An Analysis of the Impacts of Solar Electricity Generation on the Electricity Industry for Thailand

Abstract

This paper provides an analysis of the impacts of solar electricity generation on the electricity industry for Thailand. In this paper, three scenarios (REF, Solar2015 and Solar2018) are developed to represent an increased levels of electricity produced from solar energy. A Low Emissions Analysis Platform (LEAP) model is employed in this paper to assess the impacts for the period 2019-2037. This paper assesses the scenario impacts in terms of diversification of electricity generation, generation technology mix, primary energy requirement and CO2 emissions. The analysis reveals that greater role of solar energy in the electricity generation would have positive impacts on the Thai electricity generation from several aspects including improving the diversification of primary energy supply for electricity generation, reducing fossil fuel consumptions for power production, less reliance on fossil fuel sources and environmentally friendly electricity generation. For example, 20% share of solar in fuel mix for power generation would result in a 17% reduction in fossil fuel consumption. Furthermore, it would contribute to a 16% decrease in CO2 emissions and 28% reduction in SO2 emissions. Despite several benefits, there are a number of emerging barriers for promoting solar based electricity generation in Thailand. These include inefficient and unreliable nature of solar energy for baseload electricity demand, high-initial cost, unsupportable grid infrastructure and unfavourable regulatory framework. This paper, therefore, recommends that development of energy storage technologies, improvement of grid flexibility and the revision of the regulations to support solar energy business could be effective strategies in order to address the barriers facing the Thai electricity industry.