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 and Sullivan, 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 and Sullivan Energy and 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.