Problem

Urban solid waste is a fundamental and priority issue for government authorities due to the environmental and health risks that improper management can cause. Although Integrated Solid Waste Management has been discussed for several decades, its implementation has been a complex task for many countries in Latin America and the Caribbean. This complexity is often due to a lack of economic and technical resources, combined with changing consumption habits, population growth, and education.

In the Dominican Republic, particularly in densely populated areas like Greater Santo Domingo, the storage, collection, and final disposal of Urban Solid Waste (USW) remain challenges for municipal authorities. Given that urban solid waste collection is an important stage in its integrated management, providing adequate collection and transportation services is a priority for municipal and national authorities.

To improve the provision of solid waste collection and transportation services by enhancing efficiency and reducing greenhouse gases (GHG), the Inter-American Development Bank (IDB) granted technical assistance to the Solid Waste Unit of the Ministry of Environment. 

This project aims to evaluate the viability and propose business models for converting solid waste transport vehicles in Greater Santo Domingo to low and zero-emission technologies like biogas and electricity.

The energy for these trucks will come from biogas captured during the gradual closure of the Duquesa landfill, the biggest in the country. The IDB supports this effort through credit operations and technical assistance. Closing the Duquesa landfill, the largest in the country, allows the captured biogas to fuel trucks, reducing GHG emissions and enhancing waste collection services. This initiative also supports the country’s goal of fuel independence.

The project

To achieve the objectives of the technical assistance, the IDB contracted BASE to carry out the following activities:

• Evaluate the performance of current solid waste collection and transportation trucks (diesel technology) versus electric and biogas trucks on three proposed routes in Greater Santo Domingo to determine the energy consumption profile of the electric and biogas truck fleet based on the route and load. 
• Define the infrastructure requirements necessary for implementing a fleet of electric and biogas solid waste transport trucks.
• Calculate the Total Cost of Ownership for electric and biogas solid waste transport trucks, using biogas produced at the final disposal site (Duquesa), and selected charging systems, versus diesel.
• Develop a financial and economic assessment of the project for implementing waste collection routes with electric and biogas solid waste transport trucks versus diesel.
• Establish and evaluate the most viable business models and financing mechanisms for the widespread adoption of electric and biogas solid waste transport trucks, analyzing the regulations affecting this type of service and transport.
• Define the technical specifications, charging systems, and energy supply infrastructure for acquiring the prioritised fleet of solid waste transport trucks between the two technologies (electric and/or biogas).

The market study, which includes an evaluation of market conditions, policies, regulations, macroeconomics, and ecosystem capacities, demonstrated that both options are feasible, as the regulatory framework does not limit such implementations, and there is interest from service operators and financial institutions. Preliminary findings identified that the cost of generating one cubic meter of methane is as competitive as generating one kWh of electricity using biogas from the landfill. However, due to the efficiency in the use of biofuel, using it as electricity allows for a larger implementation of trucks, resulting in a greater reduction of greenhouse gases.

The project will evaluate the economic viability of implementing the technologies and decide which option offers the best technical and economic advantages. Furthermore, after determining economic viability, the project will focus on the bankability of the initiative, emphasising the financial capacity of the private sector and revenue streams from the public sector.