The Financial Feasibility Study of the Provincial Electricity Authority’s Net-Zero Energy Office Buildings Development Project

Abstract

The purposes of this research were 1) to study the financial feasibility of the net zero energy office buildings development project of Provincial Electricity Authority (PEA) and 2) to analyze the potentials and the strengths/weaknesses of the project on 16 locations certified as Green Offices.  The qualitative study was conducted through in-depth interviewing with 19 officials. At 8.14% discount rate for 25 years, the net present value of -13,876,306.96 baht and the benefit-cost ratio of 0.82 are obtained, indicating the project could not be worth investing.  Based on the sensibility analysis, if the costs of equipment and expenditure can be reduced by 20%, the investment will be worthy.  Potential analysis results in low potential of the project corresponding to the financial analysis in the same direction.  Strength is already-established electricity equipment.  Main threat is high investment cost on energy conservation and renewable energy facilities.  In conclusion, based on the financial and the potential analysis, the project may not be invested because the equipment and expenditure costs could be higher than the incomes or the profits of the project.