Residual Waste EFW: Difference between revisions
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== | ==Income Economics (Overview)== | ||
The income for an EFW facility is secured 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]] | # [[Gate Fee]] - secured via a [[Fuel Supply Agreement]] or [[FSA]] | ||
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# Heat/steam exported (if [[CHP]]/relevant) | # Heat/steam exported (if [[CHP]]/relevant) | ||
# [[PRN]] (if a registered [[R1]] facility) | # [[PRN]] (if a registered [[R1]] facility) | ||
==Gate Fees== | |||
[[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: | [[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: | ||
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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). | 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). | ||
==Electrical Power Income== | |||
Income from the export of electricity makes up the majority of the income other than [[Gate Fee]], although this can be more heavily influenced by projects with any subsidies for renewable power (i.e. [[ROC]] and [[CFD]]). The [[PPA]] comprises different elements of payment, but the principle payment is related to baseload power, the value of which fluctuates in the market. [[PPA]]s therefore are normally a balance between optimizing price per Megawatt-hour (normally as a percentage of baseload price) while managing downside risk, over the period of the contract. Hence a project with 15MWe export operating over 8,000 hours a year would have 120,000 Megawatt-hours a year at the baseload price. The variation in baseload price can be seen in the following graph from [[Ofgem]]<ref>[https://www.ofgem.gov.uk/data-portal/all-charts/policy-area/electricity-wholesale-markets: Ofgem Wholesale Electricity Charts]</ref>: | |||
[[File:Chart of baseload price.png|600px|left|Ofgem Baseload Electricity Price - Day Ahead Monthly Average]]__TOC__ | |||
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==References== | ==References== | ||
<references /> | <references /> | ||