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Rural area power supply in Nigeria: A cost comparison of the photovoltaic, diesel/gasoline generator and grid utility options

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  • Oparaku, O.U.

Abstract

A large proportion of the population of Nigeria reside in the rural communities. In this work, the financial costs of providing centralized (photovoltaic) PV generating system of various capacities—to satisfy different load requirements—in a remote village in Nigeria is compared with the cost of grid extension over a distance of 1.8 km. Comparison is also made with the centralised diesel generator power supply option. In addition, the costs of decentralised PV home systems are compared with those of decentralised gasoline generator systems. For all the systems, the initial capital costs and the life cycle costs over a 20-year life cycle are reported. Sensitivity analysis was performed using variations in module costs, diesel fuel prices and grid extension distance. The results suggest that PV has a remarkable potential as a cost-effective option for low-power electrical energy supply to the rural communities in the country.

Suggested Citation

  • Oparaku, O.U., 2003. "Rural area power supply in Nigeria: A cost comparison of the photovoltaic, diesel/gasoline generator and grid utility options," Renewable Energy, Elsevier, vol. 28(13), pages 2089-2098.
    • Handle: RePEc:eee:renene:v:28:y:2003:i:13:p:2089-2098
    DOI: 10.1016/S0960-1481(03)00009-0
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    1. Banerjee, Avishek & Tierney, Michael. J. & Thorpe, Roger. N., 2012. "Thermoeconomics, cost benefit analysis, and a novel way of dealing with revenue generating dissipative units applied to candidate decentralised energy systems for Indian rural villages," Energy, Elsevier, vol. 43(1), pages 477-488.
    2. Wang, Richard & Lam, Chor-Man & Hsu, Shu-Chien & Chen, Jieh-Haur, 2019. "Life cycle assessment and energy payback time of a standalone hybrid renewable energy commercial microgrid: A case study of Town Island in Hong Kong," Applied Energy, Elsevier, vol. 250(C), pages 760-775.
    3. Bandar Jubran Alqahtani & Dalia Patino-Echeverri, 2023. "Identifying Economic and Clean Strategies to Provide Electricity in Remote Rural Areas: Main-Grid Extension vs. Distributed Electricity Generation," Energies, MDPI, vol. 16(2), pages 1-18, January.
    4. Abhi Chatterjee & Daniel Burmester & Alan Brent & Ramesh Rayudu, 2019. "Research Insights and Knowledge Headways for Developing Remote, Off-Grid Microgrids in Developing Countries," Energies, MDPI, vol. 12(10), pages 1-19, May.
    5. Ugwoke, B. & Gershon, O. & Becchio, C. & Corgnati, S.P. & Leone, P., 2020. "A review of Nigerian energy access studies: The story told so far," Renewable and Sustainable Energy Reviews, Elsevier, vol. 120(C).
    6. Aklin, Michaël & Harish, S.P. & Urpelainen, Johannes, 2018. "A global analysis of progress in household electrification," Energy Policy, Elsevier, vol. 122(C), pages 421-428.
    7. Kaundinya, Deepak Paramashivan & Balachandra, P. & Ravindranath, N.H., 2009. "Grid-connected versus stand-alone energy systems for decentralized power--A review of literature," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(8), pages 2041-2050, October.
    8. Adesanya, Adewale A. & Pearce, Joshua M., 2019. "Economic viability of captive off-grid solar photovoltaic and diesel hybrid energy systems for the Nigerian private sector," Renewable and Sustainable Energy Reviews, Elsevier, vol. 114(C), pages 1-1.
    9. Chaurey, Akanksha & Kandpal, Tara Chandra, 2010. "Assessment and evaluation of PV based decentralized rural electrification: An overview," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(8), pages 2266-2278, October.
    10. Banerjee, A. & Tierney, M., 2011. "Comparison of five exergoenvironmental methods applied to candidate energy systems for rural villages in developing countries," Energy, Elsevier, vol. 36(5), pages 2650-2661.
    11. Oladokun, V.O. & Asemota, O.C., 2015. "Unit cost of electricity in Nigeria: A cost model for captive diesel powered generating system," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 35-40.
    12. Mandelli, Stefano & Barbieri, Jacopo & Mereu, Riccardo & Colombo, Emanuela, 2016. "Off-grid systems for rural electrification in developing countries: Definitions, classification and a comprehensive literature review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 58(C), pages 1621-1646.
    13. Mainali, Brijesh & Silveira, Semida, 2013. "Alternative pathways for providing access to electricity in developing countries," Renewable Energy, Elsevier, vol. 57(C), pages 299-310.
    14. Cloutier, Michael & Rowley, Paul, 2011. "The feasibility of renewable energy sources for pumping clean water in sub-Saharan Africa: A case study for Central Nigeria," Renewable Energy, Elsevier, vol. 36(8), pages 2220-2226.
    15. Sanaye, Sepehr & Sarrafi, Ahmadreza, 2015. "Optimization of combined cooling, heating and power generation by a solar system," Renewable Energy, Elsevier, vol. 80(C), pages 699-712.
    16. Giwa, Adewale & Alabi, Adetunji & Yusuf, Ahmed & Olukan, Tuza, 2017. "A comprehensive review on biomass and solar energy for sustainable energy generation in Nigeria," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 620-641.
    17. Dugoua, Eugenie & Liu, Ruinan & Urpelainen, Johannes, 2017. "Geographic and socio-economic barriers to rural electrification: New evidence from Indian villages," Energy Policy, Elsevier, vol. 106(C), pages 278-287.
    18. Akinyele, Daniel O. & Rayudu, Ramesh K., 2016. "Techno-economic and life cycle environmental performance analyses of a solar photovoltaic microgrid system for developing countries," Energy, Elsevier, vol. 109(C), pages 160-179.
    19. Roy, Apratim & Kabir, Md. Ashfanoor, 2012. "Relative life cycle economic analysis of stand-alone solar PV and fossil fuel powered systems in Bangladesh with regard to load demand and market controlling factors," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(7), pages 4629-4637.
    20. Trotter, Philipp A. & McManus, Marcelle C. & Maconachie, Roy, 2017. "Electricity planning and implementation in sub-Saharan Africa: A systematic review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 74(C), pages 1189-1209.
    21. Nfah, E.M. & Ngundam, J.M. & Vandenbergh, M. & Schmid, J., 2008. "Simulation of off-grid generation options for remote villages in Cameroon," Renewable Energy, Elsevier, vol. 33(5), pages 1064-1072.
    22. Heinemann, G. & Banzer, F. & Dumitrescu, R. & Hirschhausen, C.v. & Neuhoff, M.E. & Ogechi Nwadiaru, V., 2022. "Transforming electricity access by replacing back-up generators with solar systems: Recent trends and evidence from Nigeria," Renewable and Sustainable Energy Reviews, Elsevier, vol. 157(C).

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