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•Introduce the latest industrial policies and market prospect of WTE plants in China.•Discuss the technologies, costs and benefits (including economic benefits and social benefits).•Made a economic analysis of a case of WTE plant.•Made a break-even analysis and sensitivity analysis of the WTE plant.•Combining the industrial analysis and economic analysis.
The generation of municipal solid waste is further increasing in China with urbanization and improvement of living standards. The “12th five-year plan” period (2011–2015) promotes waste-to-energy technologies for the harmless disposal and recycling of municipal solid waste. Waste-to-energy plant plays an important role for reaching China’s energy conservation and emission reduction targets. Industrial policies and market prospect of waste-to-energy industry are described. Technology, cost and benefit of waste-to-energy plant are also discussed. Based on an economic analysis of a waste-to-energy project in China (Return on Investment, Net Present Value, Internal Rate of Return, and Sensitivity Analysis) the paper makes the conclusions.