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In the resulting analysis feedstock costs are again a dominant factor. Applying a co-substrate with a lower value could help reduce the costs but using a source of lower quality could also reduce the process efficiency. The average overall cost of heat could change from €15 /GJ in 2005 to €14 /GJ in 2030 (ranging from €6 to 31 /GJ). A6. Biomass municipal solid waste-to-energy By using municipal solid waste (MSW) as feedstock for a waste-to-energy (WTE) process, the waste stream can be reduced in volume and the waste disposed. The thermal energy that is released during combustion can be used as direct heat or converted to electricity using a steam turbine. Only the fraction derived from biogenic materials can be considered renewable. Important issue remains to reduce, recycle and re-use waste material streams as much as possible, and to prevent the emission of polluting substances. An alternative route for MSW is to dispose of it in a landfill site. Anaerobic digestion occurs naturally over time to produce methane biogas that can be used for energy purposes, usually for power generation, so landfill gas is not considered here. Table A7 Cost parameters for a modern waste-to-energy facility for incineration of municipal solid waste in 2005 (excluding VAT) with projections out to 2030* Data for base year 2005 Extrapolation to 2030 Minimum Average Maximum Unit Investment cost 2 000 4 000 7 000 2005€/kWth -10% Share investment cost for heating 15% 20% 35% % 0% Conversion efficiency 20% 30% 40% % 10% Fuel cost 0 0 0 2005€/GJ 0% O&M 80 150 300 2005€/kWth/yr 0% Full load hours heating 7 000 7 500 8 000 hrs/yr 0% Lifetime 10 15 20 yr +20% Interest rate 5 10 15 %/yr +10% Investment heat-related 700 Annuity 8.0% Annual investment payment 56.2 Annual auxiliary energy cost 0 Annual O&M cost (heat share only) 12 Fuel input 63 800 1 050 13.1% 19.9% 105.2 209.2 0 0 30 105 90 144 2005€/kWth %/yr 2005€/kWth/yr 2005€/kWth/yr 2005€/kWth/yr GJinput/kWth/yr 129 Total energy cost - investment 2 4 8 2005€/GJ -15% to -11% - fuel 0 0 0 2005€/GJ 0% - auxiliary energy 0 0 0 2005€/GJ 0% - O&M 0 1 4 2005€/GJ 0% Total 2 5 12 2005€/GJ -12% to -8% *Covers worldwide systems for the base year 2005, and projected relative differences by 2030. Neither a reference system nor avoided costs due to fuel savings are incorporated. Installation costs are included but heat distribution costs and costs allocated to electricity generation are not. The current situation for waste disposal differs from country to country. Where landfills are common practice, a new reference situation could be to construct an advanced WTE installation. Where Output data Intermediate results Input dataPDF Image | RENEWABLES FOR HEATING AND COOLING
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