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Impact of the New Electricity Remuneration Scheme on the Waste-to-Energy Recovery Activity in Portugal

Author

Listed:
  • Mário Silva

    (Electrical Engineering Energy and Automation Department (DEEEA), Instituto Superior de Engenharia de Lisboa (ISEL), Instituto Politécnico de Lisboa (IPL), Rua Conselheiro Emídio Navarro, 1, 1959-007 Lisboa, Portugal
    Valorsul—Valorização e Tratamento de Resíduos Sólidos das Regiões de Lisboa e do Oeste, Estação Mercadorias Bobadela, Plataforma Ribeirinha CP Lisboa, 2696-801 São João da Talha, Portugal)

  • João Lagarto

    (Electrical Engineering Energy and Automation Department (DEEEA), Instituto Superior de Engenharia de Lisboa (ISEL), Instituto Politécnico de Lisboa (IPL), Rua Conselheiro Emídio Navarro, 1, 1959-007 Lisboa, Portugal
    INESC-ID—Instituto de Engenharia de Sistemas e Computadores: Investigação e Desenvolvimento, Rua Alves Redol, 9, 1000-029 Lisboa, Portugal)

  • Jorge Sousa

    (Electrical Engineering Energy and Automation Department (DEEEA), Instituto Superior de Engenharia de Lisboa (ISEL), Instituto Politécnico de Lisboa (IPL), Rua Conselheiro Emídio Navarro, 1, 1959-007 Lisboa, Portugal
    INESC-ID—Instituto de Engenharia de Sistemas e Computadores: Investigação e Desenvolvimento, Rua Alves Redol, 9, 1000-029 Lisboa, Portugal)

  • Feliz Mil-Homens

    (Electrical Engineering Energy and Automation Department (DEEEA), Instituto Superior de Engenharia de Lisboa (ISEL), Instituto Politécnico de Lisboa (IPL), Rua Conselheiro Emídio Navarro, 1, 1959-007 Lisboa, Portugal)

  • Carla Viveiros

    (Electrical Engineering Energy and Automation Department (DEEEA), Instituto Superior de Engenharia de Lisboa (ISEL), Instituto Politécnico de Lisboa (IPL), Rua Conselheiro Emídio Navarro, 1, 1959-007 Lisboa, Portugal)

  • Filipe Barata

    (Electrical Engineering Energy and Automation Department (DEEEA), Instituto Superior de Engenharia de Lisboa (ISEL), Instituto Politécnico de Lisboa (IPL), Rua Conselheiro Emídio Navarro, 1, 1959-007 Lisboa, Portugal)

Abstract

The remuneration scheme for the electricity produced by Waste-to-Energy (WtE) recovery plants has changed recently in Portugal according to 2020 legislation. The new model, linking the electricity remuneration from WtE plants to the spot electricity prices, is expected to bring greater uncertainty in the waste activity, which is a novelty for the sector. In Portugal, Valorsul is the municipal waste treatment entity responsible for the recovery and treatment of municipal solid waste (MSW) produced in 19 municipalities in the Lisbon area. This paper highlights the impact of the new Portuguese electricity remuneration scheme for electricity from waste on Valorsul’s WtE plant. For this purpose, the new remuneration scheme is modeled and simulated based on electricity spot market price scenarios, which are compared with the base case scenario of the former remuneration scheme. Considering different electricity prices for the electricity produced by the WtE plant, the present study anticipates the consequences of the gate-fee of such regulatory changes. Results show that any price changes in the electricity remuneration scheme are offset by equivalent changes in the waste gate-fee. Consequently, the change in the remuneration of the electricity from the WtE plant is, in fact, neutral for the Valorsul accounts and lower revenues from the electricity generation activity of the WtE will negatively impact the gate-fee prices paid by the waste users.

Suggested Citation

  • Mário Silva & João Lagarto & Jorge Sousa & Feliz Mil-Homens & Carla Viveiros & Filipe Barata, 2023. "Impact of the New Electricity Remuneration Scheme on the Waste-to-Energy Recovery Activity in Portugal," Energies, MDPI, vol. 16(18), pages 1-18, September.
    • Handle: RePEc:gam:jeners:v:16:y:2023:i:18:p:6624-:d:1239952
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