IDEAS home Printed from https://ideas.repec.org/a/eco/journ2/2022-01-9.html
   My bibliography  Save this article

Grid-connected Electricity Generation Potential from Energy Crops: A Case Study of Marginal Land in Thailand

Author

Listed:
  • Thanarat Pratumwan

    (Energy Management Technology Program, School of Energy, Environment and Materials, King Mongkut s University of Technology Thonburi, Thung Khru, Bangkok, Thailand,)

  • Warunee Tia

    (Energy Management Technology Program, School of Energy, Environment and Materials, King Mongkut s University of Technology Thonburi, Thung Khru, Bangkok, Thailand,)

  • Adisak Nathakaranakule

    (Energy Technology Program, School of Energy, Environment and Materials, King Mongkut s University of Technology Thonburi, Thung Khru, Bangkok, Thailand.)

  • Somchart Soponronnarit

    (Energy Technology Program, School of Energy, Environment and Materials, King Mongkut s University of Technology Thonburi, Thung Khru, Bangkok, Thailand.)

Abstract

This paper provides an assessment of the geographical potential of grid-connected electricity generation from the planting of energy crops using GIS while also estimating the levelized costs of electricity (LCOE) under three biomass-prices scenarios. To avoid competition for land use between food and energy crops, marginal land or unsuitable areas (low soil fertility) were used as case study sites for planting energy crops (Napier grass). The total estimated potential based on the location of energy crops and electrical substations was 11,224 MW or 66,367 GWh/y, equivalent to approximately 26.5% of Thailand s total electricity demand in 2037. The LCOEs under the three scenarios ranged from 0.103 to 0.120 USD/kWh for a 9MW capacity power plant, which were lower than the feed-in tariff rate. The results of economic assessment under three scenarios showed positive NPV values but relatively long discounted payback periods. The project and equity IRR ranged from 11.94 to 14.04% and 24.40 to 30.89%, respectively. These findings can be used for land-use planning and energy crop promotion to increase the share of grid-power generation from biomass.

Suggested Citation

  • Thanarat Pratumwan & Warunee Tia & Adisak Nathakaranakule & Somchart Soponronnarit, 2022. "Grid-connected Electricity Generation Potential from Energy Crops: A Case Study of Marginal Land in Thailand," International Journal of Energy Economics and Policy, Econjournals, vol. 12(1), pages 62-72.
    • Handle: RePEc:eco:journ2:2022-01-9
    as

    Download full text from publisher

    File URL: http://www.econjournals.com/index.php/ijeep/article/download/11903/6190/29450
    Download Restriction: no
    File URL: http://www.econjournals.com/index.php/ijeep/article/view/11903/6190
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Lourinho, Gonçalo & Brito, Paulo, 2015. "Assessment of biomass energy potential in a region of Portugal (Alto Alentejo)," Energy, Elsevier, vol. 81(C), pages 189-201.
    2. Delivand, Mitra Kami & Barz, Mirko & Gheewala, Shabbir H., 2011. "Logistics cost analysis of rice straw for biomass power generation in Thailand," Energy, Elsevier, vol. 36(3), pages 1435-1441.
    3. Monforti, F. & Bódis, K. & Scarlat, N. & Dallemand, J.-F., 2013. "The possible contribution of agricultural crop residues to renewable energy targets in Europe: A spatially explicit study," Renewable and Sustainable Energy Reviews, Elsevier, vol. 19(C), pages 666-677.
    4. Masum, Md Farhad Hossain & Dwivedi, Puneet & Anderson, William F., 2020. "Estimating unit production cost, carbon intensity, and carbon abatement cost of electricity generation from bioenergy feedstocks in Georgia, United States," Renewable and Sustainable Energy Reviews, Elsevier, vol. 117(C).
    5. Singh, Jaswinder, 2016. "Identifying an economic power production system based on agricultural straw on regional basis in India," Renewable and Sustainable Energy Reviews, Elsevier, vol. 60(C), pages 1140-1155.
    6. Tran, Thomas T.D. & Smith, Amanda D., 2018. "Incorporating performance-based global sensitivity and uncertainty analysis into LCOE calculations for emerging renewable energy technologies," Applied Energy, Elsevier, vol. 216(C), pages 157-171.
    7. Stich, J. & Ramachandran, S. & Hamacher, T. & Stimming, U., 2017. "Techno-economic estimation of the power generation potential from biomass residues in Southeast Asia," Energy, Elsevier, vol. 135(C), pages 930-942.
    8. Sanghyun Sung & Wooyong Jung, 2019. "Economic Competitiveness Evaluation of the Energy Sources: Comparison between a Financial Model and Levelized Cost of Electricity Analysis," Energies, MDPI, vol. 12(21), pages 1-21, October.
    9. Nattanin Ueasin & Anupong Wongchai & Sakkarin Nonthapot, 2015. "Performance Assessment and Optimization of Biomass Steam Turbine Power Plants by Data Envelopment Analysis," International Journal of Energy Economics and Policy, Econjournals, vol. 5(3), pages 668-672.
    10. Steffen, Bjarne, 2020. "Estimating the cost of capital for renewable energy projects," Energy Economics, Elsevier, vol. 88(C).
    11. García-Gusano, Diego & Espegren, Kari & Lind, Arne & Kirkengen, Martin, 2016. "The role of the discount rates in energy systems optimisation models," Renewable and Sustainable Energy Reviews, Elsevier, vol. 59(C), pages 56-72.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pagnini, Luisa & Bracco, Stefano & Delfino, Federico & de-Simón-Martín, Miguel, 2024. "Levelized cost of electricity in renewable energy communities: Uncertainty propagation analysis," Applied Energy, Elsevier, vol. 366(C).
    2. Nandimandalam, Hariteja & Gude, Veera Gnaneswar, 2022. "Renewable wood residue sources as potential alternative for fossil fuel dominated electricity mix for regions in Mississippi: A techno-economic analysis," Renewable Energy, Elsevier, vol. 200(C), pages 1105-1119.
    3. Jiqin Ren & Peixian Yu & Xiaohong Xu, 2019. "Straw Utilization in China—Status and Recommendations," Sustainability, MDPI, vol. 11(6), pages 1-17, March.
    4. Christoforou, Elias & Kylili, Angeliki & Fokaides, Paris A., 2016. "Technical and economical evaluation of olive mills solid waste pellets," Renewable Energy, Elsevier, vol. 96(PA), pages 33-41.
    5. Ryszard Bartnik & Dariusz Pączko, 2021. "Methodology for Analysing Electricity Generation Unit Costs in Renewable Energy Sources (RES)," Energies, MDPI, vol. 14(21), pages 1-15, November.
    6. M. Calcaterra & L. Aleluia Reis & P. Fragkos & T. Briera & H. S. Boer & F. Egli & J. Emmerling & G. Iyer & S. Mittal & F. H. J. Polzin & M. W. J. L. Sanders & T. S. Schmidt & A. Serebriakova & B. Stef, 2024. "Reducing the cost of capital to finance the energy transition in developing countries," Nature Energy, Nature, vol. 9(10), pages 1241-1251, October.
    7. Algieri, Angelo & Andiloro, Serafina & Tamburino, Vincenzo & Zema, Demetrio Antonio, 2019. "The potential of agricultural residues for energy production in Calabria (Southern Italy)," Renewable and Sustainable Energy Reviews, Elsevier, vol. 104(C), pages 1-14.
    8. Hickey, Conor & O'Brien, John & Caldecott, Ben & McInerney, Celine & Ó Gallachóir, Brian, 2021. "Can European electric utilities manage asset impairments arising from net zero carbon targets?," Journal of Corporate Finance, Elsevier, vol. 70(C).
    9. Al-Hamamre, Zayed & Saidan, Motasem & Hararah, Muhanned & Rawajfeh, Khaled & Alkhasawneh, Hussam E. & Al-Shannag, Mohammad, 2017. "Wastes and biomass materials as sustainable-renewable energy resources for Jordan," Renewable and Sustainable Energy Reviews, Elsevier, vol. 67(C), pages 295-314.
    10. Majd Olleik & Hassan Hamie & Hans Auer, 2022. "Using Natural Gas Resources to De-Risk Renewable Energy Investments in Lower-Income Countries," Energies, MDPI, vol. 15(5), pages 1-22, February.
    11. Shafie, S.M. & Mahlia, T.M.I. & Masjuki, H.H., 2013. "Life cycle assessment of rice straw co-firing with coal power generation in Malaysia," Energy, Elsevier, vol. 57(C), pages 284-294.
    12. Shirzad, Mohammad & Kazemi Shariat Panahi, Hamed & Dashti, Behrouz B. & Rajaeifar, Mohammad Ali & Aghbashlo, Mortaza & Tabatabaei, Meisam, 2019. "A comprehensive review on electricity generation and GHG emission reduction potentials through anaerobic digestion of agricultural and livestock/slaughterhouse wastes in Iran," Renewable and Sustainable Energy Reviews, Elsevier, vol. 111(C), pages 571-594.
    13. Kim, Amy M. & Li, Huanan, 2020. "Incorporating the impacts of climate change in transportation infrastructure decision models," Transportation Research Part A: Policy and Practice, Elsevier, vol. 134(C), pages 271-287.
    14. Gumber, Anurag & Zana, Riccardo & Steffen, Bjarne, 2024. "A global analysis of renewable energy project commissioning timelines," Applied Energy, Elsevier, vol. 358(C).
    15. Ba, Birome Holo & Prins, Christian & Prodhon, Caroline, 2016. "Models for optimization and performance evaluation of biomass supply chains: An Operations Research perspective," Renewable Energy, Elsevier, vol. 87(P2), pages 977-989.
    16. Sharma, Rajesh & Shahbaz, Muhammad & Sinha, Avik & Vo, Xuan Vinh, 2021. "Examining the temporal impact of stock market development on carbon intensity: Evidence from South Asian countries," MPRA Paper 108925, University Library of Munich, Germany, revised 2021.
    17. Luiz Moreira Coelho Junior & Amadeu Junior da Silva Fonseca & Roberto Castro & João Carlos de Oliveira Mello & Victor Hugo Ribeiro dos Santos & Renato Barros Pinheiro & Wilton Lima Sousa & Edvaldo Per, 2022. "Empirical Evidence of the Cost of Capital under Risk Conditions for Thermoelectric Power Plants in Brazil," Energies, MDPI, vol. 15(12), pages 1-12, June.
    18. Eric, Aleksandar & Dakic, Dragoljub & Nemoda, Stevan & Komatina, Mirko & Repic, Branislav, 2012. "Experimental determination thermo physical characteristics of balled biomass," Energy, Elsevier, vol. 45(1), pages 350-357.
    19. Abadie, Luis Mª & Chamorro, José M., 2023. "Investment in wind-based hydrogen production under economic and physical uncertainties," Applied Energy, Elsevier, vol. 337(C).
    20. Lohan, Shiv Kumar & Jat, H.S. & Yadav, Arvind Kumar & Sidhu, H.S. & Jat, M.L. & Choudhary, Madhu & Peter, Jyotsna Kiran & Sharma, P.C., 2018. "Burning issues of paddy residue management in north-west states of India," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P1), pages 693-706.

    More about this item

    Keywords

    Economic Analysis; Energy Crops; Geographic Information System; Grid Connection; Marginal Land; Power Generation Potential;
    All these keywords.

    JEL classification:

    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ2:2022-01-9. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.