Waste incinerators aren’t like a normal fire, it runs at far higher temperatures which converts most stuff to carbon dioxide. Some byproducts have to be filtered before release. Newer incinerators don’t release much beyond carbon dioxide into the atmosphere but it isn’t zero.
Energy is generated because combustion releases heat and that heat is used to heat water into steam which runs a steam turbine to produce electricity. It isn’t stored and is sent into the electrical system like any other power generator.
Properly constructed waste incinerators are fairly expensive to build and to run. The energy it produces can offset some costs but it is far from paying for the incinerator’s operation. The alternative to incineration is to landfill (other than some potential for recycling). So in areas with limited landfill or landfills that are really far away, incineration might be the best option. Broadly speaking though, recycling and reducing waste is the preferred option.
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