Abstract

In recent years, as the main way to deal with Municipal Solid Waste (MSW), municipal solid waste incineration power generation possesses the dual positive attributes of environmental protection and energy production. In addition to effectively solving the current environmental problems of “cities besieged by garbage”, it is possible to become an important supplement of urban energy and an inevitable requirement for economic and social development. Some suggestions are put forward based on the calculation results of actual investment and operating costs of waste incineration power plants. The research results are of great reference value for timely understanding of the status quo of waste incineration power plants, formulating policies and guiding the investment and operation management of power plants.

Highlights

  • With the rapid development of the economy and the acceleration of urbanization in China, the amount of urban garbage in China has been increasing dramatically, and the problem of waste disposal has become more and more prominent[1,2,3]

  • Carrying out in-depth analysis and timely grasping of the cost composition and cost status of waste incineration power plants are of great significance for laying down relevant policies, regulations and management measures for waste incineration power generation as well as guiding the healthy and stable development of the waste incineration power generation industry

  • Sensitivity analysis is carried out with the waste disposal fee set as the target value and Internal Rate Of Return (IRR) and fixed asset investment as uncertain factors, through which the change scope of the waste disposal service fee can be determined in the cases of IRR being increased by 1% and 2%, and decreased by 1% and 2%, and fixed asset investment being increased by 5% and 10% and decreased by 5% and 10%, respectively

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Summary

Introduction

With the rapid development of the economy and the acceleration of urbanization in China, the amount of urban garbage in China has been increasing dramatically, and the problem of waste disposal has become more and more prominent[1,2,3]. Due to the large scale of construction and investment of waste incineration power plants and high operating costs, a significant requirement is imposed on the economic strength of enterprises investing and operating waste incineration power plants, as well as the level of economic development in the region[8, 9] As a consequence, it is very difficult for the current market to provide a full and reasonable competitive environment for such projects under the influence of local protectionism and the public welfare characteristics of the industry itself. The waste incineration power plants which have already been put into operation have very limited profitability and face difficulties in their operations They hope that the government will increase subsidies. Carrying out in-depth analysis and timely grasping of the cost composition and cost status of waste incineration power plants are of great significance for laying down relevant policies, regulations and management measures for waste incineration power generation as well as guiding the healthy and stable development of the waste incineration power generation industry

Cost Composition of Waste Incineration Power Generation
Investment Cost and Composition
Operating Costs and Composition
Cost Allocation Model of Waste Incineration Power Generation
Sensitivity Analysis
General Situation of Waste Incineration Power Plant
Scale of waste disposal
Taxation
Cost Calculation and Analysis
The Impact of Capital IRR on Waste Disposal Service Fees
The Impact of Initial Investment Cost on Waste Disposal Service Fees
Findings
Conclusions
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