Technical and economic analysis

Technical and Economic Analysis of Energy Generation from Waste Incineration in Mexico

Introduction

The growing demand for renewable energy and the need for efficient waste management solutions have driven interest in Waste-to-Energy (WTE) technologies. This study evaluates the feasibility of generating energy through the incineration of waste in Mexico, considering technical and economic aspects. The analysis explores energy potential, economic metrics, and conditions under which such projects could be viable.

Population-Based Waste Generation Analysis

Mexico’s population was divided into six size classes, each corresponding to specific waste generation indices. This segmentation provided a structured approach to estimate the energy potential:

• Small Populations (Up to 3 Million)
  • Energy Generation: 58.9 MW
  • Contribution to National Demand: 4.3%
• Overall Waste Contribution
  • Total Energy: 11,681.64 GWh

This stratified approach helps identify regions with the highest potential for WTE projects, emphasizing the scalability of incineration plants.

Key Economic Metrics

Economic feasibility was assessed using three primary indicators:

1. Levelized Cost of Energy (LCOE)

   • LCOE values were higher than other energy sources, indicating challenges in cost competitiveness.

2. Net Present Value (NPV)

   • Negative NPV values for smaller population sizes highlighted financial risks in less populated areas.

3. Internal Rate of Return (IRR)

   • IRR values similarly showed challenges, particularly in regions with limited waste generation.

These results suggest that without strategic adjustments, smaller-scale projects face significant economic barriers.

Sensitivity Analysis: Enhancing Feasibility

A sensitivity analysis was conducted to identify conditions under which WTE projects could become economically viable. The following factors were evaluated:

• Investment Costs

  • Reducing upfront investment significantly improved economic indicators.

• Operations and Maintenance (O&M) Costs

  • Lower O&M expenses increased project attractiveness.

• Sales Tariff Adjustments

  • Higher energy tariffs improved revenue streams, making projects more competitive.

This analysis underscores the importance of optimizing these variables to enhance the feasibility of WTE initiatives.

Benefits of WTE Incineration

Implementing WTE projects in Mexico offers dual advantages:

1. Strengthening the Renewable Energy Sector

   • Contribution to national energy demand (4.3%)
   • Diversification of energy sources, reducing dependency on fossil fuels.

2. Improved Waste Management

   • Significant reduction in landfill usage.
   • Enhanced waste processing efficiency, reducing environmental pollution.

Conclusion

The technical and economic analysis of waste incineration in Mexico highlights its potential to contribute meaningfully to renewable energy generation and waste management. While economic challenges exist, targeted adjustments in investment, O&M costs, and sales tariffs can make these projects viable. This research provides a pathway for policymakers and stakeholders to leverage WTE technologies, fostering sustainable development in Mexico.

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