Off Grid Insights : It’s Not About Waste — It’s About Contracts

Research evidence excerpt

Off Grid Insights : It’s Not About Waste — It’s About Contracts

Global Research

15 June 2026ab

Off Grid Insights Equities

Latin AmericaOff Grid Insights : It’s Not About Waste — It’s

About Contracts Utilities

Giuliano Ajeje

Analyst

giuliano.ajeje@ubs.com

A Contract-Driven Utility Vertical within an Evolving Regulatory Framework +55-11-2767 6371

Following a recent discussion with a senior expert in the Brazilian power sector, we Henrique Simoes

believe Brazil’s waste-to-energy (WtE) opportunity is meaningful in scale and Associate Analyst

evolving in structure. While the sector is often framed as primarily an ESG-related henrique.simoes@ubs.com

or niche infrastructure topic, this may understate its potential to develop into a +55-11-2767 6308

broader utility vertical over time, encompassing waste treatment, energy recovery, Julia Ongarato

biomethane and environmental monetization. At present, the pace of development Associate Analyst

appears more closely linked to municipal pricing frameworks, concession julia.ongarato@ubs.com

structuring and contract duration than to technological readiness. In our view, this +55-11-2767 6694

suggests the sector is better understood as a contract- and policy-dependent

infrastructure theme, rather than purely a technology adoption story. This

distinction is relevant when considering both timing and valuation.

WtE as Part of an Integrated Waste System

Waste-to-energy may be more appropriately viewed as one component of a broader,

integrated waste management system, rather than as a standalone solution. Such

systems typically encompass collection, sorting, recycling, and organic treatment

(such as composting or biodigestion), with WtE applied to residual waste streams.