Modelling of biomass prices for bio-energy market in the Czech Republic

The article combines theoretical approaches in economic modelling with practical application of created models for the bio-energy sector in the defined area. Design and application of economic models is discussed to predict future biomass prices from new energy crops on the developed and saturated bio-energy market. The models use minimum price methodology based on application of elementary principles of economic theory to commercial activity with undeveloped production and/or the demand side of the biomass market. The model is then tested on real economic and agronomic data from pilot and experimental biomass production and utilization projects in the Czech Republic with a case study of biomass from poplar and willow short rotation coppice (SRC) and reed canary grass plantations. Selected results of this modelling of biomass prices are presented and discussed. The economic model created proved to be a practical tool for analysis of the effectiveness and competitiveness of biomass from different energy crops on the energy market, which can be used for strategic planning on the part of state administration or decision-making of companies in the biomass sector.