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Prospective Life Cycle Costing of Electricity Generation from Municipal Solid Waste in Nigeria

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  • Oluwaseun Nubi

    (Centre for Environment and Sustainability, University of Surrey, Guildford GU2 7XH, UK)

  • Stephen Morse

    (Centre for Environment and Sustainability, University of Surrey, Guildford GU2 7XH, UK)

  • Richard J. Murphy

    (Centre for Environment and Sustainability, University of Surrey, Guildford GU2 7XH, UK)

Abstract

Waste management and electricity supply have always been among the main challenges faced by developing countries. So far, the use of waste to energy (WtE) is one strategy that could simultaneously address these two challenges. However, the use of such technologies requires detailed studies to ensure their sustainability. In this paper, the potential of WtE in two cities in Nigeria (Abuja and Lagos) using anaerobic digestion (AD), incineration, gasification and landfill gas to energy (LFGTE), is presented with the aim of evaluating their economic viability using life cycle costing (LCC) as an analytical tool. This economic feasibility analysis includes LCC, levelised cost of electricity (LCOE), net present value (NPV), internal rate of return (IRR) and payback period. A sensitivity analysis was conducted to investigate the influence of several parameters on the economic viability of the selected technologies for the two cities. The economic assessment revealed that all the WtE systems were feasible and viable in both cities except for LFGTE in Abuja where the NPV was negative (−USD 105.42/t), and the IRR was 4.17%. Overall, incineration for both cities proved to be the most favourable economic option based on its positive LCC (Lagos USD 214.1/t Abuja USD 232.76/t), lowest LCOE (Lagos USD 0.046/t Abuja USD 0.062/t), lowest payback period (Lagos 1.6 years Abuja 2.2 years) and the highest IRR (Lagos 62.8% Abuja 45.3%). The results of the sensitivity analysis also indicated that variation in parameters such as the capital cost and discount rate have significant effects on the LCC. This paper provides information for potential investors and policy makers to enhance optimal investment in WtE technologies in Nigeria.

Suggested Citation

  • Oluwaseun Nubi & Stephen Morse & Richard J. Murphy, 2022. "Prospective Life Cycle Costing of Electricity Generation from Municipal Solid Waste in Nigeria," Sustainability, MDPI, vol. 14(20), pages 1-24, October.
  • Handle: RePEc:gam:jsusta:v:14:y:2022:i:20:p:13293-:d:943737
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    References listed on IDEAS

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    1. Oluwaseun Nubi & Stephen Morse & Richard J. Murphy, 2022. "Electricity Generation from Municipal Solid Waste in Nigeria: A Prospective LCA Study," Sustainability, MDPI, vol. 14(15), pages 1-25, July.
    2. Ismaila Rimi Abubakar, 2017. "Access to Sanitation Facilities among Nigerian Households: Determinants and Sustainability Implications," Sustainability, MDPI, vol. 9(4), pages 1-17, April.
    3. Oluwaseun Nubi & Stephen Morse & Richard J. Murphy, 2021. "A Prospective Social Life Cycle Assessment (sLCA) of Electricity Generation from Municipal Solid Waste in Nigeria," Sustainability, MDPI, vol. 13(18), pages 1-24, September.
    4. Santiago Alzate-Arias & Álvaro Jaramillo-Duque & Fernando Villada & Bonie Restrepo-Cuestas, 2018. "Assessment of Government Incentives for Energy from Waste in Colombia," Sustainability, MDPI, vol. 10(4), pages 1-16, April.
    5. Ayodele, T.R. & Ogunjuyigbe, A.S.O. & Alao, M.A., 2017. "Life cycle assessment of waste-to-energy (WtE) technologies for electricity generation using municipal solid waste in Nigeria," Applied Energy, Elsevier, vol. 201(C), pages 200-218.
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    Cited by:

    1. Zakariya Kaneesamkandi & Abdul Sayeed, 2023. "Evaluation of Multi-Utility Models with Municipal Solid Waste Combustion as the Primary Source under Specific Geographical and Operating Conditions," Energies, MDPI, vol. 16(15), pages 1-17, July.
    2. Oluwaseun Nubi & Stephen Morse & Richard J. Murphy, 2022. "Life Cycle Sustainability Assessment of Electricity Generation from Municipal Solid Waste in Nigeria: A Prospective Study," Energies, MDPI, vol. 15(23), pages 1-16, December.

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