With the development of Chinese economy, upgrading of urbanization and changes of lifestyle, waste output keeps increasing, leading to serious environment pollution. Many cities are faced with garbage disposal problems. China has the most waste output in the world with more than 7 billion tons of untreated municipal solid waste that occupies over 3 billion square meters of land. Out of the 668 cities in China, two-thirds are surrounded by garbage. In one-fourth of the cities, garbage has to be transported to nearby rural areas, which brings about secondary pollution such as underground water contamination and stench.
The Twelfth Five Year (2011-2015) Plan of the Construction of Municipal Solid Waste Treatment Facilities issued by Chinese government states that harmless garbage disposal rate in Chinese cities will reach 90%, and that in rural areas will be 70% in 2015. Capacity of urban waste incineration facilities is expected to reach 35% of total harmless treatment capacity, of which the eastern region will surpass 48%. To achieve this goal, Chinese government launched a series of policies to encourage Waste Incineration for Power Generation projects. The national benchmark price of waste power generation was 0.65 CNY/kWh (tax included) in April 2012. The raised on-grid power tariff of waste power generation, tax preference and subsidies greatly promote the revenue and profitability of waste power generation enterprises. In addition, environmental policies in China become stricter and public awareness of environment protection increases, which both promote the development of waste power generation industry.
The waste incineration rate in China is between 15% and 20%. It is predicted to be 35% in 2015 and the national daily disposal capacity of municipal solid waste will be more than 870 thousand tons. Cities in China currently use landfill, compost and incineration as methods of garbage disposal. The former two methods are constrained by land capacity and environment protection, making incineration the best method for garbage disposal.
China is entering a golden age of Waste Incineration for Power Generation. For instance, major cities compete to establish waste incineration power plants, and enterprises spend a large amount of money on mergers and acquisitions between Waste Incineration for Power Generation businesses. It is predicted that municipal solid waste treatment capacity in China will rise from 456.9 thousand tons/day to 871.5 thousand tons/day in 2011-2015 with the CAGR of 13.8%. The waste incineration capacity will increase from 89.6 thousand tons/day to 307.2 thousand tons/day, which grows 3.4 times with the CAGR of 28%. If unit size of newly built waste incineration plant is 1,000 tons/day, 200 more waste incineration plants need to be built from 2011 to 2015.
From a regional perspective, waste incineration scales in some key areas will increase sharply. The top five regions are Chongqing, Hainan, Shanghai, Beijing and Guangxi. The planned treatment scale in 2015 will be 5-8 times larger than that of 2010. The investment budget of garbage disposal facilities will exceed CNY 200 billion from 2011 to 2015. The total investment in Waste Incineration for Power Generation projects will reach CNY 100 billion. In China, there are dozens of investors in the field of Waste Incineration for Power Generation. Active enterprises in the market are Shanghai Environmental Protection (Group) Co., Ltd., Tianjin Teda Stock Co., Ltd., Jiangsu T.Y. Environmental Protection & Energy Co., Ltd. and Chongqing Sanfeng Covanta Environmental industry Co., Ltd.
In China, the waste incineration industry chain consists of waste incinerator, equipment integration and project contracting, and waste incineration operations. In the industry chain, equipment enterprises mainly engage in the production and selling of waste incineration facilities while engineering companies mainly provide technology support and installation of facilities for operating enterprises or downstream enterprises. Investment and operating enterprises are in charge of exploitation, overall plan and operation of waste power generation projects.
Features of waste power generation industry in China include high barrier to entry, sophisticated technology, clear business model, high investment, high return, sustainability, monopoly and government driving. In the long run, enterprises will not only benefit from government investment but also gain more profit by producing renewable resource products.
The Waste Incineration for Power Generation industry is estimated to develop rapidly in the next few years. On the one hand, waste output continues to increase but the existing equipment has insufficient treatment capacity. As land cost in China increases and environmental protection pressure grows, waste incineration is expected to develop preferentially. On the other hand, the industry is favored by investors due to clear development plan and profit model. It is predicted that annual growth rate of waste power generation industry in China will be 20% in the next few years. Its industry revenue will rise from CNY 3 billion in 2010 to CNY 20 billion in 2020.
Through this report, the readers can acquire the following information:
- Development Status of Waste Incineration for Power Generation in China
- China Government Policies on Waste Incineration for Power Generation
- Status of Waste Incineration for Power Generation Industry Chain
- Favorable and Unfavorable Factors in the Development of China Waste Incineration for Power Generation Industry
- Major Waste Incineration for Power Generation Enterprises in China Market
- Prospect of China Waste Incineration for Power Generation Industry, 2014-2018
Table of Content
1 Development Status of Waste Incineration for Power Generation in China, 2011-2013
1.1 Waste Incineration for Power Generation into Rapid Development Period
1.2 Incineration is an Effective Method for Garbage Disposal
1.2.1 Quantity of Municipal Solid Waste in China
1.2.2 Environment Quality
1.2.3Waste Incineration for Power Generation
1.3 Support Policies of China Government to Waste Incineration for Power Generation
2 Profit Mode and Industry Features of Waste Power Generation in China, 2011-2013
2.1 Profit Mode
2.1.2 Clean Development Mechanism (CDM)
2.1.3 Garbage Service Fees
2.2. Natural Monopoly
2.3 Industry Chain
2.4 Competition Pattern
3 Technology Status of Waste Incineration for Power Generation in China
3.1 Waste Incineration for Power Generation Process
3.2 Technical Route of Incinerator
3.3 Smoke Purification System
4 Build-Operate-Transfer (BOT) Mode of Waste Power Generation in China
4.1 BOT Mode Accelerates Marketization of Waste Power Generation
4.1.1 BOT Mode
4.1.2 BOT Projects of Waste Power Generation
4.1.3 Right & Responsibility and Benefit
4.2 Key Operations of BOT Projects
5 Major Waste Incineration Power Plants and the Operation Status in China Market, 2011-2013
5.1 Hangzhou Jinjiang Group Co., Ltd.
5.2 China Everbright International Limited
6 Prospect of Waste Incineration for Power Generation Industry in China, 2014-2018
6.1 Factors Influencing Development
6.1.1 Driving Factors
6.1.2 Unfavorable Factors
6.2 Forecast on Market Size
6.3 Forecast on Investment Opportunities
6.4 Forecast on Competition Trend
Chart Estimation on the Output Volume of Municipal Waste in China, 2011-2015
Chart Main Treatment Methods of Household Waste in China
Chart Information about Certain CDM Projects of Waste Incineration for Power Generation in China
Chart Charging Methods and Standards of Waste Disposal Fee in Certain Cities of China
Chart Investment and Operational Features of Different Types of Waste Incineration for Power Generation Enterprises
Chart Comparison between Grate Furnace Technology and Fluidized Bed Technology
Chart Major Manufacturers of Smoke Purification Equipment in China Market
Chart Right and Responsibility of BOT Projects of Waste Power Generation
Chart Financial Analysis of BOT Projects of Waste Power Generation
Chart Operational Cash Flow Statement of BOT Projects of Waste Power Generation
Chart Estimation on the Output Volume of Municipal Waste in China, 2014-2018
Chart Waste Incineration in China, 2014-2018