Technical and economic analysis of energy generation from waste incineration in Mexico

In this paper we evaluated the feasibility of energy generation by incineration of waste in Mexico. The population of Mexico was split into six population-size classes, each one associated to a waste generation index. The total amount of waste and the lower calorific values were used to estimate the power and energy resulting from each size class. The economic feasibility was evaluated using the Levelized Cost of Energy (LCOE), Net Present Value (NPV) and Internal Rate of Return (IRR). For populations up to 3 million inhabitants the incineration of waste resulted in 58.9 MW. The total energy generation resulted in 11,681.64 GWh contributing to 4.3% of the national demand. The NPV and IRR showed negative values per lower sizes of population and the LCOE resulted in higher values than other energy sources. A sensitivity analysis was conducted, addressing specific elements of the analysis to show how the project can become economically feasible when adjusting investment, O&M and sales tariff. This research provides evidence on how the Waste-To-Energy (WTE) incineration industry is feasible in Mexico and provides significant benefits, not only by strengthening the renewable energy sector but also by significantly improving the waste management system.