Increasing landfill tax: what impact is this having on the renewable energy sector?                                                                                                                                                                                                                                                                                                                          

As of 1st April 2022, landfill tax has increased from £96.70 standard rate per tonne in 2021/22, to £98.60 for 2022/23 - jumping by £1.90.

And, particularly with the adjacent steep and widely discussed rise in energy prices - affecting all industries and sectors in a variety of ways - what effect is this having on the renewable energy sector?

The highest rise in (landfill) gate fees in years

The waste management sector has been hit hard by rising costs of everything from fuel to tools & equipment, and wage increases which, it is speculated, will see (landfill) gate fees shortly rise to the highest they have been in many years; not to mention a projected increase in landfill costs of between 10 & 20% over the coming year.

Some deals to be done in EfW

It’s no secret that the rise in electricity prices has benefited a lot of Energy from Waste plants, enabling many to gain additional income.

This additional income means EfW plant gate fees are typically more flexible than those at landfill and deals are available.

What’s more, the cost of transporting waste to us here in the UK has risen and operators of EfW plants in Europe - particularly Northern Europe - are said to be the ones most affected by changing & rising costs; having to drop their gate fees to offset an increase in shipping costs.

Fortunately, though, these European EfW plants are not losing out overall thanks to the rise in electricity prices.

With so much fluctuation and uncertainty around costs associated with landfill, surely increased reliance on Energy from Waste (EfW) plants could hold the answer to more sustainable costs, now and into the future, particularly localised and smaller EfW plants?