Analysis of investment incentives for power generation based on an integrated plasma gasification combined cycle power plant using municipal solid waste
Néstor D. Montiel-Bohórquez, Juan D. Saldarriaga-Loaiza, Juan F. Pérez
Abstract
Municipal solid waste (MSW) high generation rate and final disposal are major issues for societies worldwide. In Colombia, projections warn about potential sanitary emergencies by 2030 due to ∼30% of current landfill short life span (0–3 years). Thus, this work aimed to assess the techno-economic performance of an Integrated Plasma Gasification Combined Cycle power plant (IPGCC) fueled with MSW. The effects of the plasma and reactor temperatures on the IPGCC efficiency were studied. The plant reached the best thermodynamic performance (32.49% efficiency) at a low reactor temperature (2000 °C) and at high plasma temperature (5000 °C) since torch power consumption decreased. At these conditions, the IPGCC power plant, processing 900 t/day, was able to generate ∼56 MWe. In the economic assessment, several financing scenarios were considered for the calculations of the levelized cost of energy (LCOE), which is used as an economic indicator. When the investment structure included 30% green bonds and 70% bank loans, the best LCOE (9.13 ¢US$/kWh) was obtained. Furthermore, if the generation project received a reliability charge of 1.70 ¢US$/kWh, the LCOE would decrease to 7.56 ¢US$/kWh, which could be competitive in the Colombian electricity market, whose 2020 average electricity price was 7.11 ¢US$/kWh.