Feasibility Study of Using Oil Palm and Coconut Fronds for Electricity Generation

Abstract

Nowadays, agricultural residues,including oil palm and coconut fronds in Thailand are still not much utilized. This research therefore studied the feasibility of using oil palm and coconut fronds for generating electricity. Phun Phin, the high oil palm and coconut plantation area, in Surat Thani province, was used as the case study for power plant installation. Three sizes of power plant having the capacities of 5, 7 and 9 MW, which used stoker boiler with steam turbines, were considered in this research as the very small power producers. The results showed that the amount of coconut frond residues in this area was not enough for 5-MW power generation; the residues were also quite difficult to collect. On the other hand, the oil palm frond residues had potential for 9-MW power generation within the transportation distance of less than 15 kilometers. At the fuel price (including transportation cost) of 1,000 Baht/ton oil palm frond residues with moisture content of 33.3% w.b., the levelized unit cost of generating electricity of 5, 7 and 9 MW at 10 to 12% discounted rate was in the range of 4.12 to 4.24, 4.07 to 4.19 and 4.00 to 4.12 Baht/kWh, respectively. These values were higher than the current buyback rate of biomass power. With the normal rate of return on investment (10% - 12%), the incentive buyback rate should be in the range of 5.160 – 5.337 and 4.345 – 4.519 Baht/kWh for 7 and 20 years of contract periods, respectively