Are gate fees holding Asia back from fully embracing Energy from Waste?                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    

Recently, we wrote about emerging UK renewable energy projects in Asia and, specifically, the huge opportunities for Energy from Waste to treat the growing waste problem in South East Asia.

But what is stopping the countries of Asia to fully embrace Energy from Waste? Could the issue be gate fees or is it much deeper than that?

Energy from Waste gate fees

Here in the UK, the gate fees associated with Energy from Waste have been a prominent talking point for the renewable energy industry over the last couple of years, increasing from £95 per tonne in 2021/22 to £103 per tonne in 2022/23.

This, compounded by the inclusion of EfW plants in the Emissions Trading Scheme UK, means gate fees could increase further in the coming years by up to £100 per tonne, potentially rising way beyond £200 per tonne of waste disposed of.

But gate fees aren’t UK specific - indeed, EfW gate fees exist at facilities across the world - in Pakistan, for example, EfW tariffs are $100 per MWh and Vietnam’s EfW tariffs are around $105 per MWh - and are simply part of the price of Energy from Waste plants; as gate fees paid by customers, such as refuse collection companies, to EfW plant operators help these EfW companies operate the facilities, and build & finance further projects.

The problem of gate fees in Asia

Gate fees pose a problem in Asia for a number of reasons.

Firstly, because the infrastructure just isn’t currently there when it comes to the ethical disposal of waste, especially in rural areas of places like The Philippines where the roads are particularly poor and all-weather access to the main transport system isn’t possible; why might someone pay to dispose of waste via EfW when, in reality, they can dump it at the side of the road for free?

What’s more, EfW plants aren’t yet as commonly found in Asia as they are in other parts of the world and therefore won’t be as widely used or known about, meaning that EfW’s many benefits may as yet remain unknown by the vast majority of people - and we know the impact public opinion tends to have on driving policy and new initiatives.

As such, to encourage Energy from Waste in Asia, government subsidies and initiatives would need to be introduced to incentivise EfW facilities as a form of waste treatment and management. For some countries in Asia, this is already starting to happen. Vietnam, for example, has introduced fiscal tax exemptions, and a guaranteed power offtake for EfW plants.

Deeper than this, though, the poor rural road networks in places like The Philippines, India and Pakistan make regular waste collection difficult and therefore would need considerable attention for regular waste collection to be possible.

In short, the answer to the ongoing question of how to solve Asia’s waste problem is Energy from Waste but so much needs to change - opinions, infrastructure and the widespread introduction of government funding, subsidies and initiatives - in order for Energy from Waste facilities to thrive in this part of the world.