Residual Waste EFW: Difference between revisions

Line 161:

==Gate Fees/Income Economics==

The income for an EFW facility is ~~paid~~ from the following main sources:

The income for an EFW facility is secured from the following main sources:

# [[Gate Fee]] - secured via a [[Fuel Supply Agreement]] or [[FSA]]

# Electrical power exported - secured via a [[Power Purchase Agreement]] or [[PPA]]

Line 167:

# Heat/steam exported (if [[CHP]]/relevant)

# [[PRN]] (if a registered [[R1]] facility)

[[Gate Fee]] is typically between 50 to 70% of the income received and so is a key component of the overall income to a project, and is influenced by a number of factors. [[WRAP]] publish an annual report<ref name="WRAP 2019">[https://www.wrap.org.uk/gatefees2019 WRAP Gate Fee Report 2019]</ref> on [[Gate Fee]]s for different waste facilities and the factors influencing them. The table below summarizes the gate fees reported in 2018, the following two graphs show the range of [[Gate Fee]] over time, and the table at the end shows the factors influencing [[Gate Fee]] as reported by interviews with respondents as part of the report process:

{| class="wikitable"

|+ style="caption-side:bottom;" | Summary of the UK [[ERF]] Gate Fees reported by Local Authorities, 2018 £/tonne (Table 5)<ref name="WRAP 2019" />

|-

! Type of [[ERF]] !! Responses !! Median !! Mode<ref>Mode is the gate fee range (in £5 increments) which received the most responses in the survey data.</ref> !! Range<ref>Range lists simply the range between the maximum and minimum data points in the survey data collected. </ref>!!No. of Gate Fees Reported

|-

| All || All || £89 || £85 - £90 || £44 - £125 || 68

|-

| Pre-year 2000 || All responses || £65 || £65 - £70 || £44 - £89 || 20

|-

| Pre-year 2000 || With contracts || £66 || £65 - £70 || £44 - £89 || 16

|-

| Pre-year 2000 || Without contracts || £54 || £45 - £50 || £47 - £81 || 4

|-

| Post-year 2000 || All responses || £93 || £85 - £90 || £50 - £121 || 45

|-

| Post-year 2000 || With contracts || £92 || £85 - £90 || £50 - £121 || 42

|-

| Post-year 2000 || Without contracts || £93 || £90 - £95 || £92 - £110 || 3

|}

{| class="wikitable"

|+ style="caption-side:bottom;" | Key Influencing factors of [[Gate Fee]]s in 2018 and in the future (Table 37 and Table 38 combined)<ref name="WRAP 2019" /> ''(expanded example from original tables in italics)''

|-

! Influencing Factor !! Number of Responses (2018) !! % (2018) !! Number of Responses (Future) !! % (Future)

|-

| Inflation (RPI, RPIX) || 40 || 63%||30||46%

|-

| Availability of capacity ''(i.e. supply/demand)'' || 32 || 51%||35||54%

|-

| Operating costs || 28 || 44%||25||38%

|-

| Competition between similar facilities ''(also a supply/demand issue)'' || 16 || 25%||25||38%

|-

| Legislative requirements ''(i.e. changes to [[BAT]])'' || 16 || 25%||28||43%

|-

| Contractual changes, other than inflation increase || 15 || 24%||7||11%

|-

| Investment/capital costs ''(i.e. new plants vs older plants with capital repaid/refinanced)'' || 15 || 24%||11||17%

|-

| Other || 12 || 19%||8||12%

|-

| Cost of landfilling residues ''(i.e. disposal of ash not recycled)'' || 10 || 16%||7||11%

|-

| Product/commodity end market prices ''(i.e. value of electricity)'' || 10 || 16%||10||15%

|-

| Competition from alternative treatment options || 8 || 13%||16||25%

|-

| Competition from foreign incinerators/[[ERF]] || 5 || 8%||4||6%

|-

| Government incentive schemes e.g. renewables ''(i.e. [[CFD]])'' || 4 || 6%||8||12%

|-

| Quality of input materials ''(i.e. fuel/waste specification)'' || 3 || 5%||8||12%

|-

| Cost of recycling residues ''(i.e. metals from bottom ash)'' || 2 || 3%||5||8%

|}

The [[WRAP]] report<ref name="WRAP 2019" /> focuses on local authority customers, where 71% of contracts were [[PFI]]/[[PPP]] contracts of duration of 20 years or more. The emphasis on the factors on [[Gate Fee]]s for shorter term contracts, and contracts that rely more heavily on [[Commercial and Industrial Waste]] and different types of [[Waste Derived Fuel]] will be different. The most significant issues/emphasis, if interviewed, would likely to be supply/demand at the time of committing to a contract (typically much shorter in duration) and the fuel specification/[[Waste Derived Fuel]] specification - the more processing the fuel requires to meet the [[EfW]] plant input specification, the lower the [[Gate Fee]] that can be secured (primarily as the [[Gate Fee]] has to acknowledge the additional processing cost required to meet that specification).

==References==

@@ Line 161: / Line 161: @@
 ==Gate Fees/Income Economics==
-The income for an EFW facility is paid from the following main sources:
+The income for an EFW facility is secured from the following main sources:
 # [[Gate Fee]] - secured via a [[Fuel Supply Agreement]] or [[FSA]]
 # Electrical power exported - secured via a [[Power Purchase Agreement]] or [[PPA]]
@@ Line 167: / Line 167: @@
 # Heat/steam exported (if [[CHP]]/relevant)
 # [[PRN]] (if a registered [[R1]] facility)
+[[Gate Fee]] is typically between 50 to 70% of the income received and so is a key component of the overall income to a project, and is influenced by a number of factors. [[WRAP]] publish an annual report<ref name="WRAP 2019">[https://www.wrap.org.uk/gatefees2019 WRAP Gate Fee Report 2019]</ref> on [[Gate Fee]]s for different waste facilities and the factors influencing them. The table below summarizes the gate fees reported in 2018, the following two graphs show the range of [[Gate Fee]] over time, and the table at the end shows the factors influencing [[Gate Fee]] as reported by interviews with respondents as part of the report process:
+{| class="wikitable"
+|+ style="caption-side:bottom;" | Summary of the UK [[ERF]] Gate Fees reported by Local Authorities, 2018 £/tonne (Table 5)<ref name="WRAP 2019" />
+|-
+! Type of [[ERF]] !! Responses !! Median !! Mode<ref>Mode is the gate fee range (in £5 increments) which received the most responses in the survey data.</ref> !! Range<ref>Range lists simply the range between the maximum and minimum data points in the survey data collected. </ref>!!No. of Gate Fees Reported
+|-
+| All || All || £89 || £85 - £90 || £44 - £125 || 68
+|-
+| Pre-year 2000 || All responses || £65 || £65 - £70 || £44 - £89 || 20
+|-
+| Pre-year 2000 || With contracts || £66 || £65 - £70 || £44 - £89 || 16
+|-
+| Pre-year 2000 || Without contracts || £54 || £45 - £50 || £47 - £81 || 4
+|-
+| Post-year 2000 || All responses || £93 || £85 - £90 || £50 - £121 || 45
+|-
+| Post-year 2000 || With contracts  || £92 || £85 - £90 || £50 - £121 || 42
+|-
+| Post-year 2000 || Without contracts || £93 || £90 - £95 || £92 - £110 || 3
+|}
+{| class="wikitable"
+|+ style="caption-side:bottom;" | Key Influencing factors of [[Gate Fee]]s in 2018 and in the future (Table 37 and Table 38 combined)<ref name="WRAP 2019" /> ''(expanded example from original tables in italics)''
+|-
+! Influencing Factor !! Number of Responses (2018) !! % (2018) !! Number of Responses (Future) !! % (Future)
+|-
+| Inflation (RPI, RPIX) || 40 || 63%||30||46%
+|-
+| Availability of capacity ''(i.e. supply/demand)'' || 32 || 51%||35||54%
+|-
+| Operating costs || 28 || 44%||25||38%
+|-
+| Competition between similar facilities ''(also a supply/demand issue)'' || 16 || 25%||25||38%
+|-
+| Legislative requirements ''(i.e. changes to [[BAT]])'' || 16 || 25%||28||43%
+|-
+| Contractual changes, other than inflation increase || 15 || 24%||7||11%
+|-
+| Investment/capital costs ''(i.e. new plants vs older plants with capital repaid/refinanced)'' || 15 || 24%||11||17%
+|-
+| Other || 12 || 19%||8||12%
+|-
+| Cost of landfilling residues ''(i.e. disposal of ash not recycled)'' || 10 || 16%||7||11%
+|-
+| Product/commodity end market prices ''(i.e. value of electricity)'' || 10 || 16%||10||15%
+|-
+| Competition from alternative treatment options || 8 || 13%||16||25%
+|-
+| Competition from foreign incinerators/[[ERF]] || 5 || 8%||4||6%
+|-
+| Government incentive schemes e.g. renewables ''(i.e. [[CFD]])'' || 4 || 6%||8||12%
+|-
+| Quality of input materials ''(i.e. fuel/waste specification)'' || 3 || 5%||8||12%
+|-
+| Cost of recycling residues ''(i.e. metals from bottom ash)'' || 2 || 3%||5||8%
+|}
+The [[WRAP]] report<ref name="WRAP 2019" /> focuses on local authority customers, where 71% of contracts were [[PFI]]/[[PPP]] contracts of duration of 20 years or more. The emphasis on the factors on [[Gate Fee]]s for shorter term contracts, and contracts that rely more heavily on [[Commercial and Industrial Waste]] and different types of [[Waste Derived Fuel]] will be different. The most significant issues/emphasis, if interviewed, would likely to be supply/demand at the time of committing to a contract (typically much shorter in duration) and the fuel specification/[[Waste Derived Fuel]] specification - the more processing the fuel requires to meet the [[EfW]] plant input specification, the lower the [[Gate Fee]] that can be secured (primarily as the [[Gate Fee]] has to acknowledge the additional processing cost required to meet that specification).
 ==References==
 <references />