WtE power plant operation on the energy market under the influence of legislation changes
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In this paper, the feasibility of combined heat and power waste-to-energy plant is investigated in the conditions of implementation of the new legal framework for waste disposal and management as well as new power market conditions. As waste management is a core issue of sustainable development of regions, especially urban and metropolitan areas, as well as a need for sustainable energy supply, these two energy flows logically come together in the facility for heat and power production by waste incineration. However, when new legislation guidelines are implemented, quantity and quality of municipal solid waste as fuel changes, which has a great influence on the operation of waste-to-energy based systems. While there is a lot of fuel in the first years of operation, the feasibility of facilities may come in jeopardy with further development of waste management system. This paper investigates gradual compensation of decreasing municipal solid waste production by introducing new fuels such as woody biomass from the industry, agriculture and energy crops. Scenarios are developed to offer an assessment of the rate of waste replacement with biomass from the surrounding area, taking into account various types of fuel mix with inherent lower heating value changes and sustainability of fuel transport to the plant gate. Due to legislative changes facility needs to achieve profitability within the energy market and conditions of market trade of energy. Results of the economic analysis show that decreasing waste quantities compensation with woody biomass can increase the feasibility of such projects. In the case of meeting legislation goals by source separation, such compensation increases the profitability of already profitable project which enables reduction of gate fees by 32% for same economic results. Further interventions in the waste management system, which include the introduction of the mechanical-biological treatment facility, further reduce the profitability of these kinds of projects and make the viability of this project dependent on fuel compensation.