Subject: solar power
The Nation,
Friday, March 21

Govt policy puts solar power source in the shade

   Experts' seek financial incentives for exploitation

   JAMES FAHN

   WITH the price of solar cells steadily decreasing, experts yesterday
   called on the government to provide incentives for Thais to install
   solar panels on their roofs.

   Currently, however, the development of solar power is hampered in
   Thailand because the government provides huge subsidies for extending
   the national electricity grid.

   Despite Thailand's abundant sunshine, photovoltaic cells  which
   convert sunlight into electricity without creating pollution
   produced only about 2.5 megawatts (MW) of power by the end of 1996, according
   to Prof Krissanapong Kirtikara, dean of industrial engineering at the

   King Mongkut's Institute of Technology in Thonburi. By comparison,
   Thailand's total energy demand during peak hours last year was more
   than 13,300 MW.

   Other countries such as Japan, Germany, Switzerland and the United
   States are already subsidising the use of photovoltaic panels in
   individual homes for environmental reasons, added Chaya Jivacate,
   head of research and development for the Electricity Generating Authority
   of Thailand.

   Both Chaya and Krissanapong called on the National Energy Policy
   Office to provide similar incentives in Thailand by providing loans
   for capital costs and allowing the purchase of energy from rooftop
   solar cells for the national electricity grid.

   Krissanapong estimated that it will be another 10 years or so before
   photovoltaic cells can directly compete on price terms with other
   electricity sources no matter the location, but in remote areas,
   where it is expensive to hook houses up to the national electricity grid,
   solar power is already cheaper than power attained from diesel
   generators.

   ''At today's investment cost of Bt200 to Bt300 per watt,
   photovoltaics [are] already competitive with diesel generating systems for most
   small applications in remote areas," said Chaya, who spoke at a
   seminar on the use of solar energy in the Mekong region.

   Photovoltaic cells cost as little as US$3 (Bt78) per watt in the US,
   he said, but import duties make them expensive in Thailand, where
   there are three local assemblers.

   Even at a cost of Bt300/watt, however, Chaya showed analysis which
   indicated that solar power will generally be cheaper than diesel
   power for any village which uses 8,000 kilowatt-hours per year or less
   roughly equal to the electricity used by about 20 houses without air
   conditioning.

   Accordingly, said Krissanapong, state agencies such as the Department
   of Public Works, the Department of Energy Development and Promotion
   and the Telephone Organisation of Thailand have used solar cells to
   run water pumps, battery-charging stations and telephone outlets in
   remote villages.

   By the end of last year, he said, residents of more than 800 villages
   half of them in the Northeast  could charge up their batteries at
   photovoltaic stations, and another 619 villages  90 per cent of them
   in the Northeast  had solar-powered water pumps. The Royal Forestry
   Department has also built solar arrays in Tarutao National Park and
   on Phu Kradung, Krissanapong said.

   The New Energy and Industrial Technology Development Organisation, a
   Japanese non-governmental organisation which sponsored yesterday's
   seminar, wants to expand on solar power's cost advantages in rural
   areas by promoting ''zero-emission villages", not just in Thailand
   but around the world. But such projects are typically hampered by
   government subsidies for conventional power sources.

   ''The Thai government has a long-standing policy to heavily subsidise
   rural electrification by extending the national electricity grid,"
   explained Chaya, ''so the Provincial Electricity Authority prefers to
   connect villages to the grid, which makes the use of photovoltaic
   cells uncompetitive."

   Krissanapong argued that it is time for solar power to move away from
   public funding sources and move towards private consumer use  for
   instance, establishing a system of rooftop photovoltaic cells
   connected to the grid.

   The government would still have to provide some kind of economic
   incentive: Krissanapong suggested that the government agree to
   purchase electricity from rooftop solar cells at peak hours during
   the day. This policy would help reduce pollution, boost the production of
   solar cells thus bringing down costs, and provide training for the
   time when solar power becomes genuinely cost-effective, and thus more
   widespread.

   He estimated that electricity during peak hours in Thailand costs
   about Bt5 to Bt6 per unit, while photovoltaic cells, amortised over
   20 years, would provide electricity at a cost of about Bt8 to Bt9 per unit.

   ''The government could pay for 50 per cent of the investment cost of
   installing rooftop photovoltaic cells, and buy back the electricity
   at  a good price," suggested Chaya. ''Japan, Germany and Switzerland have
   programmes like this for environmental reasons. Thailand should do
   the same."
  1