Prospects for the Waste-to-Energy Industry in China
Reliable and effective policy is regarded as the solid foundation of MSW conversion to energy. China’s government has given special support to the development of renewable energy.
According to the “Twelfth Five-Year Plan” of the national MSW harmless disposal facilities, the investment in WTE(Waste to Energy) incineration is about 12.3 billion dollars, which accounts for 56% of the total investment. Stimulated by the national plan of waste management, WTE incineration projects are planned in more provinces.
In terms of its funding policy for large environmental protection projects, the state generally requires that investors contribute 30% of the capital investment required for a project, the remainder of which can be raised by national subsidies or commercial bank loans. Further, according to the Ministry of Finance and State Administration of Taxation, WTE incineration plants are exempted from 5% of the income tax. The power supply authority will sign a grid-connection agreement with a WTE incineration plant that meets grid-connection conditions, and the authority will give priority to purchasing approved, on-grid energy, from the plant. According to the Development and Reform Commission, the purchase price can be offset by the feed-in tariff of 0.04 USD/kWh. In addition,
local governments will subsidize WTE incineration, with subsidy standards from 9.3 dollars/ton to14.3 dollars/ton. WTE incineration plants that rely on tariff revenue can basically break even.Waste disposal fee subsidies granted by the local government become the corporate profits.
MSW incineration is a technology intensive industry, which also demands advanced technologies.Technology policies for China’s WTE incineration industry are mainly focused on technical specifications and technical support. MSW incineration plants constructed using advanced environmental technologies can effectively protect the environment and achieve the comprehensive utilization of resources. They have great significance for the economic development of cities and, consequently, are supported by national industrial policy, which provides an important guarantee for the further rapid development of waste incineration projects in the future.