With the development of Chinese economy, upgrading of urbanization and changes of lifestyle, waste output keeps increasing, leading to serious environment pollution. Many cities are faced with garbage disposal problems. China has the most waste output in the world with more than 7 billion tons of untreated municipal solid waste that occupies over 3 billion square meters of land. Out of the 668 cities in China, two thirds are surrounded by garbage. In one fourth of the cities, garbage has to be transported to nearby rural areas, which brings about secondary pollution such as underground water contamination and stench.
The Twelfth Five Year (20112015) Plan of the Construction of Municipal Solid Waste Treatment Facilities issued by Chinese government states that harmless garbage disposal rate in Chinese cities will reach 90%, and that in rural areas will be 70% in 2015. Capacity of urban waste incineration facilities is expected to reach 35% of total harmless treatment capacity, of which the eastern region will surpass 48%. To achieve this goal, Chinese government launched a series of policies to encourage Waste Incineration for Power Generation projects. The national benchmark price of waste power generation was 0.65 CNY/kWh (tax included) in April 2012. The raised ongrid power tariff of waste power generation, tax preference and subsidies greatly promote the revenue and profitability of waste power generation enterprises. In addition, environmental policies in China become stricter and public awareness of environment protection increases, which both promote the development