Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

An analysis of the economic viability of waste-to-energy generation in the Kumasi metropolis of Ghana

An analysis of the economic viability of waste-to-energy generation in the Kumasi metropolis of... Kumasi Metropolis, the second-largest city in Ghana is known to be bewildered with challenges relating to waste management. As a means of solving the waste management challenge, several suggestions are often made for the establishment of a waste-to-energy plant to manage the disposal of waste and generation of income. There have been no studies conducted to determine how economically viable such plants will be. This study aims to examine the economic viability of waste-to-energy generation in the Kumasi Metropolis to find out how economically viable such an approach will be.Design/methodology/approachTo achieve this, a simple debt-equity ratio business model based on discounted cash flow technique was applied to estimate the internal rate of returns (IRR) as a measure of the economic viability and profitability of a modelled 50 MWH waste-energy generation plant in the Kumasi Metropolis. The analysis was performed using the RetScreen Expert Software.FindingsThe results show that the IRR and benefits cost ratio of the facility were 36% and 5.8%, respectively, indicating high levels of profitability and economic viability. The study concludes that waste-to-energy generation will be an economically viable venture in the Kumasi Metropolis.Practical implicationsIt is, however, important for users of the findings of this study to take caution of the fact that the various assumptions although based on current knowledge and expert opinion may vary with time; therefore, the sensitive analysis on price and costs should always be considered. Practically, this study will contribute to solving the waste management situation in most cities, as well as generating revenue and helping close the energy deficit most developing countries are grabbling with.Originality/valueThe unique contribution of the study to knowledge is that it has professed an alternative analytical and methodological approach to measuring the financial viability of waste-to-energy plants in situations where there is none in the geographical jurisdiction of the proposed project. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Financial Management of Property and Construction Emerald Publishing

An analysis of the economic viability of waste-to-energy generation in the Kumasi metropolis of Ghana

Loading next page...
 
/lp/emerald-publishing/an-analysis-of-the-economic-viability-of-waste-to-energy-generation-in-nBV04FEZvT

References (42)

Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
1366-4387
eISSN
1366-4387
DOI
10.1108/jfmpc-12-2019-0089
Publisher site
See Article on Publisher Site

Abstract

Kumasi Metropolis, the second-largest city in Ghana is known to be bewildered with challenges relating to waste management. As a means of solving the waste management challenge, several suggestions are often made for the establishment of a waste-to-energy plant to manage the disposal of waste and generation of income. There have been no studies conducted to determine how economically viable such plants will be. This study aims to examine the economic viability of waste-to-energy generation in the Kumasi Metropolis to find out how economically viable such an approach will be.Design/methodology/approachTo achieve this, a simple debt-equity ratio business model based on discounted cash flow technique was applied to estimate the internal rate of returns (IRR) as a measure of the economic viability and profitability of a modelled 50 MWH waste-energy generation plant in the Kumasi Metropolis. The analysis was performed using the RetScreen Expert Software.FindingsThe results show that the IRR and benefits cost ratio of the facility were 36% and 5.8%, respectively, indicating high levels of profitability and economic viability. The study concludes that waste-to-energy generation will be an economically viable venture in the Kumasi Metropolis.Practical implicationsIt is, however, important for users of the findings of this study to take caution of the fact that the various assumptions although based on current knowledge and expert opinion may vary with time; therefore, the sensitive analysis on price and costs should always be considered. Practically, this study will contribute to solving the waste management situation in most cities, as well as generating revenue and helping close the energy deficit most developing countries are grabbling with.Originality/valueThe unique contribution of the study to knowledge is that it has professed an alternative analytical and methodological approach to measuring the financial viability of waste-to-energy plants in situations where there is none in the geographical jurisdiction of the proposed project.

Journal

Journal of Financial Management of Property and ConstructionEmerald Publishing

Published: Feb 18, 2022

Keywords: Waste-to-energy; Economic viability; Debt-equity ratio; Profitability; Ghana

There are no references for this article.