The Indian municipal solid waste to energy market could be growing at a compound annual growth rate of 9.7% by 2013, according to a report by market analysts Frost and Sullivan.

The reports authors claim that an increase in the quantity of waste generated, coupled with the need for a proper means of waste disposal - as well as the widespread adoption of technology and better collection efficiency of municipal solid waste (MSW) - offers significant growth opportunities in the Indian market.
The report titled: Analysis of Municipal Solid Waste-to-Energy Market in India, finds that the market generated 821 MW in 2009 and estimates this to reach 1191 MW by 2013.

The study also finds that refuse-derived fuel (RDF) pelletisation has been a common practice in many plants, and it is expected to remain the preferred solution for non-biodegradable waste.

In addition a reduction in landfill capacity has compelled municipalities in India to explore other methods of waste disposal and treatment; however, the report finds that technological and commercial viability of the waste to energy projects needs to be proven.

It is also claimed that private participants in India have shown considerable interest in projects to generate power from MSW, and several of them are operational and using a diverse range of technologies - despite the lack of subsidies and support from the government and municipal authorities.

The report goes on to add that the government is expected to take note of the waste to energy solutions sooner rather than later, due to the power shortage of around 30 - 50 GW that India is currently facing. The Ministry of New and Renewable Energy (MNRE) is working toward achieving energy security by tapping renewable sources, which has made energy generation from MSW an attractive option.

“Over the years, the volatility in the prices of natural gas or fossil fuel has forced countries to start focusing on other renewable forms of energy,” says Frost & Sullivan “Apart from generating heat and electricity, waste to energy conversion helps in solving the waste disposal problem.”

Waste to energy projects enable companies to generate revenues not only from electricity production, but also from the sale of carbon credits.

The analysts explain that the biggest hurdle to success in this market is the opposition that companies are likely to face from environmental activists and non-governmental organizations. Delays in the approval of waste to energy projects also affect market profitability.

Companies can try to minimise the impact of these issues on their growth rates by selecting technologies based on the characteristics of the waste material and availability of funds.

The government must try to harness the potential of this market by providing tipping fees and subsidies to plant operators.

“Community incentives need to be offered to those organizing the collection and segregation services for waste-to-energy facilities,” notes Frost & Sullivan. “Regulatory measures to exempt levies and taxes on entities and entrepreneurs that are transporting and processing waste for energy production will also greatly bolster the market.”