A FEASIBILITY STUDY OF INVESTMENT ON ELECTRICITY POWER FROM WIND TURBINE OF HOUSEHOLD

Abstract

A Feasibility Study of Investment on Electricity Power from Wind Turbine of Household aims to (1) To determine the areas that are suitable for the installation of wind turbines to generate electricity in the household (2) To study the technical and alternative of investment to install wind turbines to generate electricity in the household (3) To study the feasibility of financial investment in installing wind turbines to generate electricity in the household sector (4) To study the purchase price model Feed-in Tariff (FiT) suitable for investment by the government to install wind turbines to generate electricity in the household sector. The study was conducted by collecting primary data from participant observation and in-depth interviews from 3 experts on wind turbines for electricity production. For secondary data, they have been collected from technical papers, related research and websites. Data were analyzed using descriptive and quantitative methods. Financial instruments being used include the followings: Net Present Value (NPV), Internal Rate of Return (IRR), Modified Internal Rate of Return (MIRR), Profitability Index (PI) and Switching Value Test (SVT). The study found that the southern and eastern sea coasts have the potential to produce electricity from wind. The technical study found that areas with a wind speed between 2 and 5 meter per second (m/s) should install wind turbine size 200 watts, areas with a wind speed between 5 and 7 m/s should install wind turbine size 500 watts and areas with a wind speed between 7 and 12 m/s should install wind turbine size 1000 watts. The feasibility study on investment project has the following assumptions: the project lasts 20 years, Weighted Average Cost of Capital (WACC) at 6.58% and Personal Income Tax rate at 0%. The case that was supported by the Government in Feed-in-Tariff rate at 6.06%. The study concluded that wind turbine size 200 Watts is not worth the investment. Despite wind turbine sizes 500 Watts and 1000 Watts, they are feasible for investment. For the case of no support by the Government in Feed-in-Tariff rate, the value of electrical energy equals to 4.4217 baht per unit, the variable rate equals 0.34 baht per unit and VAT rate is 7.00%. The study concluded that wind turbine size 200 Watts is not worth the investment, while wind turbine sizes 500 Watts and 1000 Watts are feasible for investment.