IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v12y2019i22p4311-d286145.html
   My bibliography  Save this article

A Novel Framework for Cost Optimization of Renewable Energy Installations: A Case Study of Nigeria

Author

Listed:
  • Aliyu Aliyu

    (Energy Systems Engineering Program, Cyprus International University, Nicosia, Mersin 10, Turkey)

  • Neyre Tekbiyik-Ersoy

    (Energy Systems Engineering Program, Cyprus International University, Nicosia, Mersin 10, Turkey)

Abstract

The merits of utilizing renewable energy sources (RESs) in electricity generation, especially in the developing countries, are to improve the electricity access, economic development and energy sustainability. Nigeria is a developing country with an acute electricity problem. The country is blessed with rich renewable energy (RE) resources. However, most of these resources are yet to be exploited. A look at the energy sector in Nigeria suggests that for the country to be energy sufficient, it must embrace domestic RESs in its energy mix. However, RE technologies are capital intensive. Hence, by using Nigeria as a motivation, this study aims at developing a general framework that can be used for any country or region in determining the optimal total capacities of RESs to be installed in different locations, to increase the use of RE in a cost-effective manner. The designed optimization problem aims to minimize the total cost of installing RE technologies while satisfying some predetermined constraints that include demand and supply, RE potential, area and system reserve requirement. To this end, three different scenarios, namely prospective off-grid, on-grid, and all-off-grid are introduced. The first scenario aims at finding the optimal cost of installing RESs in order to improve electricity access at each off-grid installation location (a distribution company (DISCO) location with electricity access level below 50%). The second scenario optimizes cost of installing RESs for on-grid installation locations (DISCO locations (DLs) with electricity access level of 50% and above). The third scenario finds the optimal cost of installing off-grid RESs for all the DLs. Linear optimization technique is used to solve the problem. The results show that the total installation costs of the first and second scenarios (which means having off-grid installations for some DLs and having on-grid installations for other DLs) are $97.46 billion and $114.03 billion respectively, with a total cost of $211.49 billion. On the other hand, the result of third installation scenario (only off-grid installations for all DLs), is found to be $244.33 billion. These results reveal that the combination of off-grid and on-grid installations (first and second scenarios) has the minimum installation cost, for the case study of Nigeria. As the framework presented in this study is used to provide the minimum RE related total installation cost and related RE planning in Nigeria, it can also be useful for other countries or regions considering RE planning.

Suggested Citation

  • Aliyu Aliyu & Neyre Tekbiyik-Ersoy, 2019. "A Novel Framework for Cost Optimization of Renewable Energy Installations: A Case Study of Nigeria," Energies, MDPI, vol. 12(22), pages 1-26, November.
    • Handle: RePEc:gam:jeners:v:12:y:2019:i:22:p:4311-:d:286145
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/12/22/4311/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/12/22/4311/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Brear, M.J. & Jeppesen, M. & Chattopadhyay, D. & Manzie, C. & Alpcan, T. & Dargaville, R., 2016. "Least cost, utility scale abatement from Australia's NEM (National Electricity Market). Part 2: Scenarios and policy implications," Energy, Elsevier, vol. 101(C), pages 621-628.
    2. Deshmukh, S.S. & Deshmukh, M.K., 2009. "A new approach to micro-level energy planning--A case of northern parts of Rajasthan, India," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(3), pages 634-642, April.
    3. Iniyan, S & Sumathy, K, 2000. "An optimal renewable energy model for various end-uses," Energy, Elsevier, vol. 25(6), pages 563-575.
    4. Nasser Yimen & Oumarou Hamandjoda & Lucien Meva’a & Benoit Ndzana & Jean Nganhou, 2018. "Analyzing of a Photovoltaic/Wind/Biogas/Pumped-Hydro Off-Grid Hybrid System for Rural Electrification in Sub-Saharan Africa—Case Study of Djoundé in Northern Cameroon," Energies, MDPI, vol. 11(10), pages 1-30, October.
    5. Kanase-Patil, A.B. & Saini, R.P. & Sharma, M.P., 2010. "Integrated renewable energy systems for off grid rural electrification of remote area," Renewable Energy, Elsevier, vol. 35(6), pages 1342-1349.
    6. Silva Herran, Diego & Nakata, Toshihiko, 2012. "Design of decentralized energy systems for rural electrification in developing countries considering regional disparity," Applied Energy, Elsevier, vol. 91(1), pages 130-145.
    7. Arnette, Andrew & Zobel, Christopher W., 2012. "An optimization model for regional renewable energy development," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(7), pages 4606-4615.
    8. Oyedepo, Sunday Olayinka, 2014. "Towards achieving energy for sustainable development in Nigeria," Renewable and Sustainable Energy Reviews, Elsevier, vol. 34(C), pages 255-272.
    9. Sharafi, Masoud & ElMekkawy, Tarek Y. & Bibeau, Eric L., 2015. "Optimal design of hybrid renewable energy systems in buildings with low to high renewable energy ratio," Renewable Energy, Elsevier, vol. 83(C), pages 1026-1042.
    10. Gujba, H. & Mulugetta, Y. & Azapagic, A., 2011. "Power generation scenarios for Nigeria: An environmental and cost assessment," Energy Policy, Elsevier, vol. 39(2), pages 968-980, February.
    11. Oseni, Musiliu O., 2012. "Improving households’ access to electricity and energy consumption pattern in Nigeria: Renewable energy alternative," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(6), pages 3967-3974.
    12. Ajayi, Oluseyi O., 2009. "Assessment of utilization of wind energy resources in Nigeria," Energy Policy, Elsevier, vol. 37(2), pages 750-753, February.
    13. Shaaban, Mohamed & Petinrin, J.O., 2014. "Renewable energy potentials in Nigeria: Meeting rural energy needs," Renewable and Sustainable Energy Reviews, Elsevier, vol. 29(C), pages 72-84.
    14. Ferrer-Martí, L. & Domenech, B. & García-Villoria, A. & Pastor, R., 2013. "A MILP model to design hybrid wind–photovoltaic isolated rural electrification projects in developing countries," European Journal of Operational Research, Elsevier, vol. 226(2), pages 293-300.
    15. Niknam, Taher & Taheri, Seyed Iman & Aghaei, Jamshid & Tabatabaei, Sajad & Nayeripour, Majid, 2011. "A modified honey bee mating optimization algorithm for multiobjective placement of renewable energy resources," Applied Energy, Elsevier, vol. 88(12), pages 4817-4830.
    16. Ohunakin, Olayinka S. & Ojolo, Sunday J. & Ajayi, Oluseyi O., 2011. "Small hydropower (SHP) development in Nigeria: An assessment," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(4), pages 2006-2013, May.
    17. Roula Inglesi-Lotz, James Blignaut, 2011. "Estimating the price elasticity for demand for electricity by sector in South Africa," South African Journal of Economic and Management Sciences, University of Pretoria, Faculty of Economic and Management Sciences, vol. 14(4), pages 449-465, December.
    18. Hafez, Omar & Bhattacharya, Kankar, 2012. "Optimal planning and design of a renewable energy based supply system for microgrids," Renewable Energy, Elsevier, vol. 45(C), pages 7-15.
    19. Ohunakin, Olayinka S. & Adaramola, Muyiwa S. & Oyewola, Olanrewaju. M. & Fagbenle, Richard O., 2014. "Solar energy applications and development in Nigeria: Drivers and barriers," Renewable and Sustainable Energy Reviews, Elsevier, vol. 32(C), pages 294-301.
    20. Jeppesen, M. & Brear, M.J. & Chattopadhyay, D. & Manzie, C. & Dargaville, R. & Alpcan, T., 2016. "Least cost, utility scale abatement from Australia's NEM (National Electricity Market). Part 1: Problem formulation and modelling," Energy, Elsevier, vol. 101(C), pages 606-620.
    21. Khan, Faizan A. & Pal, Nitai & Saeed, Syed.H., 2018. "Review of solar photovoltaic and wind hybrid energy systems for sizing strategies optimization techniques and cost analysis methodologies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 92(C), pages 937-947.
    22. Mohammed, Y.S. & Mustafa, M.W. & Bashir, N. & Mokhtar, A.S., 2013. "Renewable energy resources for distributed power generation in Nigeria: A review of the potential," Renewable and Sustainable Energy Reviews, Elsevier, vol. 22(C), pages 257-268.
    23. Aliyu, Abubakar Sadiq & Dada, Joseph O. & Adam, Ibrahim Khalil, 2015. "Current status and future prospects of renewable energy in Nigeria," Renewable and Sustainable Energy Reviews, Elsevier, vol. 48(C), pages 336-346.
    24. Senjyu, Tomonobu & Hayashi, Daisuke & Yona, Atsushi & Urasaki, Naomitsu & Funabashi, Toshihisa, 2007. "Optimal configuration of power generating systems in isolated island with renewable energy," Renewable Energy, Elsevier, vol. 32(11), pages 1917-1933.
    25. Ibitoye, F.I. & Adenikinju, A., 2007. "Future demand for electricity in Nigeria," Applied Energy, Elsevier, vol. 84(5), pages 492-504, May.
    26. Brew-Hammond, Abeeku, 2010. "Energy access in Africa: Challenges ahead," Energy Policy, Elsevier, vol. 38(5), pages 2291-2301, May.
    27. Ohunakin, O.S. & Adaramola, M.S. & Oyewola, O.M., 2011. "Wind energy evaluation for electricity generation using WECS in seven selected locations in Nigeria," Applied Energy, Elsevier, vol. 88(9), pages 3197-3206.
    28. Li, Chun-Hua & Zhu, Xin-Jian & Cao, Guang-Yi & Sui, Sheng & Hu, Ming-Ruo, 2009. "Dynamic modeling and sizing optimization of stand-alone photovoltaic power systems using hybrid energy storage technology," Renewable Energy, Elsevier, vol. 34(3), pages 815-826.
    29. Ozoegwu, C.G. & Mgbemene, C.A. & Ozor, P.A., 2017. "The status of solar energy integration and policy in Nigeria," Renewable and Sustainable Energy Reviews, Elsevier, vol. 70(C), pages 457-471.
    30. Milan, Christian & Bojesen, Carsten & Nielsen, Mads Pagh, 2012. "A cost optimization model for 100% renewable residential energy supply systems," Energy, Elsevier, vol. 48(1), pages 118-127.
    31. Okoye, Chiemeka Onyeka & Taylan, Onur & Baker, Derek K., 2016. "Solar energy potentials in strategically located cities in Nigeria: Review, resource assessment and PV system design," Renewable and Sustainable Energy Reviews, Elsevier, vol. 55(C), pages 550-566.
    32. Ho, W.S. & Hashim, H. & Lim, J.S., 2014. "Integrated biomass and solar town concept for a smart eco-village in Iskandar Malaysia (IM)," Renewable Energy, Elsevier, vol. 69(C), pages 190-201.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Akbas, Beste & Kocaman, Ayse Selin & Nock, Destenie & Trotter, Philipp A., 2022. "Rural electrification: An overview of optimization methods," Renewable and Sustainable Energy Reviews, Elsevier, vol. 156(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Daniel Akinyele & Juri Belikov & Yoash Levron, 2018. "Challenges of Microgrids in Remote Communities: A STEEP Model Application," Energies, MDPI, vol. 11(2), pages 1-35, February.
    2. 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).
    3. 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.
    4. Aliyu, Abubakar Sadiq & Dada, Joseph O. & Adam, Ibrahim Khalil, 2015. "Current status and future prospects of renewable energy in Nigeria," Renewable and Sustainable Energy Reviews, Elsevier, vol. 48(C), pages 336-346.
    5. Okoye, Chiemeka Onyeka & Bahrami, Arian & Atikol, Ugur, 2018. "Evaluating the solar resource potential on different tracking surfaces in Nigeria," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P1), pages 1569-1581.
    6. Okoye, Chiemeka Onyeka & Taylan, Onur & Baker, Derek K., 2016. "Solar energy potentials in strategically located cities in Nigeria: Review, resource assessment and PV system design," Renewable and Sustainable Energy Reviews, Elsevier, vol. 55(C), pages 550-566.
    7. Ozoegwu, C.G. & Mgbemene, C.A. & Ozor, P.A., 2017. "The status of solar energy integration and policy in Nigeria," Renewable and Sustainable Energy Reviews, Elsevier, vol. 70(C), pages 457-471.
    8. Siddaiah, Rajanna & Saini, R.P., 2016. "A review on planning, configurations, modeling and optimization techniques of hybrid renewable energy systems for off grid applications," Renewable and Sustainable Energy Reviews, Elsevier, vol. 58(C), pages 376-396.
    9. Bahrami, Arian & Okoye, Chiemeka Onyeka & Atikol, Ugur, 2017. "Technical and economic assessment of fixed, single and dual-axis tracking PV panels in low latitude countries," Renewable Energy, Elsevier, vol. 113(C), pages 563-579.
    10. Ogunmodimu, Olumide & Okoroigwe, Edmund C., 2019. "Solar thermal electricity in Nigeria: Prospects and challenges," Energy Policy, Elsevier, vol. 128(C), pages 440-448.
    11. Brimmo, Ayoola T. & Sodiq, Ahmed & Sofela, Samuel & Kolo, Isa, 2017. "Sustainable energy development in Nigeria: Wind, hydropower, geothermal and nuclear (Vol. 1)," Renewable and Sustainable Energy Reviews, Elsevier, vol. 74(C), pages 474-490.
    12. 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.
    13. Dada, Joseph O., 2014. "Towards understanding the benefits and challenges of Smart/Micro-Grid for electricity supply system in Nigeria," Renewable and Sustainable Energy Reviews, Elsevier, vol. 38(C), pages 1003-1014.
    14. Okoye, Chiemeka Onyeka & Taylan, Onur, 2017. "Performance analysis of a solar chimney power plant for rural areas in Nigeria," Renewable Energy, Elsevier, vol. 104(C), pages 96-108.
    15. Adewuyi, Adeolu O., 2016. "Determinants of import demand for non-renewable energy (petroleum) products: Empirical evidence from Nigeria," Energy Policy, Elsevier, vol. 95(C), pages 73-93.
    16. Oyedepo, Sunday Olayinka, 2014. "Towards achieving energy for sustainable development in Nigeria," Renewable and Sustainable Energy Reviews, Elsevier, vol. 34(C), pages 255-272.
    17. Elum, Z.A. & Momodu, A.S., 2017. "Climate change mitigation and renewable energy for sustainable development in Nigeria: A discourse approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 76(C), pages 72-80.
    18. Owebor, K. & Diemuodeke, E.O. & Briggs, T.A. & Imran, M., 2021. "Power Situation and renewable energy potentials in Nigeria – A case for integrated multi-generation technology," Renewable Energy, Elsevier, vol. 177(C), pages 773-796.
    19. Perera, A.T.D. & Attalage, R.A. & Perera, K.K.C.K. & Dassanayake, V.P.C., 2013. "Designing standalone hybrid energy systems minimizing initial investment, life cycle cost and pollutant emission," Energy, Elsevier, vol. 54(C), pages 220-230.
    20. Goel, Sonali & Sharma, Renu, 2017. "Performance evaluation of stand alone, grid connected and hybrid renewable energy systems for rural application: A comparative review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 78(C), pages 1378-1389.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jeners:v:12:y:2019:i:22:p:4311-:d:286145. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.