DEDE plans Bt80-bn community solar-cell project
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The Department of Alternative Energy Development and Efficiency (DEDE) said the 800-megawatt solar-cell power-generation project, which installs solar-cell panels in local communities, will need about Bt80 billion in investment outlay.
As part of the project, the DEDE will propose that the government map out a promotional policy for Thai solar-cell producers, leading to a reduction on the reliance of imports.
According to Kulwaree Buranasajjawararaporn, director of the DEDE’s Solar Innovation Group, the community solar-cell power-generation project is backed by the National Energy Policy Office (NEPO), which asked the Energy Ministry and the National Village and Urban Community Fund Office to develop the project.
The NEPO, chaired by Energy Minister Pongsak Ratapongpaisal, will be responsible for issuing regulations and guidelines and selecting the communities that are ready to receive the solar-cell-panel installations.
The Energy Regulatory Commission will issue regulations for the sale of power generated by the community solar-cell installations.
The community solar-cell power-generation project will require an investment outlay of about Bt100 million per megawatt and would begin distributing solar-cell-generated power on a commercial basis by 2014. The Village Fund will assume ownership of the projected, which is expected to cost around Bt80 billion.
To finance this project, the Village Fund will rely on low-interest loans from state banks under the government-promoted “feed-in tariff” electricity rate for a period of 25 years. The FIT rate for the first to third years would be Bt9.75 per unit; at Bt6.50 per unit for the fourth to 10th years; and Bt4.50 per unit for the 11th to 25th years.
The DEDE expects government banks should be eager to provide financial support as the project would provide satisfactory returns.
Kulwaree said the community solar-cell power-generation project would help boost income for the participating communities and fulfil their electricity needs.
It should also prove to be more beneficial to them than the solar farms, which are further away from the electricity users, leaving most of the benefits to the private operators.
In any case, at the policy level, there should be some incentives to support Thai solar-cell producers, for example, allowing them to receive more FIT if they use locally produced panels. This would boost local solar-cell development and investment because of the lower cost of locally made panels, thus also reducing the reliance on imports.
Furthermore, the ranking of subcontractors, the establishment of product standards and government assistance for communities in developing and running efficient solar projects would also stimulate growth of the Thai solar-cell industry.
