ECONOMIC ANALYSIS OF WOOD ENERGY SYSTEMS
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The growing interest in woodfuels as an environmentally friendly source of energy is leading to an increased number of initiatives and projects in this field. In fact, EU countries expect to reduce their CO2 emissions by 2010 by 15 percent from the 1990 level. One important contribution to this reduction is expected to come from the utilization of wood fuels. This implies that production, trade and use of woodfuels (and other woody biomass) will increase substantially in the coming years and pla y a leading role in the national energy mix. Already, in several developed countries, such as USA and Canada and in Northern and Central Europe, demand for woodfuels for heating and power generation is increasing rapidly. The countries involved are also developing market structures to accommodate this. However, for many other countries there remain several aspects influencing the implementation of wood energy systems which need to be investigated. Some concern economic and financial aspect s, especially their competitiveness against other energy options. These latter needs to be clarified, particularly given the present circumstances of rising oil prices.