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Economic Analysis and Potential Feed‐in Tariff of Grid‐Connected PV Systems in Nigeria
Author(s) -
Adaramola Muyiwa S.,
Paul Samuel S.
Publication year - 2017
Publication title -
environmental progress and sustainable energy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.495
H-Index - 66
eISSN - 1944-7450
pISSN - 1944-7442
DOI - 10.1002/ep.12502
Subject(s) - tariff , cost of electricity by source , photovoltaic system , feed in tariff , environmental science , investment (military) , electricity , net present value , port harcourt , port (circuit theory) , incentive , solar energy , environmental engineering , environmental economics , engineering , economics , renewable energy , electrical engineering , electricity generation , energy policy , production (economics) , physics , microeconomics , international economics , power (physics) , quantum mechanics , socioeconomics , politics , political science , law
This study presents a feasibility study of grid‐tied PV system in selected locations across the country with focus on cost of energy produced and incentives such as feed‐in tariff and investment support. Based on the study locations and assumptions used in this study, it was estimated that the annual energy generated by the PV system varies between 2885 kWh in Port‐Harcourt in southern region and 4391 kWh in Isa in northern region. The optimal simulation results reveal that the levelized cost of energy varies from one location to another: highest in very low‐energy site (Port‐Harcourt) and lowest in the very high‐energy (Isa). In addition, it is estimated that the feed‐in tariff varies between N76.54/kWh (or US$0.4556/kWh) in Port‐Harcourt and N50.25/kWh (or US$0.2991/kWh) in Isa. It was further observed that the ratio of levelized cost of energy to current electricity tariff is least at Bauchi with a value of 1.22 and highest in Ikeja with a value of 2.95. Consequently, it would easier to sell solar PV idea to individual in Bauchi than those in Ikeja to invest in solar PV. Some of the benefits and potential challenges of implementing feed‐in tariff in Nigeria were also presented. © 2016 American Institute of Chemical Engineers Environ Prog, 36: 305–314, 2017