Analysis of Costs and Emissions Related to Microgrid Electricity Generation in Mae Sariang : A Minor Field Study in Thailand

Abstract: Rural electrification serves as a tool to reach several of the United Nations Sustainable Development Goals (SDGs). However, challenges occur related to increased electricity access, involving financial, informational, technical and regulatory factors. Another issue concerning electrification is the potential climate effects that increased electricity production causes. To minimise emissions and energy losses, usage of renewable energy sources is a possible solution as well as increased decentralised electricity production. Microgrids enable both of these parts and therefore serve as a great solution to sustainably meet the increased demand of electricity. Therefore, the main purpose of this study is to investigate the potential of microgrids to sustainably contribute to an increased access to electricity. The study focuses on the electrical power situation in Thailand. The literature study covers the political strategies regarding rural electrification and implementation of renewable energy sources in Thailand’s electrical power system, and how the country is currently developing according to these strategies. The case study consists of a cost and emission analysis related to a pilot microgrid project in northern Thailand. The Provincial Electricity Authority (PEA) in Thailand initiated and built the microgrid project called Maesariang Microgrid, in MaeSariang District in the northern province Mae Hong Son. The purpose of the project was to improve reliability and quality of the power delivered to Mae Sariang District. The microgrid consists of a solar power plant, a hydro power station, diesel generators and a battery energy storage system (BESS). The results from the case study shows that implementation of the Maesariang Microgrid, in addition to power reliability and quality, resulted in both reduced cost of electricity generation (COEG) with 3 percent and carbon dioxide (CO2) emissions with 11 percent. Furthermore, emissions per generated electricity unit has reduced from 380 kg CO2 per MWhto 340 kg CO2 per MWh. By using a system model covering the current microgrid in Mae Sariang, three alternative microgrid compositions with different shares of installed renewable energy capacity were simulated in three scenarios. In these scenarios, the amount of electricity generated from the solar power plant, diesel generators and BESS varied in order to analyse the effects on emissions and COEG. The analysis displayed that an increased capacity of solar power installed, both with the current size of the BESS capacity, and with an increased BESS capacity, resulted in lower COEG and emissions. It also showed that usage of less installed solar power capacity and increased usage of diesel generators would reduce CO2 emission sper year compared to using the local grid. However, with the current price of diesel fuel and electricity from the local grid, it would result in a higher COEG.