prices of the secondary
products sold like fertilizer and fish can reduce
the value of benefits. This is a probable scenario
change based on actual occurrences in the past.
Scenario 4: The present concessional interest rate
of 6 percent for loans to install a concrete dome
biogas system is discontinued and the market interest
rate of 9 percent for other loans is increased by
approximately 3 percent.
Scenario 5: A 20 percent increase in operating and
maintenance costs and rent.
For all the waste disposal methods, the core investment
is the initial installation costs and the opportunity
cost of land (rent), which represents about 62
percent of the total investment. The operating and
maintenance costs make up the remaining 38 percent.
7.4.3. “Best case” versus “worst case”. From a
private financial perspective, the results in Table 7
clearly show that the “best case” is if the farmers
sell the surplus electricity to EGAT as this provides
the highest NPVs of 760 baht per tonne of pig waste
for the concrete dome method and 681 baht per
tonne of pig waste for the covered lagoon method.
In the next best scenario, i.e., the conversion to biogas
with the adoption of an evaporation system on the
farm, the NPV of the concrete dome method is 198
baht per tonne of pig waste while the NPV of the covered
lagoon option is slightly lower at 191 baht per
tonne. However, the evaporation system increased the
NPVs of the covered lagoon and mixed methods.
For the “worst case” scenario, Table 7 shows that
the NPVs per tonne of pig waste under the biogas
methods are lower than for the other methods except
for the deep pond option. The NPVs per tonne of
pig waste for all methods of pig waste disposal decrease
slightly compared to the base case. A subsidy
appears only slightly significant to the CBAs of the
concrete dome and mixed methods. Without the
subsidy, the NPV per tonne of pig waste used in
7.4.2 . The “worst case” scenario. Five scenarios, as
listed below, were simulated to find the “worst case”.
Scenario 1: No subsidy from the government for
the concrete dome biogas system.
Currently, there is no government subsidy for the
covered lagoon system, only for the concrete dome
system.
Scenario 2: A 20 percent increase in operating and
maintenance costs, and a market interest rate increase
of 3 percent.
Scenario 3: A 20 percent decrease in benefits derived
from each method.
Risk factors, for example, sickness in pigs or the fish
in the ponds and fluctuations in the prices of the secondary
products sold like fertilizer and fish can reduce
the value of benefits. This is a probable scenario
change based on actual occurrences in the past.
Scenario 4: The present concessional interest rate
of 6 percent for loans to install a concrete dome
biogas system is discontinued and the market interest
rate of 9 percent for other loans is increased by
approximately 3 percent.
Scenario 5: A 20 percent increase in operating and
maintenance costs and rent.
For all the waste disposal methods, the core investment
is the initial installation costs and the opportunity
cost of land (rent), which represents about 62
percent of the total investment. The operating and
maintenance costs make up the remaining 38 percent.
7.4.3. “Best case” versus “worst case”. From a
private financial perspective, the results in Table 7
clearly show that the “best case” is if the farmers
sell the surplus electricity to EGAT as this provides
the highest NPVs of 760 baht per tonne of pig waste
for the concrete dome method and 681 baht per
tonne of pig waste for the covered lagoon method.
In the next best scenario, i.e., the conversion to biogas
with the adoption of an evaporation system on the
farm, the NPV of the concrete dome method is 198
baht per tonne of pig waste while the NPV of the covered
lagoon option is slightly lower at 191 baht per
tonne. However, the evaporation system increased the
NPVs of the covered lagoon and mixed methods.
For the “worst case” scenario, Table 7 shows that
the NPVs per tonne of pig waste under the biogas
methods are lower than for the other methods except
for the deep pond option. The NPVs per tonne of
pig waste for all methods of pig waste disposal decrease
slightly compared to the base case. A subsidy
appears only slightly significant to the CBAs of the
concrete dome and mixed methods. Without the
subsidy, the NPV per tonne of pig waste used in
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