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| Summary site information collated from a variety of sources including: Monksleigh<ref name="monk" />, Tolvik<ref name="tolv" />, [[EA]], [[SEPA]], [[NRW]], [[DEFRA]], [[BEIS]] and owner and developer websites</small> | | Summary site information collated from a variety of sources including: Monksleigh<ref name="monk" />, Tolvik<ref name="tolv" />, [[EA]], [[SEPA]], [[NRW]], [[DEFRA]], [[BEIS]] and owner and developer websites</small> |
| <br clear=all /> | | <br clear=all /> |
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| ==Income Economics (Overview)==
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| The income for an EFW facility is secured from the following main sources:
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| # [[Gate Fee]] - secured via a [[Fuel Supply Agreement]] or [[FSA]]
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| # Electrical power exported - secured via a [[Power Purchase Agreement]] or [[PPA]]
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| # Any subsidies for renewable power generation (primarily [[CFD]] or [[ROC]] for electrical power and [[RHI]] for heat)
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| # Heat/steam exported (if [[CHP]]/relevant)
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| # [[PRN]] (if a registered [[R1]] facility)
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| ==Gate Fees==
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| [[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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| {| class="wikitable"
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| |+ style="caption-side:bottom;" | Summary of the UK [[ERF]] Gate Fees reported by Local Authorities, 2018 £/tonne (Table 5)<ref name="WRAP 2019" />
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| |-
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| ! 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
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| | All || All || £89 || £85 - £90 || £44 - £125 || 68
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| | Pre-year 2000 || All responses || £65 || £65 - £70 || £44 - £89 || 20
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| |-
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| | Pre-year 2000 || With contracts || £66 || £65 - £70 || £44 - £89 || 16
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| |-
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| | Pre-year 2000 || Without contracts || £54 || £45 - £50 || £47 - £81 || 4
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| |-
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| | Post-year 2000 || All responses || £93 || £85 - £90 || £50 - £121 || 45
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| |-
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| | Post-year 2000 || With contracts || £92 || £85 - £90 || £50 - £121 || 42
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| |-
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| | Post-year 2000 || Without contracts || £93 || £90 - £95 || £92 - £110 || 3
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| |}
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| [[File:WRAP EFW Gate Fee Graphs.png|1200px|left|Source - WRAP Gate Fee Report 2019 - Tables 10 and 11]]__TOC__
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| <br clear='left'/>
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| {| class="wikitable"
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| |+ 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)''
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| ! Influencing Factor !! Number of Responses (2018) !! % (2018) !! Number of Responses (Future) !! % (Future)
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| | Inflation (RPI, RPIX) || 40 || 63%||30||46%
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| |-
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| | Availability of capacity ''(i.e. supply/demand)'' || 32 || 51%||35||54%
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| |-
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| | Operating costs || 28 || 44%||25||38%
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| | Competition between similar facilities ''(also a supply/demand issue)'' || 16 || 25%||25||38%
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| |-
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| | Legislative requirements ''(i.e. changes to [[BAT]])'' || 16 || 25%||28||43%
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| |-
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| | Contractual changes, other than inflation increase || 15 || 24%||7||11%
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| | Investment/capital costs ''(i.e. new plants vs older plants with capital repaid/refinanced)'' || 15 || 24%||11||17%
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| | Other || 12 || 19%||8||12%
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| | Cost of landfilling residues ''(i.e. disposal of ash not recycled)'' || 10 || 16%||7||11%
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| |-
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| | Product/commodity end market prices ''(i.e. value of electricity)'' || 10 || 16%||10||15%
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| | Competition from alternative treatment options || 8 || 13%||16||25%
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| | Competition from foreign incinerators/[[ERF]] || 5 || 8%||4||6%
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| | Government incentive schemes e.g. renewables ''(i.e. [[CFD]])'' || 4 || 6%||8||12%
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| |-
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| | Quality of input materials ''(i.e. fuel/waste specification)'' || 3 || 5%||8||12%
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| |-
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| | Cost of recycling residues ''(i.e. metals from bottom ash)'' || 2 || 3%||5||8%
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| |}
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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).
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| ==Electrical Power Income==
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| 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>:
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| [[File:Chart of baseload price.png|600px|left|Ofgem Baseload Electricity Price - Day Ahead Monthly Average]]__TOC__
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| <br clear='left'/>
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| ==References== | | ==References== |
| <references /> | | <references /> |
