Techno-Economic Assessment of Incineration-Based Waste-to-Energy Systems: Global Perspectives and a Case Study of Dhaka, Bangladesh

This study evaluates the feasibility of a municipal solid waste (MSW) incineration-based power generation system in Dhaka, Bangladesh, addressing critical issues of waste management and energy deficits driven by rapid urbanization, high moisture content of waste, inadequate segregation practices, and infrastructural limitations . A 10 MW waste-to-energy (WTE) facility operating at 22.5% efficiency was analyzed using key economic metrics, including Net Present Value (NPV), Payback Period, Internal Rate of Return (IRR), Modified Internal Rate of Return (MIRR), Levelized Cost of Energy (LCOE), and Levelized Cost of Waste (LCOW). The analysis reveals an NPV of $4.99 million, an IRR exceeding 10%, and a payback period of 11.06 years, indicating conditional economic viability under supportive policy and tariff frameworks . However, the calculated LCOE of $0.1298 USD/kWh exceeds the current electricity tariff in Bangladesh, highlighting financial constraints that necessitate regulatory incentives, preferential financing mechanisms, or feed-in tariff adjustments. Additionally, the plant is projected to reduce annual CO 2 emissions by 0.045 million tons and decrease landfill volume by approximately 80% , contributing to environmental sustainability. Despite the technological maturity of incineration systems globally, implementation challenges remain, including high capital investment, emission control compliance requirements, and regulatory uncertainty. From a forward-looking perspective, integrating WTE within Bangladesh’s broader renewable energy strategy—supported by public–private partnerships and carbon credit mechanisms—could enhance long-term economic resilience and environmental performance. The findings demonstrate that waste-to-energy technology offers a viable solution for mitigating urban waste challenges while enhancing energy security, providing a sustainable pathway for Dhaka’s development and a scalable model for rapidly urbanizing cities in developing economies .