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Impact of the new electricity remuneration scheme on the waste-to-energy recovery activity in Portugal
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Advisor(s)
Abstract(s)
The remuneration scheme for the electricity produced by Waste-to-Energy (WtE) recovery plants has changed recently in Portugal according to 2020 legislation. The new model, linking the electricity remuneration from WtE plants to the spot electricity prices, is expected to bring greater uncertainty in the waste activity, which is a novelty for the sector. In Portugal, Valorsul is the municipal waste treatment entity responsible for the recovery and treatment of municipal solid waste (MSW) produced in 19 municipalities in the Lisbon area. This paper highlights the impact of the new Portuguese electricity remuneration scheme for electricity from waste on Valorsul’s WtE plant. For this purpose, the new remuneration scheme is modeled and simulated based on electricity spot market price scenarios, which are compared with the base case scenario of the former remuneration scheme. Considering different electricity prices for the electricity produced by the WtE plant, the present study anticipates the consequences of the gate-fee of such regulatory changes. Results show that any price changes in the electricity remuneration scheme are offset by equivalent changes in the waste gate-fee. Consequently, the change in the remuneration of the electricity from the WtE plant is, in fact, neutral for the Valorsul accounts and lower revenues from the electricity generation activity of the WtE will negatively impact the gate-fee prices paid by the waste users.
Description
Keywords
Waste-to-energy recovery plant Remuneration scheme Gate-fee Waste and energy regulation Electricity market
Citation
Silva, M., Lagarto, J., Mil-Homens, F., Viveiros, C., & Barata, F. (2023). Impact of the new electricity remuneration scheme on the waste-to-energy recovery activity in Portugal. Energies, 16(18), 1-18. https://doi.org/10.3390/en16186624
Publisher
MDPI