Financial Analysis of Selected Municipal Solid Waste Based CDM Power Generation
Projects in Thailand
According to the potential assessment of GHG emission in Thailand (1998), MSW shared
approximately 5% of net total nation GHG emission.
MSW to energy can also be an option for potential and eligible CDM. Nevertheless, it must
be assured that such projects provide real, measurable and long-term benefit to climate
change mitigation as well as achieve sustainable development.
To determine the potential options, this study proceeded in two steps. The first step uses
financial model for economic analysis of selected 30 MSW sites ranging from 50 to 166
tons/day. The sites, which yield higher avoided cost and their IRR can not meet MARR, are
not economically viable but are eligible for CDM. Subsequently, the baseline methodologies
will be evaluated to determine break-even CERs price of each site at MARR.
In the second step, those prices will be recalculated in sensitivity analysis with MARR,
electricity revenue and capacity cost.
Results indicate that only a few sites would benefit from CDM while there would be far more
projects not feasible even after taking the benefits of CDM into consideration. Since their
capacities are quite small. However, the suitable capacities for each technology are
recommended in results and analysis chapter.