FULL-FLEDGED PRE-FEASIBILITY ANALYSIS

Waste to Electricity

Waste to Electricity

Market

Targeted market Generation of electricity from Municipal Solid Waste (MSW) or treated wastewater sludge to be injected on the grid.
Project description MSW and sludge produced in waste water plants in Egypt amount to 28 million tons, part of it can be used to generate electricity providing an effective positive environmental approach to get rid of waste as well as produce electricity. Electricity production avails natural gas for export hence improving Egypt trade balance. Electricity produced is injected on the grid on the MV level.
Competitive edge

Access to energy rich waste as well as existence of Feed-in-Tariff scheme backed by long term (off-take) agreement providing revenues against sales of electricity.

Market features Total possible revenue of 300 million USD annually

Financial Features - Model for MSW 

Facility capacity Can vary from 10 MW to 30 MW – Financial case provided for 30 MW (1,200 tons per day)
Investment required 125 million USD
IRR 12%

Process

Required Input Stable supply of MSW or sludge from wastewater
Technology Thermal treatment

Policy interventions

Recommendations Proper offering of concession area and minimum payment guarantees on amounts, continuity and quality needs to be provided to investors by authorities. Sovereign guarantee and USD indexing might be needed for FiT.

Impacts

Environmental impact Reduction of emissions by processing waste in a more environmentally positive way than landfill or open burning. Avoiding use of fossil fuel in power plants.
Social impact Provides direct and indirect job opportunities. Avail precious natural gas resources for export generating income to GoE in USD while also reducing cost of municipal waste processing.
* Source of the information: The above figures were updated by Chemonics Egypt for UNIDO in 2023

Studies

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