An analysis on the competitive advantages of garbage incineration power plant

Advances in garbage incineration technology have made it possible to turn waste into energy. However, launching such a plant will require huge amount of investment, and the cost of operation is expensive. So it is not easy for municipal governments to adopt such technology in widespread due to shortage of fund. Private capital can be a source of fund, but return should be ensured. In this paper, the authors carried out a case study in a solid waste incineration power plant located in Jinjiang, PRC, to explore the sources of competitiveness. With value chain analysis and other strategic cost management tools, the authors find that competitiveness of such plants lies in its differentiation strategy. Premium comes from favorable rate of output, and tax benefits. The authors also make some recommendations on sustaining its competitive advantages.