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Regulations and Incentives Vital to Increase Power Generation from Municipal Solid Waste in Brazil, Finds Frost & Sullivan

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-- Government stimulus and investments by national and international entities are crucial for sustainable market growth

SAO PAULO, Feb. 5, 2013 /PRNewswire/ -- Brazil's economic development and environmental awareness have created a favorable scenario for the generation of power from municipal solid waste. Technological advancements over the next few years, government regulations and benefits such as distribution tariff discounts will ensure better profitability for utilities generating power from solid waste.

New analysis from Frost & Sullivan's (http://www.energy.frost.com), Analysis of the Brazilian Power Generation from Municipal Solid Waste Market, finds that market earned revenues of more than $61.0 million in 2012 and estimates this to reach $189.2 million in 2016. The research covers two energy production processes: biogas combustion and incineration.

"Government proposals to reduce taxes and offer research incentives will attract investments to the market and encourage utilities to employ solid waste power generation," said Frost & Sullivan Energy & Power Systems Research Analyst Paulo Zani. "Various national policies for solid residue management will create a positive economic environment for the implementation of biogas and incineration in power plants, ensuring market expansion."

While the biogas usage will decrease, incineration technology will grow significantly once government incentives take effect. Incentives are crucial for market growth, as the high costs of both technologies dissuade investors from funding these projects.

Currently, Government incentives remain aimed at other renewable types of energy that are more competitively priced. As a result, Brazilian municipalities consider incineration and biogas plants for just waste disposal, limiting its scope for solid waste power generation. Customers also prefer the less expensive hydro, biomass, or wind energies to energy generated from waste.

"Companies must develop efficient, cost-effective technologies to stay competitive within the renewable sector," noted Zani. "They need to showcase the benefits of both waste management and solid waste energy generation to gain government attention and additional funding."

In the long term, generating energy from waste will prove to be a sound investment, as environmental factors will drive the development of innovative solutions and technologies.

If you are interested in more information on this research, please send an email to Francesca Valente, Corporate Communications, at francesca.valente@frost.com, with your full name, company name, job title, telephone number, company email address, company website, city, state and country.

Analysis of the Brazilian Power Generation from Municipal Solid Waste Market is part of the Energy & Power Growth Partnership Service program. Frost & Sullivan's related research services include: Asia-Pacific Gas Turbines Market, East African Oil and Gas Market, Global Solar Power Market, and Mexican Solar Power Market. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan

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Analysis of the Brazilian Power Generation from Municipal Solid Waste Market

NB5D-14

Contact:
Francesca Valente
Corporate Communications - Latin America
P: +54-11-4777-5300
F: +54-11-4777-5300
E: francesca.valente@frost.com

http://www.frost.com

SOURCE Frost & Sullivan



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