Carbon Credit Benefits from MSW to Energy
Solid waste management practices release high quantities of green house gases in the atmosphere. This sector therefore creates significant opportunities for carbon mitigation, which could eventually become tradable carbon credits. Some waste to energy projects in India have already started earning carbon credits.
As of 2011, there is a total of 10 registered projects fetching about 889,358 CERs /annum (Corresponding to a revenue potential of 0.5 billion INR). Presently 32 CDM projects are under validation stage seeking for registration. These projects can generate more than 10 million CER’s/annum (Corresponding to a revenue potential of around 6 billion INR) (Data as on Feb 2011).Government Support for Sewage to Energy ProjectsProjects based on high rate biomethanation technologyFinancial assistance of Rs. 2.0 crore / MW will be provided for projects based on power generation from MSW through high rate biomethanation technology.Power generation at sewage treatment plantsFinancial assistance @ 40% of the project cost subject to a maximum of Rs 2.0 crore/MW shall be provided for projects for generation of power from biogas being produced at Sewage Treatment Plants. Project cost will include the cost of engine-genset, H2S removal plant and other related equipment.Carbon Credit Benefits of Sewage to EnergyProjects based on generation of electric power from biogas, which is being produced as a result of digestion of sludge in STPs, are eligible for CDM (Clean Development Mechanism), as it will help in reducing and stabilizing the emissions due to methane which is a green house gas. Based on the potential of biogas/power generation from STPs, expenditure on O can be offset by earning ‘carbon credits’ on recurring basis. Some sewage treatment plants in India are on the verge of getting the carbon credits for its efforts for reducing the carbon-dioxide emission in their sewage treatment plants.
* EAI assumes that 1 CER to be approximately equal to USD 15 while the claims from each of these case studies below have taken the value of 1 CER to be USD 20 – 25.
Government Support for Industrial Waste to Energy Projects
Central Financial Assistance (CFA)
Central Financial Assistance to different categories of projects would be given in the form of capital subsidy to the promoters and in the form of Grants-in-Aid for other activities, as given below.
Capital subsidy to the promotersIncentives to State Nodal Agencies
State Nodal Agencies would be provided an incentive / service charge @ 1% of MNRE subsidy restricted to Rs. 5.00 lakh per project, in order to facilitate development of projects and their monitoring during implementation / post commissioning.
Financial assistance for promotional activities
Financial assistance would be provided for organizing training courses, business meets, seminars / workshops, and publicity / awareness on case-to-case basis, subject to a maximum of Rs. 3.0 lakhs per event /activity.
Financial support to R projects
Financial support would be provided to R and Applied R projects including studies on resource assessment, technology upgradation, performance evaluation, etc. to institutions / industries. This will be governed by the procedures / guidelines being issued by the R Division of MNRE separately.
Financial support for preparation of DPR
50% of the cost of DPR preparation, limited to Rs. 1.00 lakh/project, will be reimbursed to the promoters at the time of sanction of project.
India – Waste Generation Scenario
Every year, about 55 million tonnes of municipal solid waste (MSW) and 38 billion liters of sewage are generated in the urban areas of India. In addition, large quantities of solid and liquid wastes are generated by industries. Waste generation in India is expected to increase rapidly in the future. As more people migrate to urban areas and as incomes increase, consumption levels are likely to rise, as are rates of waste generation. It is estimated that the amount of waste generated in India will increase at a per capita rate of approximately 1-1.33% annually. This has significant impacts on the amount of land that is and will be needed for disposal, economic costs of collecting and transporting waste, and the environmental consequences of increased MSW generation levels.
Types of Waste
Urban Wastes in India
The proliferation of urban waste has direct impacts on sanitation in India. With crowded cities and significant poverty, millions of people in Indian cities are directly exposed to the harmful effects of all urban waste, especially from fecal and sewage sludge from rivers and lakes. The economic costs of these harmful effects are indeed dire.