Analysis of Investment Models for Megawatt Scale Photovoltaic Power Plant in Thailand

Authors

  • Phongsakorn Damnoen School of Renewable Energy and Smart Grid Technology, Naresuan University
  • Nipon Ketjoy School of Renewable Energy and Smart Grid Technology, Naresuan University

Keywords:

Investment model, Megawatt scale, PV power plant, Grid parity, Economic analysis, Thailand

Abstract

This paper is an analysis of the three common investment models for financing PV power plants in Thailand; (1) 100% investor financing of investment (capital), (2) 70% investor financing of investment with 30% finance by a bank loan and (3) 100% investor financing of investment (capital) and EPC (Engineering, Procurement & Construction) or installation cost. These three investment financing models were analyzed for three PV power plant project sizes; 5, 50, and 100 MW PV power plant capacities. The economic indicators used in the analysis include Cash flow, LCOE, PP, BCR, NPV, and IRR. The results of the analysis show that the greater the project size, the better is the economic performance because of economies of scale. The results demonstrated that 100% investor financing of investment (capital) is suitable for a 5 MW project while 100% investor financing of investment plus EPC cost is more appropriate for 50 and 100 MW projects. However, this investment model is suitable only for investors who have EPC experience. These are investors who have experiences as, utility-scale PV power station developers and operators, and have good business connection with other players of the PV industry in Thailand.

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Published

21 December 2018

How to Cite

Damnoen, P., & Ketjoy, N. (2018). Analysis of Investment Models for Megawatt Scale Photovoltaic Power Plant in Thailand. Journal of Renewable Energy and Smart Grid Technology, 14(1). Retrieved from https://ph01.tci-thaijo.org/index.php/RAST/article/view/128130