National Thermal Power Corporation (NTPC) will be signing a memorandum of understanding (MoU) with Surat Municipal Corporation (SMC) to set up a Waste to Energy plant. The plant will process around 1000 tonnes of garbage.
The Waste to Energy Plant will be beneficial for all
The burden on SMC will reduce in managing the 1000 tonnes of solid waste. SMC will supply 1,000 tonnes of Refused Derived Fuel (RDF). NTPC will incinerate it to convert the waste into energy to generate electricity. SMC will prepare the RDF by segregating the combustible portion from municipal solid waste (MSW).
Typically, MSW in the Indian cities contains about 50% of combustibles and thus produces about 50% RDF of high calorific value. Modern incineration type waste to energy technology is in operation across the globe for disposal of waste. It is one of the eco-friendly methods for disposing of waste as it reduces the greenhouse effect by preventing the generation of methane from landfill site as methane has almost 21 times more greenhouse effect than carbon dioxide generated from incineration.
NTPC, in turn, will develop the waste to energy project and derive revenue from it. Its core business is in Thermal Power Plants but in recent times it is foraying into renewable energy as well. It is already facilitating Central Government’s solar energy tenders with State DISCOMs.
Gujarat Electricity Regulatory Commission (GERC) has fixed the waste to energy tariff for RDF fuel plants at INR 7.07 per unit. The tariff will be applicable to all projects commissioned before FY 21. It takes two years to install and commission a waste to energy plant. The length of applicability of order is long, therefore, these projects will not be exposed to any changes in tariff. This will, therefore, boost the investors’ confidence.
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