Waste to Energy Facilities to Receive 10 Cents/kWh in China

In an effort to encourage developers China has set a price for the electricity generated at waste to energy plants that is double that paid to coal-fired power stations.

11 April 2012

In a bid to encourage development China has set a price for the electricity generated at waste to energy plants that is double that paid to coal-fired power stations, according to a report by Bloomberg.

The report said that the National Development and Reform Commission had announced that developers of waste to energy facilities will be paid 0.65 yuan (10 U.S. cents) per kWh for the power they produce.

Conversely coal-fired projects will only be eligible for 0.3 to 0.4 yuan per kWh, according to Bloomberg New Energy Finance.

As fossil fuel poor China bids to encourage renewable energy, developers of solar projects get paid a minimum of 1 yuan a kilowatt-hour, while wind developers must make do with slightly less than waste to energy with a maximum of 0.61 yuan per kWh.

China has set itself the goal of producing come 15% of its energy from non-fossil fuel sources by 2020

In addition, as part of its five year plan to 2015 the Chinese government is implimenting policies which aim to reduce CO2 emissions by as much as 17% per unit of gross domestic product.

According to the report, the rate to be paid to waste to energy facilities may raise retail prices because the government has also permitted grid companies to increase prices due to a rise in the cost of purchasing power.

"It's the first time that China has established a fixed price for waste to power plants," Jessica Ng, an analyst at New Energy Finance, said. "It will help energy companies to share the cost burden of the feedstock."

Read More

Fuelling the Asian Dragon: WtE challenges in China
Today more than 100 waste to energy plants operate in China. However, approximately 400 new facilities are planned over the next decade.Michael Nelles and Thomas Dorn explain why this will require adaptation of new technology and suitable pre-treatment.

China's Largest Landfill Gas Project Powers Up
China's largest landfill gas to energy project at the Laogang landfill site is to install seven GE Jenbacher engines, generating up to 10 MW of electricity.

Contract for 660,000 TPA Waste to Energy Project in China
China Everbright International has signed a BOT (Build Operate Transfer) agreement with Nanjing Municipal Urban Management Bureau for a 660,000 tonne per annum waste to energy incineration plant in Nanjing.


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