Economic Evaluation of Photovoltaic Systems for Rural Electrification in Thailand

Abstract

This paper presents successful story of rural electrification in Thailand. Ninety nine percent of the country is electrified, but the power supply mainly relies on conventional energy sources. The remaining one percent of unelectrified areas presents challenges as well as opportunities for renewable energy resources, especially for Photovoltaic applications. Photovoltaic systems for electrification may not always be economically viable, but it could provide a very valuable service to people in remote unelectrified areas with no hope for grid connection in the medium and long term. To satisfy the growing demand of energy in a community, a Photovoltaic hybrid system can be designed by integrating an agriculture machine to supply the more reliable power to the community with the introduction of a community micro grid. Without the interest and willingness of the community any community electricity system may fail in short span of time. The economic implications of learning by doing show that the investment made in the present will be worth of an immense benefit in future. The future worth benefit will be increasing as the value of money is decreasing because of inflation and the decreasing discount rate. Better health of the rural people will increase the involvement of the communities to more efficient economic activities, hence reducing poverty and increasing more economic mutual benefits in the community. This will increase the economic prosperity of the community.