Is Miscanthus a sustainable land-use alternative for the energy market in Portugal?

The main goal of this work was to quantify the magnitude of the potential socio-economic consequences of the production and use of energy from Miscanthus biomass, in Portugal. To determinate the socio-economic sustainability, three criteria were studied: the cost price of the energy produced, the costs of the abated emission of CO2 and the employment creation. It was assumed that Miscanthus was used as a solid fuel in a combined Heat and Power Plant. Results show that the highest share of the cost price is caused by the conversion onto energy. Results also show that without an additional remuneration for CO2 abatement or other benefits, this crop is not yet economically attractive. In terms of the costs of the abated CO2 emission, results show that the crop is not feasible without a premium for CO2 abatement. Compared to temporary set-aside, Miscanthus will contribute to the increase in employment, but, when this crop replaces tobacco there will be a small loss in employment on the farm.Keywords: Miscanthus, sustainability, socio-economic impact, economical aspects, CO2 reduction.