Economic Value Analysis of Solar Farm Project for Electricity Generation and Supply in the Southern region of Thailand By Compairing The Pricing Of Electricity Purchasing in Feed-In Tariff System or No Feed-In Tariff System
Abstract:
Electricity usage in the Southern region of Thailand increases every year. Due to the lack of Power Utilities capabilities currently and given the electric power generation projections, electricity demand forecasts may not be met sufficiently in the future. In order to comply with the PDP 2015; Energy Integration Plan of the Ministry of Energy and to support the policy of renewable energy and power purchase from renewable energy, i.e. Feed-in-Tariff format (FITF) is one good prospective solution for future demand. The production of electricity from solar energy an alternative way. It can reduce the cost of using electricity. This cost trend will be higher initially because the investment value for such electricity production has a high cost and may deem to be a risky investment, causing little interest in private investment into alternative energy. The use of solar energy may be the basic energy for electricity generation which may also be a viable alternative to fossil fuels.The study therefore analyzes the investment value a solar power plant project on the ground. By comparing between the prices Feed-in-Tariff (FITF) with no Feedin-Tariff price (Non-FITF), this study will carry out various data analysis in terms of investment cost, purchase price and energy consumption in Southern Thailand. The study found that the production of electricity by solar energy, may not be a feasible as an initial investment. However, if there is support for purchasing electricity in the Feed-in Tariff system, the electricity supplier may make the project viable.