Financial analysis of waste-to-energy grate incineration power plant for a small city
Van Dyk, L.
De Kock, J.A.
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Grate incineration is a widely used waste-to-energy (WtE) technology, which has the potential of contributing significantly to clean energy production and sustainable waste management systems. Various research studies have shown that WtE grate incineration in developed countries has contributed to the goal of economic, social and environmentally sustainable development. The purpose of this study is to carry out a financial analysis of a WtE grate incineration power plant for a small South African city of North-West Province. Municipal solid waste (MSW) data used in this study was collected from a small municipality in North-West Province. A financial model with four different scenarios was formulated. Net present value and internal rate of return were used as financial feasibility indicators. Sensitivity analysis was performed to see how electricity price and MSW accumulation rate affected the financial feasibility of the model. The results proved that the major revenue stream of a WtE plant is electricity sales and medical waste gate fees. High capital cost is the main drawback in implementing a WtE grate incineration power plant. A WtE grate incineration power plant also makes a significant contribution to the goal of recycling. The conclusion reached is that WtE could be economically viable if medical waste is diverted to the grate incineration power plant and 150 000 tonnes to 220 000 tonnes of residual MSW is generated annually