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Planning of Sustainable Renewable Energy System for Remote Village Electrification

*N. Chayakul, **D. Tayati, ** W. Pruksikanun, **P. Kanchanakaroon , **T. Komolmit, ** Y. Srisiriuthaiwong and **W.Tayati * Provincial Electricity Authority, 200 Ngam Wong Wan Road, Bangkok 10900, Thailand. ** Chiang Mai University, Chiang Mai 50200 THAILAND Email:[email protected]

Abstract The Centre for Engineering Service (CES), Chiang Mai University in collaboration with Thailand's Provincial Electricity Authority (PEA) had conducted a "Feasibility Study on Renewable Energy for Remote Village Electrification". The study aims to produce a master plan for a country-wide remote village electrification programme. A socio-economic and field survey of 547 villages had been carried out and data obtained had been analysed. Finally, a two phase master plan had been developed taking into consideration economic, technical and sustainability. Community participation in planning, management, operation and maintenance of the renewable energy system options were regarded as a key influencing factor for sustainable development. It was found that photovoltaic and hydro power have great potential in these villages. Particularly, Solar Home System is economically and technically viable due to operation and maintenance simplicity. For a village with 12 month hydro power potential, hydropower plant is a viable option depending on the electricity demand, which is proportional to the number of households. PV and PV/Hydro Micro grid are also viable options but to a lesser extent.

1. INTRODUCTION

The PEA was founded as a public enterprise in accordance with the Provincial Electricity Authority Act 1960. PEA has a mandate to meet Thailand's national sustainable development objectives, as outlined in the Government's National Economic and Social Development Plans namely: · · · · Electricity services will be expanded to a larger amount of rural villagers in accordance with the Government policy and people requirements. Uplift the quality of life and living standards of villagers on the villages. Uplift the quality and efficiency of medical services and education. Decrease problems in pollution and timbering for cooking purposes.

As of September 1998, there were 599 un-electrified villages which were not included in PEA's grid extension plan. Fifty of these villages can not be serviced due to security reason. The remaining 549 villages, which 90% of the villages are in Northern Thailand and populations are hill tribe's people, are mostly located in forest reserves. PEA is not allowed to extend distribution grid to those villages. PEA has employed the Centre for Engineering Service, Chiang Mai University, as a consultant to conduct a Feasibility Study on Renewable Energy System Rural Village Electrification. The study has received a financial support from Energy Conservation Fund, National Energy Policy Office (Chayakul et al, 2004). The study aims to analyze a feasibility of electrifying the 560 remote villages mentioned above using renewable energy resources. The master plan for a short and medium term implementations will also be undertaken. The plan will be used by PEA to electrify those villages according to priority and financial funding available to implement the program.

1.1 Village Survey Methodology

Village Baseline data survey was conducted by face to face interviewing method using interview forms prepared by the consultant. The first 20 sampled villages were surveyed, by every member of the consulting team, to collect village and household baseline data (Centre for Engineering Service,

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2002). In addition, a focus group discussion with community leaders was conducted to assess administration potential and to estimate household energy needs. In the second stage, surveys of the remaining 540 village were conducted by a teacher who works in the village or a nearby village. CES employed teachers from both of the Ministry of Education, Primary School Office and the Non ­ Formal Education Office. The interviews were carried out by the welltrained teachers who also assess potential of the village administration potential according to the assessment form given.

1.2 Survey Data Obtained

Survey data obtained consists of · Village baseline data · Household economics and energy use · Village potential assessment Survey data is entered into a custom made database management program. The village database can report each village data, the household data and the village potential. The village baseline data is used to determine feasible renewable energy options by Homer Pro, a renewable energy system analysis program. The program gives optimal system sizing of each feasible option for 20 year project lifetime. Information from the database is utilized to evaluate financial and economic internal rate of return on investment using a developed spreadsheet program. Results of these analyses were reported and further processed as shown in Figure 1.

Village's questionnaire (Basic overview data of village) 1 set for each village

Household's questionnaire (Energy and managerial economic of village) 11 households for each village

Potential evaluation form (Basic overview data of village) 1 set for each village -Survey village

Households' data (From average of 11 households)

- Data entry and processing by computer program

Technical , Financial and Economic Feasibility Study

Basic overview data of village map photo

Financial and economic internal rate of return

Potential in operation and maintenance renewable energy system of villages

Village database

Figure 1 Block Diagram of Data Analysis

1.3

Data Analysis

To analyze a renewable energy system feasibility, village and household data is used to assess socio ­ economic, energy uses and renewable energy potential of each village. Then, analysis and design of renewable energy options were carried out taking into consideration renewable energy resources available in the village. The feasible renewable energy resources identified are solar and hydro power. Energy options covered in this study are, · · · Grid Extension Solar Home System PV Micro Grid

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PV/Hydro Micro Grid Hydro Micro Grid

Technical analysis and design were carried out using a 100 household village model as a standard template. It is found that each renewable energy system option required components which sizes are dependent on the number of households in the village. Details of features, ratings and prices of system components are used in financial and economic analyses. Table 1 shows system components sizes, investment and capacity of each renewable option. Investment phasing has been considered for each option i.e. hydro power system should be invested totally in year one with adequate capacity for the forecasted 20th year demand. Demand forecast is calculated using assumptions given in Table 2. To select a feasible option that meets village demand in a sustainable fashion, the consultant has taken into consideration several influential factors e.g. resource potential, investment cost, managerial potential/capability of the village, acceptance of technology to be employed and finally financial and economic returns (Tayati et al, 2004). Sample of such a plan for 10 villages is given in Table 3. Results of the analysis for ten sampled villages are summarized in Table 4. Table 1 Component Sizes of a System for a Standard 100 Household Village Installed Capacity at each year (kW) 1 SHS Hydro PV-Grid PV [kWp] Turbine [kW] PV [kWp] Inverter [kW] Battery [kWh]* PV/Hydro Turbine [kW] PV [kWp] Inverter [kW] 4.35 25 10 9 130 2 10 12 5 2 162 2 10 3 12 171 3 18 15 2 240 2 5,078,000 0.4 in dry season 0.6 in wet season 4,818,000 0.4 1st year Investment [Baht] 1,730,625 3,028,000 System Capability [kWh/HH/day] DC system = 0.08 AC system = 0.32 0.8

System

Component

Battery [kWh]* 130 162 171 240 Note: Battery size in this Table is the renewed size in the stated year for replacement. Table 2 Growth Rate of Household and Electricity Demand Village Household Growth Rate 2.5 % Growth Rate of Household Demand Year 1 ­ 2 75% Year 3 ­ 7 80% Year 8 ­ 12 85% Year 13 ­ 17 90% Year 18 ­ 20 95%

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Table 3 List of Villages Used as Samples of The Feasibility Study

No. of House hold 54 Mae Ngan Luang Bai Na 3 4 5 6 7 8 9 10 01086 Huai Duea 06061 Hua Doi 06098 So Mue 06109 Mae Pae Luang 06126 11050 11054 Mae Klong Yai 11096 4 Mokro Khun Huai Mae Woei Mae Song 5 1 Tha Song Yang Mae Song Tha Song Yang Tha Song Yang Umphang 2 Kong Koi Sop Moei 6 Sop Moei Sop Moei 5 Santi Kiri Mae La Noi 5 Pa Pae Mae Sariang Mae Hong Son Mae Hong Son Mae Hong Son Mae Hong Son Tak 35 Tak 95 Tak 170 12 12 12 1 4 Pang Hin Fon Na Kian Mae Chaem Omkoi Chiang Mai 19 Chiang Mai 64 117 28 67 201 0 12 11 8 10 9 Hydro Potential (Months) 5

No. 1 2

Code 01039 01055

Village Name Om Sung

Mu 11

Tambon Ban Tap

Ampher Mae Chaem

Province Chiang Mai

1.4 The Master Plan of Renewable Energy for Remote Village Electrification

An implementation master plan for the renewable energy electrification in 547 remote villages can be classified into 2 phases by using villages' potential scores. The two phases of installation plan has approximately total capacity of 3,253 KW, and initial investment of 768,428,075 Baht, and covers 34,479 households. For the first phase, it covers 332 villages (60.7%) and 20,920 households (61%), with the approximately total capacity of 2,032 KW (62.5%) and initial investment of 461,930,575 Baht (60.1%) (Table 5). For the second phase, it covers 215 villages (39.3%) and 13,442 households (39%), with the approximately total capacity of 1,221 KW (37.5%) and initial investment of 304,497,500 Baht (39.3%) (Table 5).

1.4.1 Phase I

· Solar Home System (SHS)

The SHS will be an appropriate system for 282 villages (84.9%), with the approximately total capacity of 935 KW (46%) and initial investment of 279,692,070 Baht (60.5%), and covers 16,104 households (76.3%) which has the highest portion relative to the Hydro, PV/Hydro and PV Micro Grid systems, respectively. Regarding to the analysis of EIRR (Economic Internal Rate of Return) with yielding the rate of return greater than 12%, 8%, and 4%, the SHS also has the highest amount of villages relative to the Hydro, PV/Hydro and PV Micro Grid systems, respectively. The amount of villages with the SHS yielding the EIRR greater than 12%, and greater 8% but less than 12% are 169 and 33 villages, respectively (Table 6) · Hydro Micro Grid

The Hydro Micro Grid system will be a suitable system for 37 villages (11%), the second rank behind the SHS. Yet, the Hydro Micro Grid system has the roughly total

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capacity of 926 KW (47.5%), more or less the SHS. Also, the Hydro Micro Grid system has initial investment about 116,136,000 Baht (25.1%), and covers 3,802 households (17.4%). In addition, regarding to the EIRR analysis, in term of the amount of villages yielding the rate of return greater than 12%, 8%, and 4%, the Hydro Micro Grid system still be the second rank behind the SHS (Table 6). · PV/Hydro Micro Grid

The PV/Hydro Micro Grid system will be a proper system for 10 villages (3.0%), with the approximately total capacity of 83.1 KW (4.2%) and initial investment of 45,264500 Baht (9.9%), and covers 831 households (4.2%), the third rank behind the SHS and Hydro Micro Grid system, respectively. In addition, regarding to the EIRR analysis, in term of the amount of villages yielding the rate of return greater than 8% and 4%, the PV/Hydro Micro Grid system still be the third rank behind the SHS (Table 6). · PV Micro Grid

The PV Micro Grid system will be a suitable system for only 3 villages (0.9%), with the roughly total capacity of 48.4 KW (2.4%) and totally initial investment of 20,838,000 Baht (4.6%), and covers 484 households (2.3%), the lowest portion relative to the SHS, Hydro and PV/Hydro Micro Grid systems, respectively. In addition, regarding to the EIRR analysis, all 3 villages which is installed the PV Micro Grid system yields the rate of return less than 4%(Table 6).

1.4.2 Phase II

· Solar Home System (SHS)

The SHS will be an appropriate system for 189 villages (87.9%), with the approximately total capacity of 571.3 KW (46.8%) and initial investment of 170,755,000 Baht (55.7%), and covers 9,838 households (72.6%). The SHS still has the highest portion relative to the Hydro, PV and PV/Hydro Micro Grid systems, respectively. Regarding to the analysis of EIRR (Economic Internal Rate of Return) with yielding the rate of return greater than 12%, 8%, and 4%, the SHS still has the highest amount of villages relative to the Hydro, PV and PV/Hydro Micro Grid systems, respectively. The amount of villages with the SHS yielding the EIRR greater than 12%, and greater 8% but less than 12% are 83 and 10 villages, respectively (Table 7). · Hydro Micro Grid

The Hydro Micro Grid system will be a suitable system for 15 villages (7%). The Hydro Micro Grid system has the roughly total capacity of 459 KW (37.6%) and initial investment about 53,820,000 Baht (17.6%), and covers 1,814 households (13.4%), the second rank behind the SHS. In addition, regarding to the EIRR analysis, in term of the amount of villages yielding the rate of return greater than 12%, 8%, and 4%, the Hydro Micro Grid system still be the second rank behind the SHS (Table 7). · PV Micro Grid

The PV Micro Grid system will be a proper system for 7 villages (3.3%), with the approximately total capacity of 106.9 KW (13.3%) and initial investment of 65,159,500

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Baht (21.4%), and covers 1,609 households (12.0%), the third rank behind the SHS and Hydro Micro Grid system, respectively. However, regarding to the EIRR analysis, all 7 villages which is installed the PV Micro Grid system yields the rate of return less than 4% (Table 7). · PV/Hydro Micro Grid

The PV/Hydro Micro Grid system will be a suitable system for only 4 villages (1.9%), with the roughly total capacity of 29.8 KW (2.5%) and initial investment of 16,736,000 Baht (2.2%), and covers 298 households (2.2%), the lowest portion relative to the SHS, Hydro, and PV Micro Grid systems, respectively. Yet, regarding to the EIRR analysis, only one village installed the PV/Hydro Micro Grid system yields the rate of return greater than 4%, and the remaining yields the rate of return less than 4% (Table 7).

1.5 Sustainable Renewable Energy System

Investment cost of renewable energy system electrification is comparatively high and the advantage of the system is a zero cost on fuel. Therefore, investment is worth when the usage of generated energy is continued for an entire project timeframe (20 years). From monitoring study of pilot project, solar cell electrification system is sustainable if the management system has these components or major factors, (1) Community involvement in all activities from start to finish such as planning, installation, system maintenance, management financial of electricity and village funds, etc., (2) Community is capable of maintaining the system by itself such as · has technician in village that can maintain the system, · member of village committee can understand and be able to do book keeping and manage the fund, · strong community capability, members accept and stick to the rule, willing to pay monthly electricity bill, etc., (3) Electricity helps to increase household incomes such as from weaving, etc., (4) Power system can support to basic needs of users such as battery charger system suitable for looking for food animal in the night time, (5) User can reduce other energy costs such as kerosene, candle, etc., (6) User has better economic condition, be able to pay maintenance cost. If these components do not exist in the villages, then the capacity builting scheme should be introduced. Supply of renewable energy for remote village must be considered as an integrated community development. Several organizations concerned have to get involve such as Tambon Administration Committee (TAC), skill development unit, cooperative unit, public health unit etc. On strong community issue, the consultant gives the highest priority to an involvement of local community. Therefore, a village having high score on this potential will be serviced first (i.e. is placed in the first phase of investment). However, a village in second phase of investment can strengthen their community managerial skill by learning from the first group.

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1.6 Suggestions

(1) Building up a strong community If the community capability is not up to expected level, assistances from government officials (such as teacher, military, border patrol police unit) who work in the village as a mentor or advisor is deemed appropriate. Because these officials are competent and be able to communicate with villagers better than people from outside village. (2) Government policy Renewable energy electrification system has limited capacity of delivered power. A village in this project which is in forest reserve area, but is located not far from PEA's distribution system, villagers has expectation that PEA will expand distribution system to their villages in near future. They are not willing to accept the solar home system provided by government, because they are afraid that once they accept SHS, PEA will not expand distribution system to their village. Therefore, if the government has clear policy and is committed to that policy that construction activity in forest reserve is not and will never be allowed, this policy will provide more advantages on villager acceptance of renewable energy. (3) Survey data of water resources potential in villages are inevitably a primary data. These data are collected by people who are not an expert in this subject. Therefore, these data have to be verified and confirmed in more details by expertise before installation. (4) Process in building up a strong community, an understanding of renewable energy system e.g. how to operate the system correctly and safely and a know how on system maintenance should be carried out continuously. For example, training of these issues should be arranged for school children in the village. (5) Demand on electricity of the community always grows and follows other surrounding factor, for example, household economic. Therefore, demand side management should be introduced to user for managing limited of electricity energy. An example of demand side management is energy saving lamp using 1-2 Watts, high intensity light emitting diode (LED). This lamp can be used to illuminate pathway or rest room. After experiment at a pilot village, it is found that villagers accepted uses of this type of lamp.

2. ACKNOWLEDGEMENTS

The authors are grateful to the Thailand's Energy Conservation Fund, Energy Policy and Planning Office, Ministry of Energy, for providing financial support to conduct this study. We highly appreciate assistance and cooperation rendered by many agencies, especially teachers in remote villages in collecting village baseline data, without their valuable contributions the project will not be successfully completed within the scheduled timeframe.

3. REFERENCES

Center for Engineering Service, Chiang Mai University (2002) , Inception report and Feasibility study report on renewable energy electrification in 20 pilot remote villages", A report submitted to the Provincial Electricity Authority, 2002 Chayakul, N., Saengsrithorn, S., Kanjanakaroon, P., Pruksikanon, W., Chulikawit, T., Rattawesanun, K . and Tayati, W. (2004), A Study on Renewable Energy Electrification for Remote Villages in Thailand, Technical Digest of the International PVSEC-14, Bangkok, Thailand, 2004 Tayati, W., Sriwattananukulkit, S., Tayati, D., Komolmit, T., Premrudeeprechachan, S. and Srisiriuthaiwong, Y. (2004), Influential Factors for Sustainability of PV System for Household Electrification in Remote Village, 19th European Photovoltaic Solar Energy Conference and Exhibition, 7-11 June 2004, Paris, France

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Table 4 Master Plan for The Sampled 10 Villages Renewable Energy Electrification (Listed by Village Potential Score)

No.

Village Code

Village Name

Mu

Tambon

Ampher

Province

No. of HH

Optimal System

EIRR (%)

Village Investment Potential Phase (%)

1 2 3

06061 11096 11054 11050

Hua Doi Mae Klong Yai Mae Song Khun Huai Mae Woei Mae Pae Luang

5 4 1 5 2 6 1 5 4 11

Santi Kiri Mokro Mae Song Tha Song Yang Kong Koi Sop Moei Pang Hin Fon Pa Pae Na Kian Ban Tap

Mae La Noi Umphang Tha Song Yang Tha Song Yang Sop Moei Sop Moei Mae Chaem Mae Sariang Omkoi Mae Chaem

Mae Hong Son Tak Tak Tak Mae Hong Son Mae Hong Son Chiang Mai Mae Hong Son Chiang Mai Chiang Mai

117 170 95 35 201 67 19 28 64 54

SHS HYDRO HYDRO

88.45 5.28 3.97

80.9 77.5 67.7

1 1 1 1 1 2 2 2 2 2

22.89 SHS 7.91 PV/HYDRO 1.57 PV/HYDRO 16.26 SHS 9.09 SHS 0.51 SHS 2.84 SHS 52.9 54.4 53.5 54.5 57 65.2 66.2

4 06126 5 06109 6 01055 7 06098 8 01086 9 01039 10

So Mue Mae Ngan Luang Huai Duea Bai Na Om Sung

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Table 5 Investment Masper Plan

Capacity (kW) Investment phase T otal 1 2 T otal 2,032.5 1,221.0 3,253.5 % 62.5% 37.5% 100.0% T otal 461,930,575 306,497,500 768,428,075 % 60.1% 39.9% 100.0% T otal 20,920 13,559 34,479 % 60.7% 39.3% 100.0% T otal 332 215 547 % 60.7% 39.3% 100.0% 1st year Investment (Baht) No. of Household No. of Village

Table 6 Investment Master Plan Phase 1

Investment phase 1 SHS Hydro PV/Hydro PV T otal Capacity (kW) T otal 935.0 966.0 83.1 48.4 2,032.5 % 46.0% 47.5% 4.1% 2.4% 100.0% 1st year Investment (Baht) EIRR>=12 180,261,900 24,968,000 205,229,900 8=<EIRR<12 29,582,150 8,456,000 15,529,500 53,567,650 1st year Investment (Baht) 1st year Investment (Baht) No. of Household 4=<EIRR<8 20,444,450 29,624,000 4,849,500 54,917,950 EIRR<4 49,403,575 53,088,000 24,885,500 20,838,000 148,215,075 T otal 279,692,075 116,136,000 45,264,500 20,838,000 461,930,575 % 60.5% 25.1% 9.8% 4.5% 100.0% T otal 16,104 3,802 831 484 20,920 % 76.3% 17.4% 4.0% 2.3% 100.0% No. of Village EIRR>=12 169 6 175 8=<EIRR<12 33 2 2 37 No. of Village 4=<EIRR<8 22 8 1 31 No. of Village % 84.9% 11.1% 3.0% 0.9% 100.0% EIRR<4 T otal 58 21 7 3 89 282 37 10 3 332

Table 7 Investment Master Plan Phase 2

Investment phase 1 SHS Hydro PV PV/Hydro T otal Capacity (kW) T otal 571.3 459.0 160.9 29.8 1,221.0 % 46.8% 37.6% 13.2% 2.4% 100.0% 1st year Investment (Baht) EIRR>=12 80,485,700 80,485,700 8=<EIRR<12 9,529,975 10,384,000 19,913,975 1st year Investment (Baht) 1st year Investment (Baht) No. of Household 4=<EIRR<8 14,398,800 4,728,000 4,135,500 23,262,300 EIRR<4 66,340,525 38,708,000 65,159,500 12,627,500 182,835,525 T otal 170,755,000 53,820,000 65,159,500 16,763,000 306,497,500 % 55.7% 17.6% 21.3% 5.5% 100.0% T otal 9,838 1,814 1,609 298 13,559 % 72.6% 13.4% 11.9% 2.2% 100.0% No. of Village EIRR>=12 83 83 8=<EIRR<12 10 3 13 No. of Village 4=<EIRR<8 19 1 1 21 No. of Village % 87.9% 7.0% 3.3% 1.9% 100.0% EIRR<4 T otal 77 11 7 3 98 189 15 7 4 215

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