The economic value of imports of combustible waste in systems with high shares of district heating and variable renewable energy

Amalia Rosa Pizarro Alonso*, Ciprian Cimpan, Maria Ljunggren Söderman, Hans V. Ravn, Marie Münster

*Corresponding author for this work

    Research output: Contribution to journalJournal articleResearchpeer-review

    Abstract

    This study analyses the socio-economic value of trade of combustible waste, taking Denmark as an example for importing countries with large district heating networks and already high shares of variable renewable energy. An integrated systems analysis framework allowed to assess under which circumstances import of wastes leads to less expensive waste management and energy, accounting for increasing ambitions for a circular economy and renewable energy. The dynamics of both systems are captured through two optimization models, which are solved simultaneously. OptiFlow optimizes Danish waste management and transport, and Balmorel, the Northern European energy system. Results show that waste import to cover the existing Danish incineration overcapacity during wintertime has definite economic value. Conversely, summertime import can have negative value unless a gate fee is received, with the exception of imports of waste with high calorific content (>16.2 GJ/t). In some cases, mothballing of up to 14% of the existing incineration plants is a cost-efficient alternative to decrease the level of over-capacity. In the longer term, results show a socio-economic value of importing waste, being mainly sensitive to assumptions regarding biomass prices and wind power cost, as the technologies would compete with incineration plants. The present methodology can be applied to other countries where waste-to-energy participates in district heating, and where variable renewable electricity and constraints on biomass resources are becoming important. A pan-regional approach regarding waste management planning to maximize the value from combustible waste might be desired, along with a coherent taxation to avoid competition based on tax differences.
    Original languageEnglish
    JournalWaste Management
    Volume79
    Pages (from-to)324-338
    ISSN0956-053X
    DOIs
    Publication statusPublished - 2018

    Keywords

    • Waste trade
    • Circular economy
    • Wate-to-energy
    • Energy systems analysis
    • Bottom-up optimization

    Cite this

    Pizarro Alonso, Amalia Rosa ; Cimpan, Ciprian ; Ljunggren Söderman, Maria ; Ravn, Hans V. ; Münster, Marie. / The economic value of imports of combustible waste in systems with high shares of district heating and variable renewable energy. In: Waste Management. 2018 ; Vol. 79. pp. 324-338.
    @article{c3685ca1076a4e1a971f223beaad9c55,
    title = "The economic value of imports of combustible waste in systems with high shares of district heating and variable renewable energy",
    abstract = "This study analyses the socio-economic value of trade of combustible waste, taking Denmark as an example for importing countries with large district heating networks and already high shares of variable renewable energy. An integrated systems analysis framework allowed to assess under which circumstances import of wastes leads to less expensive waste management and energy, accounting for increasing ambitions for a circular economy and renewable energy. The dynamics of both systems are captured through two optimization models, which are solved simultaneously. OptiFlow optimizes Danish waste management and transport, and Balmorel, the Northern European energy system. Results show that waste import to cover the existing Danish incineration overcapacity during wintertime has definite economic value. Conversely, summertime import can have negative value unless a gate fee is received, with the exception of imports of waste with high calorific content (>16.2 GJ/t). In some cases, mothballing of up to 14{\%} of the existing incineration plants is a cost-efficient alternative to decrease the level of over-capacity. In the longer term, results show a socio-economic value of importing waste, being mainly sensitive to assumptions regarding biomass prices and wind power cost, as the technologies would compete with incineration plants. The present methodology can be applied to other countries where waste-to-energy participates in district heating, and where variable renewable electricity and constraints on biomass resources are becoming important. A pan-regional approach regarding waste management planning to maximize the value from combustible waste might be desired, along with a coherent taxation to avoid competition based on tax differences.",
    keywords = "Waste trade, Circular economy, Wate-to-energy, Energy systems analysis, Bottom-up optimization",
    author = "{Pizarro Alonso}, {Amalia Rosa} and Ciprian Cimpan and {Ljunggren S{\"o}derman}, Maria and Ravn, {Hans V.} and Marie M{\"u}nster",
    year = "2018",
    doi = "10.1016/j.wasman.2018.07.031",
    language = "English",
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    pages = "324--338",
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    The economic value of imports of combustible waste in systems with high shares of district heating and variable renewable energy. / Pizarro Alonso, Amalia Rosa; Cimpan, Ciprian; Ljunggren Söderman, Maria; Ravn, Hans V.; Münster, Marie.

    In: Waste Management, Vol. 79, 2018, p. 324-338.

    Research output: Contribution to journalJournal articleResearchpeer-review

    TY - JOUR

    T1 - The economic value of imports of combustible waste in systems with high shares of district heating and variable renewable energy

    AU - Pizarro Alonso, Amalia Rosa

    AU - Cimpan, Ciprian

    AU - Ljunggren Söderman, Maria

    AU - Ravn, Hans V.

    AU - Münster, Marie

    PY - 2018

    Y1 - 2018

    N2 - This study analyses the socio-economic value of trade of combustible waste, taking Denmark as an example for importing countries with large district heating networks and already high shares of variable renewable energy. An integrated systems analysis framework allowed to assess under which circumstances import of wastes leads to less expensive waste management and energy, accounting for increasing ambitions for a circular economy and renewable energy. The dynamics of both systems are captured through two optimization models, which are solved simultaneously. OptiFlow optimizes Danish waste management and transport, and Balmorel, the Northern European energy system. Results show that waste import to cover the existing Danish incineration overcapacity during wintertime has definite economic value. Conversely, summertime import can have negative value unless a gate fee is received, with the exception of imports of waste with high calorific content (>16.2 GJ/t). In some cases, mothballing of up to 14% of the existing incineration plants is a cost-efficient alternative to decrease the level of over-capacity. In the longer term, results show a socio-economic value of importing waste, being mainly sensitive to assumptions regarding biomass prices and wind power cost, as the technologies would compete with incineration plants. The present methodology can be applied to other countries where waste-to-energy participates in district heating, and where variable renewable electricity and constraints on biomass resources are becoming important. A pan-regional approach regarding waste management planning to maximize the value from combustible waste might be desired, along with a coherent taxation to avoid competition based on tax differences.

    AB - This study analyses the socio-economic value of trade of combustible waste, taking Denmark as an example for importing countries with large district heating networks and already high shares of variable renewable energy. An integrated systems analysis framework allowed to assess under which circumstances import of wastes leads to less expensive waste management and energy, accounting for increasing ambitions for a circular economy and renewable energy. The dynamics of both systems are captured through two optimization models, which are solved simultaneously. OptiFlow optimizes Danish waste management and transport, and Balmorel, the Northern European energy system. Results show that waste import to cover the existing Danish incineration overcapacity during wintertime has definite economic value. Conversely, summertime import can have negative value unless a gate fee is received, with the exception of imports of waste with high calorific content (>16.2 GJ/t). In some cases, mothballing of up to 14% of the existing incineration plants is a cost-efficient alternative to decrease the level of over-capacity. In the longer term, results show a socio-economic value of importing waste, being mainly sensitive to assumptions regarding biomass prices and wind power cost, as the technologies would compete with incineration plants. The present methodology can be applied to other countries where waste-to-energy participates in district heating, and where variable renewable electricity and constraints on biomass resources are becoming important. A pan-regional approach regarding waste management planning to maximize the value from combustible waste might be desired, along with a coherent taxation to avoid competition based on tax differences.

    KW - Waste trade

    KW - Circular economy

    KW - Wate-to-energy

    KW - Energy systems analysis

    KW - Bottom-up optimization

    U2 - 10.1016/j.wasman.2018.07.031

    DO - 10.1016/j.wasman.2018.07.031

    M3 - Journal article

    VL - 79

    SP - 324

    EP - 338

    JO - Waste Management

    JF - Waste Management

    SN - 0956-053X

    ER -