60 WtE plants in China were shut down for more than 5 months in 2024
The number of startups and shutdowns determines the life or death of a garbage clean power generation project. The more shutdowns, the greater the losses, and in severe cases, it may be shut down or bankrupt; Less shutdowns, more profits, and thriving corporate efficiency, worthy of the favor of more investors.
According to the big data of the automatic monitoring data disclosure platform of the Ministry of Ecology and Environment for domestic waste incineration power plants, the overall non-stop and waste shortage phenomenon of waste incineration enterprises has improved. The number and proportion of projects with a shutdown rate of less than 30 days are higher than the previous round of data statistics.
There are 1007 clean incineration power generation projects nationwide, of which 64 projects will have a shutdown time ranging from 41.64% to 99.18% in 2024. Among them, 60 projects will have an average shutdown time of more than five months or more, indicating a serious shortage of waste. There are some high potential projects in provincial capital cities among them.
The main reasons for the long-term shutdown of the project are:
The lack of talent also leads to a lack of management, which results in continuous non-stop failures. Among them, the shutdown caused by coking and ash accumulation in the incinerator, as well as pipe valve leakage caused by thermal corrosion, are the main factors leading to non-stop events in waste incineration projects due to the lack of necessary maintenance. In addition, there are also some key equipment failures, such as primary fan and induced draft fan failures, which are caused by long-term high load operation and insufficient maintenance, resulting in shutdown.
The composition of garbage is complex: Currently, China still has insufficient garbage classification, uneven classification of dry and wet garbage, and mixed urban-rural garbage. The garbage stored in the furnace is complex, with uneven calorific value and ever-changing composition, resulting in fluctuations in furnace temperature and combustion efficiency, large fluctuations in flue gas emission concentration, and exacerbating equipment wear and tear.
Insufficient garbage volume: In many places, the initial reserved inventory for project construction design is too large, and the expectations for local economic development are too high. The actual population growth in the area does not meet expectations, and the garbage volume has not reached the design capacity for a long time. This is the main reason for the shutdown of most new projects launched in China after 2020.
Policy and regulatory pressure: After the installation of Shulian in 2020, the Ministry of Ecology and Environment launched a big data direct management based on instantaneous values for all garbage incineration projects nationwide. If the project's flue gas emissions exceed the standard and the furnace temperature is below 850 degrees, it will trigger forced shutdown, which is also the main reason for frequent shutdown of some enterprises with low operation and maintenance level. Frequent shutdowns can also force local urban management and environmental sanitation departments to adjust their garbage distribution plans, shifting more garbage to projects with more normal processing rhythms. This also exacerbates the problems of insufficient garbage and shutdowns in projects with lower operation and maintenance levels.
Financial pressure: After 2023, the cancellation of central subsidies for new projects and delays in local financial payments have led to tight cash flow for enterprises, reduced operation and maintenance investment, and continuous upgrading and renovation work in some provinces and cities, resulting in some enterprises being forced to limit production or even report shutdowns due to lagging technological upgrades.