The effect of policy on photovoltaic competitiveness: Analysis on household on-grid application in rural Thailand
2014 (English)In: 9th Conference on Sustainable Development of Energy, Water and Environment Systems, 2014Conference paper (Refereed)
The needs for increasing energy access, the depletion of fossil fuels, and the urgency of climate change mitigation push the technology shift towards renewable energy sources. In Thailand, fossil fuels account for more than 90% of the energy mix in power generation. The government has established an incentive program to encourage the transition from fossil fuels to solar energy. However, there has been very little interest among household adopters to utilize this incentive. The aim of this study is to assess the economic viability of small-scale PV systems for on-grid household electricity generation in rural Thailand. The results reveal that the profitability varies greatly depending on system sizes, geographical areas, electricity consumption, and loan levels. Unfortunately, the current policy yields an economic loss for household adopters in various scenarios especially when the consumed electricity is deducted from the electricity generated from PV systems. Nevertheless, the competitiveness of PV systems can be increased with the provision of additional subsidy of which we recommend regressive subsidy rate. Our study emphasizes the importance of government intervention on the technology shift towards sustainable sources.
Place, publisher, year, edition, pages
economic viability assessment, government, renewable electricity, solar energy, subsidy
IdentifiersURN: urn:nbn:se:kth:diva-158926OAI: oai:DiVA.org:kth-158926DiVA: diva2:780497
The 9th Conference on Sustainable Development of Energy, Water and Environment Systems, Venice-Istanbul, 20/09/2014 to 27/09/2014
QC 201502232015-01-142015-01-142015-02-23Bibliographically approved