Techno-Economic Simulation and Analysis of Mini-grid for Underserved Urban Location in Nigeria

Abstract

About 40% of Nigerians lack access to electricity, mostly in the rural areas. On the other hand, reliability of supply in the urban centers connected to the national grid is also problem. This paper examines the technical and economic feasibility of mini grids in urban locations in Nigeria. Issues impeding investment in mini-grids were highlighted and necessary policies and regulatory framework for mini-grid to thrive were proffered. The renewable energy (RE) penetration potential for mini grids were highlighted in addition to the critical economic parameters, which are of interest to investors: Return on Investment (ROI), Payback and Internal Rate of Return (IRR), etc. The result of the research showed that about 30% of renewable energy penetration is achievable with mini grid adoption in addition to potential it must bridge the energy supply gap in Nigeria. The result of the study also showed that Solar PV with Battery storage were the only means of renewable energy utilization for the mini grid configuration because the wind speed for the study area was found to be too low to support utility scale electricity generation and the areas does not have mini hydro potential. Mini grid from the study also showed good potential for reduction of harmful emissions like the like CO, CO₂, SO₂, NO_x, particulate matter and unburnt hydrocarbons.