Greentech Lead Africa: Municipal waste to energy
initiatives in South Africa can improve electricity security in the country,
according to a new analysis from Frost & Sullivan.
Current volumes of municipal waste to energy stand at
6.5-10 MW in 2011. The market is set to increase as initiatives from South
African metropolitan municipalities come online.
Municipal waste to energy initiatives in South Africa are
in a nascent phase currently, as finance of these projects is a major
challenge. While private sector involvement in various stages of the
supply chain is possible, such involvement should be objectively evaluated,
according to the report called Municipal Waste to Energy.
Currently, 95 percent of South Africa’s waste is
disposed of in landfill sites. The dependence on landfills has limited the
incentive to devise alternative methods of dealing with waste. Typically, new
landfill sites are situated in remote locations, resulting in increased
transport costs. This directly affects the rates and taxes paid by urban
inhabitants.
Rather than exploring new landfill sites, the managing of
existing sites and generating energy as a by-product is often a more feasible
approach, says Frost & Sullivan’s Energy and Power team
leader Johan Muller. “This statement is however dependent on various
financial indicators, such as the rising cost of electricity from Eskom.”
Although the generation of energy from municipal waste is
not the core objective (as is the minimization of waste), the additional supply
of electricity to the national grid (or used privately on-site to) is a welcome
relief to the South African electricity demand issues.
Though the energy from landfills will not meet the energy
needs of the country, energy from municipal solid waste can supplement the
pending electricity shortage, and it would be wise for municipalities and Eskom
to work hand in hand towards optimal goals, also keeping in mind the role that
private parties can play.
Various metropolitan municipalities are either currently
generating, or very close to generating electricity. Those not yet generating
are waiting on results from financial and technological feasibility studies.
However, municipal budgets are not limitless, and often the huge capital
expenses required to convert landfill sites to waste to energy generating sites
are a major restraint.
Frost & Sullivan predicts that depending on the
outcome of the financing options, as concluded at COP17, the current
growth rate of municipal waste to energy initiatives will continue at a rate
equal to the availability of financing. Should the price of coal-based
electricity continue to rise, it can drive further interest into municipal
waste to energy projects, especially by the private sector.