Project Due Diligence is one of the activity of Business Development and Valuation, which involves various risk assessment. Municipal Solid Waste (MSW) Management is very important and can be used for electricity generation.
Business development and valuation is a crucial task which is required during execution of any project or before investing in a project. Project due diligence is one of the activity of Business valuation, which involves various detailed analysis of the project to ensure whether it is worthwhile to invest in the project.
Every project needs to be assessed on various risks like institutional risk, financial risk, technical risk, risk against natural disasters and climatic factors, political uncertainties, legal risk, sustainability risk, market risk, social and gender risk, knowledge management risk, etc. The risk assessment is applicable irrespective of the size and context, whether it is an individual energy generation project or a country level development program. The level of risks also needs to be evaluated. Existing commitments and activities of the stakeholders on way forward will help evaluate and assess the risk level.
Municipal solid waste management is a big nightmare in the developing countries. In 1990s, not enough attention was given for the management of MSW in the developing countries. Only in early 2000s, there was increased awareness and the countries started paying much more attention to the management of MSW. They introduced several concepts like source separation of MSW in order to segregate biodegradable wastes from the others and carry out engineered landfill of the remaining wastes. The segregated biodegradable wastes are collected and transferred to the MSW biogas power plants to generate electricity.
These kinds of projects started emerging only after early 2000s in the developing countries due to increasing environment concerns of MSW disposal and due to Kyoto Protocol. The countries started allocating more funding for the management of MSW. Engineered landfill options were introduced to effectively create and manage new landfill sits. In the existing landfill sites, utilization of landfill gas to generate electricity were demonstrated. Tests were carried out by drilling holes to identify the potential of extracting and producing electricity using the landfill gas. A number of such project initiatives took place in Southeast Asia after Kyoto Protocol.