Report Overview

An increasingly high demand for energy driven by significant shortage due to an imbalance between supply and demand, rapid urbanization, and rising consumption levels leading to increased waste generation is expected to boost the growth of South Africa Waste to Energy (WtE) Market during the forecast period between 2024 and 2030.

South Africa Waste to Energy (WtE) Market - Industry Trends & Forecast Report, 2030

South Africa Waste to Energy (WtE) Market size was estimated to be worth USD 643.18 million in 2023. During the forecast period between 2024 and 2030, the South Africa Waste to Energy (WtE) Market size is projected to grow at a CAGR of 5.07%, reaching a value of USD 941.15 million by 2030. Major growth factors for the South Africa Waste to Energy (WtE) Market include increasing power consumption owing to rapid urbanization and industrialization, increasing focus on sustainability, and growing emphasis on emissions of greenhouse gases. In addition, advancements in WtE technologies are anticipated to present lucrative growth opportunities to the South Africa Waste to Energy (WtE) Market.

Waste to Energy (WtE) – Overview

Waste to energy (WtE) refers to the sector within a country's energy and waste management industry that involves converting various forms of waste into usable energy, typically in the form of electricity and heat. The WtE technologies offer a sustainable and environmentally friendly solution to two critical challenges: waste disposal and energy generation. Various types of waste materials, such as municipal solid waste (MSW), industrial waste, agricultural residue, and biomass, are utilized as feedstock in this sector. These waste materials are processed using different conversion methods, including incineration, anaerobic digestion, gasification, and pyrolysis, among others. The primary objective of the waste to energy sector is twofold: first, to reduce the volume of waste going into landfills and thus alleviate the strain on existing landfill capacity, and second, to produce clean and renewable energy from the waste stream.

South Africa Waste to Energy (WtE) Market

Growth Drivers

Rising Investments in Waste to Energy (WtE) Sector

South Africa is emerging as a lucrative market for the WtE sector owing to the high waste generation and lack of infrastructure for efficient waste management. As a result, government as well as private industry players are significantly investing to develop the waste management infrastructure in the country. The Waste to Energy International (WETI), a company based in Estonia and specializing in investment and construction of WtE and alternative energy plants, announced the construction of 100,000 tpa waste to energy plant in South Africa. Such investments are anticipated to drive the South Africa Waste to Energy (WtE) Market over the forecast period.

Challenges

High Capital Requirements for WtE Infrastructure and Technology

Waste to energy (WtE) methods are being used by the South African government and relevant agencies to improve waste management in the nation. The South African waste-to-energy sector is, however, severely constrained by the high cost of building waste-to-energy plants. It costs about USD 440 million to develop a typical plant with an annual energy output capacity of 400 GWh. In addition, when compared to other fossil fuel-powered options, WtE is frequently seen as an expensive choice for energy production and waste management. These factors act as major barriers to the growth of the South Africa Waste to Energy (WtE) Market.

South Africa Waste to Energy (WtE) Market

Segmental Coverage

South Africa Waste to Energy (WtE) Market – By Technology

Based on technology, the South Africa Waste to Energy (WtE) Market is segmented into thermochemical, biochemical, and others. The thermochemical segment is further classified into incineration, pyrolysis, and gasification and holds the largest share in the South Africa Waste to Energy (WtE) Market. Thermochemical conversion is often less product-specific and performs better with feedstocks that have a lower moisture content at higher temperatures and conversion rates. In addition to treating municipal and industrial solid waste and producing electricity, MSWI is a useful technique for commercial applications as it enables the recovery of energy, minerals, and metals from the waste stream.

South Africa Waste to Energy (WtE) Market – By Waste Type

Based on waste type, the South Africa Waste to Energy (WtE) Market is segmented into municipal solid waste, process waste, agriculture waste, and others. The municipal solid waste segment accounts for the largest market share. The growing population directly results in the increasing volume of municipal solid waste in the country, which demands efficient waste management. According to the UN Environmental Programme, South Africa generates a total of 12.7 million tons of waste per annum domestically, of which around 3.67 metric tons are dumped illegally in the country. As a result, demand for effective waste management solutions is rising, propelling the growth of the South Africa Waste to Energy (WtE) Market.

South Africa Waste to Energy (WtE) Market – By Application

Based on application, the South Africa Waste to Energy (WtE) Market is segmented into electricity and heat. The electricity segment dominates the UAE Waste to Energy (WtE) Market. The increasing power consumption owing to rapid urbanization directly influences the growth of the segment. Electricity generation from waste is emerging as an effective technique to solve the problem of waste disposal and the pressing issue of landfills and garbage dumps. Furthermore, waste-to-electricity generation is an economical method that makes cities self-reliant on power demand.

Competitive Landscape

Major players operating in the South Africa Waste to Energy (WtE) Market include Suez Environnement S.A., Veolia Environnement S.A., Covanta Energy Corporation, Biotherm Energy, Mondi Group, Interwaste Holdings Ltd, EnviroServ Waste Management, New Horizons Energy, Clean Energy Africa, Averda South Africa, and Yokogawa South Africa (Pty) Ltd. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In April 2024 – Astra Energy Inc., an electric power generation company based in the United States, and Powertron Global, a US headquartered energy saving solutions provider, formed a joint venture to launch waste to energy (WtE) initiatives across Africa, including South Africa.

Scope of the Report

By Technology

• Thermochemical

• Incineration

• Pyrolysis

• Gasification

• Biochemical

• Others

By Waste Type

• Municipal Solid Waste

• Process Waste

• Agriculture Waste

• Others

By Application

• Electricity

• Heat