There are therefore very real opportunities for power developers and utilities across Africa to develop this form of renewable energy technology. (Photo by Gallo Images / The Times / Simphiwe Nkwali) However, due to dwindling fossil fuel resources, the increasing focus on energy security, a greater awareness of the social and environmental hazards of poor waste management and an overwhelming global focus on reducing greenhouse gases, the development of WtE projects has increased significantly over the last 20-30 years. Review of Waste Strategy and Policy in New South Wales i Contents Executive … Most WtE processes produce electricity or heat directly through combustion. If you have forgotten your password, you can request a new one here. Waste to energy plants have been used to treat and dispose of a number of waste products, but primarily are used on: Over the last 10 years, there has been a number of notable developments across Africa and internationally which have combined to create a favourable climate for the development of new waste management infrastructure in the region. In addition, as compared to renewable electricity generated from wind turbines or solar CSP or PV panels, power generated from waste represents baseload capacity and is therefore a far more reliable and stable source of electricity (usually achieving availability levels of more than 70 per cent). The key problem arises from the tension between two key policy objectives of any government: reducing the overall volume of waste produced and maximising renewable energy production. Markets and policy; Events; E-Paper; WTE in China 2010-08-01 21:45:50 WTE in China The need for intelligent waste management has led to the concept of the ‘hierarchy of waste management’ that places the various means for dealing with MSW in order of environmental preference. In South Africa waste collection is just one of the services that government struggles to deliver. Electricity demand in Africa today is 700 terawatt-hours (TWh), with the North African economies and South Africa accounting for over 70% of the total. iP”w½_¿Õ$g8]Ó=*^É‘�îS5}NU�ºœ’_~¹õ†}’�_½ê÷..{sNî�àïîyº[]0²$—³â!ß.¿½õÃz³|,¶›åÙ,/.ßÁ…û§‹«ÅÅåb!#‹/Œï®Ã„&FJj%YF霂{oš$ '‹;²ûşñß„Ù=°%. We bring together lawyers of the highest calibre with the technical knowledge, industry experience and regional know-how to provide the incisive advice our clients need. Restructuring, Insolvency & Special Situations, Be careful with carveouts: Your ability to arbitrate disputed payment claims might depend on it, Ashurst advises lenders on €73m financing to fibre network operator TNG, Ashurst Spain has advised Biometagás La Galera on the contract with Enagás for the first biomethane connection to the gas grid driven by a private initiative, Ashurst advises on $516 million ADES International takeover, Natural Gas: Conventional Combustion Turbine. Whilst the social and environmental drivers for a project may seem compelling and undeniable, the same cannot always be said for the economic drivers for those projects. district heating networks, existing industrial users of heat and power or an established electricity grid system); creditworthy long-term power and/or heat offtakers (which may be public utilities or corporate offtakers with sufficient balance sheet strength); a transparent licensing and planning regime which is capable of enabling all key consents and permits to be obtained in a way which is both efficient and incapable of subsequent challenge; appropriate government authorities prepared to shoulder the political risks associated with WtE projects (which risks may be managed through a power purchase agreement, waste concession or government support agreements); and. However, concerns over energy security and a greater recognition of the environmental and social concerns associated with existing waste management systems have opened up greater opportunities for developers, banks and equipment manufacturers in the WtE space, particularly in the emerging markets. You may unsubscribe at any time. ​Scroll through these slides to access the personalised features of your Dashboard. Biofuel potential in sub-Saharan Africa offers detailed estimates of the biomass resource potential in Ghana, Mozambique, Nigeria, South Africa and Uganda. Nigeria : The Municipal Solid Waste Composting Project, Ikorodu, Nigeria, being developed by EarthCare Nigeria Limited, processing 1,500 tonnes of solid waste per day to produce a composted material. It is therefore important for investors to always consider not only the existing regulatory regime, but also to keep a close eye on policy developments. the $120 million Koshe Waste to Energy Project, Addis Ababa, Ethiopia, involving the treatment of 350,000 tonnes of waste annually to produce 50MW of energy through a controlled combustion process. In fact, the use of solid municipal waste to produce biogas and electricity dates back to the early 20th century. By signing up, you agree to receive commercial messages from us. In Europe, we have seen a range of measures employed in order to drive forward the development of WtE projects. Please try after sometime. Figures for Eastern and Southern African countries A Competitive Analysis of Energy from Waste (EfW) Operators Visiongain 's report analyses the 25 leading operators of waste-to-energy plants in the 244 million tonnes per annum global market. the Johannesburg Landfill Gas to Energy Project, involving the development of five landfill gas to energy plants, producing up to 13MW of energy; the Municipal Solid Waste Composting Project, Ikorodu, Nigeria, being developed by EarthCare Nigeria Limited, processing 1,500 tonnes of solid waste per day to produce a composted material; the biogas plant at Kumasi Abattoir, Ghana, involving the production of biogas from the treatment and disposal of animal, crop and sewage waste; the Ketu Ikosi Biogas Project, Lagos, Nigeria, being developed by Midori Environmental Solutions in conjunction with the Lagos Waste Management Authority, treating food waste as the feedstock; the Pilot Biogas Initiative, Ferlo, Senegal, involving a development of 40 bio-digesters in Ferlo, with animal waste being used as the feedstock; the Gorge Farm AD Power Plant, Naivasha, Kenya, commissioned by Tropical Power in collaboration with biogas plant manufacturer, Snow Leopard Projects GmbH, processing 500,000 tonnes of organic waste per year; and. This means that the generator of the waste is obliged to ensure that the waste is properly managed. Investors also need to be mindful of the fact that even jurisdictions with very stable investment regimes and legal systems can throw up some surprises. low or negligible levels of organised or political resistance to the development of thermal waste treatment facilities. Increased complexity of waste streams because of urbanisation and industrialisation. the imposition of landfill taxes and landfill allowance trading schemes. Apart from coal, which contributes around 59% to the total primary energy supply, South Africa gets energy locally from biomass, such as wood and dung, natural gas, hydro-power, nuclear power, solar power and wind. A virtual library of regularly posted insights and legal updates based on your selected preferences. an acceptable strategy for the disposal of all ash residue and other by-products. a greater focus on Africa by internationally recognised and experienced developers keen to develop new markets. However, in countries such as The Netherlands (which does not have the ability to landfill waste due to the prevailing geography), there has been an overwhelming need to develop alternative solutions to the disposal of solid waste, resulting in extensive reliance upon WtE technology. The Bio2watt plant outside of Johannesburg is able to create electricity by converting waste from 25,000 cows This policy is launched against the background of a massive campaign of electrification in South Africa and now the start of a process of managed liberalisation of the energy sector including the transformation of the electricity distribution sector into regional electricity distributors. greater volumes of municipal, commercial and industrial waste; and. Alternatively, they might produce a combustible fuel such as methane or methanol from the treatment of a waste product. This insight focuses on some of the developments which have been made in the management and treatment of municipal, commercial and industrial waste in some of the more developed and regulated jurisdictions around the world. Access all of the content that you have previously selected to bookmark. South Africa’s GHG emissions are among the highest in the world and its absolute carbon dioxide (CO2) emissions rank among the top twenty countries, “with emissions per capita in the region of 10 metric tons per annum.”The 2011 National Climate Change White Paper described this challenge as follows: South Africa has national and international legal obligation to reduce its emissions. industrial by-products (such as bagasse produced during sugar production); animal by-products and animal waste (e.g. By continuing to use our website, we understand that you are happy for us to do this. As government policymakers juggle climate change and other environmental concerns with security of energy supply issues, and seek to meet various self-imposed and external targets, there are likely to be some policy U-turns, leading to regulatory changes such as changes to incentive mechanisms. Read “Reimagining the Future of Power in Sub-Saharan Africa” to learn more. We use cookies to improve your experience on our website. Over the last five years, Ashurst has been involved in the development of waste to energy (WtE) projects across a number of regions, as the interest in this established sector heats up significantly across a number of developing markets. South Africa’s Carbon Tax Act, which places specific levies on greenhouse gases from fuel combustion and industrial processes and emissions, came … ; afrikaans: Suid-Afrikaanse Polisie) war die nationale Polizei in Südafrika und weitgehend von der Militärpolitik beeinflusst. Energy use and development in Africa varies widely across the continent, with some African countries exporting energy to neighbors or the global market, while others lack even basic infrastructures or systems to acquire energy. For more information on how we use cookies, or how to change your browser settings, please see our Cookie Policy. Ministerial foreword South Africa is a country endowed with abundant energy … Phone: 1300 361 967 (national parks, climate change and energy efficiency information and publications requests) Fax: (02) 9995 5999 TTY: (02) 9211 4723 Email: info@environment.nsw.gov.au Website: www.environment.nsw.gov.au DECCW 2010/1034 ISBN 978-1-74293-061-9 December 2010 Printed on recycled paper. preferably moving grate or fluidised bed); recognised and reliable equipment suppliers for the chosen technology; an appropriate security package from the EPC contractor which reflects the nature and extent of EPC risks involved in the project; and. Spittelau Energy-from-Waste Plant, Vienna, Austria . The PDF server is offline. 1.1 Status of Africa’s Energy Sector Africa’s energy sector is best understood as three distinct regions. The Bill of Rights section of the South African Constitution includes an environment clause, which states that South Africa is party t… In other less-developed jurisdictions on the other hand (e.g. At the same time, the more positive developments of industrialisation and modernisation have given rise to: Most waste to energy technology and the ability to extract energy from waste products are not new developments. For example, in the UK, which has historically had access to freely available land and plentiful supplies of coal and gas reserves, there has been little reason to divert municipal waste away from landfill and towards the development of renewable energy. a generally more stable investment climate, which has resulted in more active involvement in project financing by regional investment and development banks (notably AfDB, DBSA, Standard Bank, Nedbank, FMO, IFC, and various others including Chinese and Japanese lenders); the development of more sophisticated regional energy markets and networks, allowing for greater energy trading and transmission; continuing power shortages in most countries across the region, ensuring that any power generation (particularly the generation of renewable energy) will be welcomed and attract favourable tariffs; a current shortage of effective and modern waste infrastructure, justifying investment into the sector; the imposition of more onerous national environmental obligations under the Paris Agreement signed in April 2016 under the United Nations Framework Convention on Climate Change; increasing use of public, private partnerships (PPPs) to deliver economic and social infrastructure; and. Most of South Africa's liquid fuel requirements are imported in the form of crude oil. Sign up to receive the latest legal developments, insights and news from Ashurst. With a network spanning Asia, Australia, Europe, the Middle East and North America, we offer global reach and insight combined with the knowledge and understanding of local markets. At Ashurst, we believe innovation means only one thing: continuous and disruptive improvement in all that we do - for the benefit of our clients, our employees and our wider corporate social responsibility. Among the 420 plus WtE plants in Western Europe and 80 plus WtE plants in the United States, there are a number of large WtE facilities which have now been in operation for three to four decades. Our personal approach, technical expertise, local knowledge and global network enable us to deliver an experience that other professional service providers find hard to match. INTRODUCTION The IEA Bioenergy workshop on Waste to Energy (WtE) was held in conjunction with the IEA Bioenergy Executive Committee meeting ExCo71 in Cape Town, South Africa in May 2013. 1 The rapid growth in solid waste and the fact that there is a shortage of suitable land to dispose of waste means that South Africa is running out of space for waste disposal. As of July 2018, South Africa had a coal power generation capacity … Investors in South Africa are wearily familiar with policy inconsistency. The main challenges are: A growing population and economy, which means increased volumes of waste generated. South Africa continues to dominate coal production in Africa. Developers therefore need to look at a number of key factors on the waste supply side, before deciding in which jurisdiction to focus their attention. Having a deep understanding of our clients' industries and the challenges that they face is key to delivering excellent legal advice. For the successful development and financing of WtE projects, it is important that waste flows are maximised (not minimised) in order to fuel these facilities. Energy Accounts for South Africa, 2002 – 2006. Key ingredients of any WtE project will therefore include: Due to the inherent nature of the waste feedstock for WtE projects, and various international regulations which prevent or regulate the transnational shipment of solid waste products, securing sufficient waste feedstock for WtE projects has traditionally been a problematic area for these types of projects. In the context of WtE projects, there are a number of additional characteristics which any investor will inevitably look for, to ensure that the legal and commercial framework for these projects is attractive for both foreign investors and commercial and multilateral lenders. … For this reason, a significant amount of up- front legal, regulatory and commercial due diligence often needs to be carried out on the waste side of any WtE project in order to determine the viability and bankability of any such deal. North Africa, which is heavily dependent on oil and gas, South Africa, which depends on coal and the rest of Sub-Saharan Africa, which is largely reliant on biomass (Karekezi, 2002a). As is the case for any energy development, WtE projects are best developed where favourable or (at the very least) acceptable investment regimes prevail. a regulatory system which is supportive of the thermal treatment of waste (surprisingly, such regulatory systems may be more prevalent in developing markets than in more sophisticated markets, e.g. Our global industry teams work together to share knowledge and experience so that we can provide our clients with insightful, innovative commercial advice. In addition, it has the potential to redirect tires to retreaders in even higher volumes by making greater use of its own logistics network and IT infrastructure. The vast majority of South Africa's electricity was produced from coal, with the fuel responsible for 88% of production in 2017. As a result of those practices and trends, sanitation levels have remained low and, in the worst affected areas, this has resulted in outbreaks of disease including plague, cholera and typhoid fever in countries such as Cameroon and Côte d’Ivoire. waste disposal licensing, levy payments, etc.). Energy and electricity policy, planning and regulation in South Africa has been slow and bureaucratic, lacking visionary leadership, and marred by uncertainty. These factors are outlined below. chicken droppings); and. This is evident in the insightful material we produce and news coverage we receive. Herein lies the difficulty in project-financing WtE projects. Together, we can accelerate the progress. Material personally selected by your relationship manager for your interest. South Africa also relies on oil and gas for its energy needs, but recent gas discoveries could reduce its import needs. South Africa: The Johannesburg Landfill Gas to Energy Project, involving the development of five landfill gas to energy plants, producing up to 19 MW of energy. ¦ï=@`DR±â$mÈò0‘Ç Investors and banks will inevitably look for a legal framework which facilitates the resolution of disputes and the enforcement of any awards or decisions which arise. These measures include: The majority of these incentives and subsidies are focused on energy and heat production and the reduction of greenhouse gases. In South Africa, REDISA is already developing infrastructure for commercially and environmentally preferable treatments. the availability of green certificates (in a variety of forms); enhanced capital allowances and other tax incentives; and. We bring together lawyers of the highest calibre; progressive thinkers driven by the desire to help our clients achieve business success. In collaboration with our customers in Africa, GE is leading transformation in the power industry. For this reason, in some of the more developed jurisdictions, the focus has been on anaerobic digestion, gasification and the generation of heat (rather than electricity) from waste. Furthermore, those countries subject to the EU Landfill Directive have been forced by Europe’s regulatory regime to develop alternative uses for municipal waste, thereby driving the demand for alternative technologies. In addition to incineration, thermal treatment plants may instead involve gasification (producing a combustible gas) or pyrolysis (producing other products). Readers should take legal advice before applying it to specific issues or transactions. Yet it is the other sub-Saharan Africa countries that see the fastest growth to 2040. South Africa is the 7th largest coal producer in the world. The information provided is not intended to be a comprehensive review of all developments in the law and practice, or to cover all aspects of those referred to. We present to you this Policy and Strategy document, which we believe will serve as a solid basis for consultation on options for National Radioactive Waste Management. Ireland and the UK); an organised waste collection and regulatory regime which facilitates the centralised collection of municipal and commercial waste and discourages illegal, unregulated or ad hoc disposal (e.g. demonstrable knowledge and track record by the sponsors of project-financing infrastructure developments; a strong and experienced advisory team (with both waste and energy experience); an EPC contractor with an established track record of developing WtE projects utilising proven technology (e.g. South Africa is able to further develop and implement its national policy on climate change consistently and continues to play a leading role in the international climate negotiations. This has led to the development of poor waste management practices, particularly in slum areas, including the widespread dumping of waste in water courses and uncontrolled dump sites. This report is the South African country report to the Commission, which reports on the progress made in the implementation of Agenda 21 with regard to the review, evaluation and monitoring processes. Most significant WtE projects have therefore relied heavily on the revenue arising from its waste disposal activities, typically charged on the basis of a “gate fee” or “tipping fee” per tonne of waste. Urban growth in Africa has reflected trends across the whole of the developing world and at 3.5 per cent is the highest in the world. Waste-to-Energy Options in Muncipal Solid Waste Management - A Guide for Decision Makers in Developing and Emerging Countries outlines the different WtE technologies currently applied at the municipal level and their potential role in an integrated waste management system. 9.3 Submissions in response to the energy policy discussion document 9.4 Release of draft white paper 9.5 Submissions in response to the draft white paper 9.6 approval of the white paper on energy policy by cabinet 1. South African Government www.gov.za Let's grow South Africa together Our people are experts of law; progressive thinkers, in tune with economic, political and market conditions, driven to help to provide the clear commercial advice you need to achieve business success. The legal processes of the country should always be transparent and the rule of law and respect for the sanctity of contractual commitments should prevail. Examples of some recent WtE developments in the region include: Whilst not all of these developments are significant in size, compared to many of the European and US WtE projects, nonetheless they illustrate a growing understanding across the region of the benefits to be gained from diverting waste away from landfill and using waste feedstock as a resource to produce renewable energy. South Korea’s President Moon Jae-in has announced a turnaround in the country’s energy policy, which is now headed toward a greener future. This is usually done by “thermally treating” (or incinerating) the waste. Did you know that 90% of an estimated 59 million tonnes of general waste produced in South Africa in 2011 ended up in landfills, while only 10% was recycled? 278 GWh/annum (mainly from fuelwood and waste). This makes it very difficult in many cases to structure WtE projects with long term reliance on waste gate fees, particularly where the local economy will not allow for such gate fees to be absorbed or afforded. These factors include: In addition, the last few years have witnessed a greater emphasis on the development of infrastructure dedicated to alleviate environmental as well as health and safety concerns. DOWNLOAD WHITEPAPER The exemptions apply to waste fuels determined by the EPA to be fit-for-purpose, bona-fide energy … In the context of WtE projects developed in Western Europe, it is not uncommon for the vast majority (often over 70 per cent) of all revenues to be derived through the waste gate fee, payable by the relevant municipal authority responsible for the disposal of waste. As a result, many WtE facilities will not be affordable or bankable based entirely on the power revenues likely to be generated from the disposal of waste alone (regardless of whether the facility produces heat also). Waste management in South Africa faces numerous challenges and the NWMS provides a plan to address them. Despite declining production, falling domestic demand boosts export volumes in both scenarios. Approximately thirty five percent is sourced from coal through South Africa Coal and Oil (SASOL) and hundred and thereby to enhance the policy-oriented work within IEA Bioenergy. The problem was brought into sharp focus by the UK Government’s 2011 Waste Policy Review which stated that “we are aiming to get the most energy out of the residual waste, rather than to get the most waste into energy recovery”. White Paper on Environmental Management Policy: 05 May 1997: White Paper on Marine Fisheries Policy: 01 May 1997: Discussion Document Towards a White Paper on Integrated Pollution Control and Waste Management: 01 March 1997: Sustainable forest development in South Africa: The policy of the government of national unity energy from waste (EfW) facilities) create energy in the form of electricity and/or heat from the treatment of waste products NWMS National Waste Management Strategy NWP National Water Policy NWRS National Water Resources Strategy ODA Official Development Assistance OSD Occupational Specific Dispensation PAIA Promotion of Access to Information Act of 2000 PEP Post-Exposure Prophylaxis PEPUDA Promotion of Equality and Prevention of Unfair Discrimination Act PGDS Provincial Growth and Development … The World Bank has declared 32 of the 48 nations on the continent to be in an energy crisis. fly-tipping) of such waste; the ownership by municipal authorities of the waste stream (this is typical where the relevant municipal authorities have a statutory duty to collect and dispose of waste within the relevant region); creditworthy long-term suppliers of waste (which may comprise municipal authorities/local government or, alternatively, financially stable and technically proficient corporate entities); a significant need (on a regional or national level) for new energy generation and readily available offtakers for any new energy produced (e.g. South African energy is dominated by coal, which is plentiful and cheap, and is ranked among the lowest energy costs in the world.