Waste-to-Energy Growth Faces High Costs, Unclear Rules

Waste-to-Energy Growth Faces Key Barriers in Philippines

MANILA, Philippines — Waste-to-energy growth in the Philippines is gaining attention, yet high costs, unclear regulations, and limited waste supply continue to hinder progress, sources said. The four-word keyphrase waste-to-energy growth appears critical as this sector strives to transform garbage into electricity and heat.

For years, waste-to-energy projects have sparked debate among environmentalists, officials, and communities nationwide. Despite the increasing momentum, stakeholders warn that the path to wider adoption remains challenging.

Costs and Waste Supply Limit Development

In a recent policy note, business leaders highlighted that waste-to-energy growth is slowed by expensive project costs and the lack of consistent waste feedstock. Many local governments still prefer traditional landfills because dumping fees often overlook long-term environmental impacts, making landfills appear cheaper upfront.

“The fees paid to dump waste often do not reflect the full cost over time. These fees usually cover only the immediate expense and not the added costs of hauling waste long distances, managing landfill sites, or dealing with environmental effects later on,” local experts explained. Recognizing these hidden costs could help reveal when waste-to-energy projects become financially viable.

Clearer Policies Essential for Progress

Regulatory uncertainty also emerged as a major barrier. Private sector participants called for clearer, consistent guidelines from national agencies to improve coordination with local governments. Aligning policies, planning, and investments across all levels of government is vital to unlock waste-to-energy growth potential.

“Strong leadership, clear institutional roles, and better alignment across agencies and LGUs will be important,” the report advised. Additionally, a comprehensive approach to procurement, infrastructure, and governance can reduce project risks and enhance outcomes.

Rethinking Waste-to-Energy’s Role

Stakeholders urged a shift in how waste-to-energy is perceived—not just as a waste disposal method but as an essential part of the nation’s energy infrastructure. Since much of the cost comes from handling and processing waste, ensuring fair and predictable electricity pricing is key to improving project feasibility.

Pooling Waste to Boost Viability

Another obstacle is ensuring waste-to-energy plants receive enough waste to operate efficiently. Because most local governments do not produce sufficient waste individually, regional collaboration through clustering municipalities to pool waste is recommended.

To support growth, energy authorities plan to include waste-to-energy and biomass projects in the next renewable energy auction set for late 2025. Recent policy clarifications also allow waste-to-energy projects to qualify for incentives under the Renewable Energy Law, even if the waste is not solely organic, potentially improving financial prospects.

The business group pledged to continue dialogue and cooperation with government and private stakeholders. A more detailed policy brief will be released soon, offering further recommendations to drive sustainable waste-to-energy growth.

For more news and updates on waste-to-energy growth, visit Filipinokami.com.

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