IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v132y2019icp196-207.html
   My bibliography  Save this article

Solar PV-diesel hybrid systems for the Nigerian private sector: An impact assessment

Author

Listed:
  • Adesanya, Adewale Aremu
  • Schelly, Chelsea

Abstract

This research examines the impact of Nigerian private sector investment in captive power generation from solar photovoltaic (PV) and diesel generator (DG) hybrid energy systems. The study assesses the economic viability of solar PV-DG hybrid systems among Nigerian private companies using levelized cost of energy (LCOE) and analyzes policies that can facilitate solar PV investment as a bottom-up approach to Nigeria's energy development. Forty (40) private companies across Nigeria were surveyed to examine potential the fuel savings that hybrid of PV and DG can achieve. Out of the surveyed companies, three cases representing different load factors were selected and modelled in HOMER Pro to obtain LCOE for each case study. The research findings indicate that electricity generation deficiencies for Nigerian business consumers can be addressed with available renewable energy solar resources. A savings between € 0.002 and 0.009/kWh was achieved from the three-case study. Adequate policy to support investment is both necessary and possible for achieving increased solar PV adoption for highly willing Nigerian private sector.

Suggested Citation

  • Adesanya, Adewale Aremu & Schelly, Chelsea, 2019. "Solar PV-diesel hybrid systems for the Nigerian private sector: An impact assessment," Energy Policy, Elsevier, vol. 132(C), pages 196-207.
    • Handle: RePEc:eee:enepol:v:132:y:2019:i:c:p:196-207
    DOI: 10.1016/j.enpol.2019.05.038
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421519303428
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2019.05.038?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Emodi, Nnaemeka Vincent & Boo, Kyung-Jin, 2015. "Sustainable energy development in Nigeria: Current status and policy options," Renewable and Sustainable Energy Reviews, Elsevier, vol. 51(C), pages 356-381.
    2. Mo, Jian-Lei & Agnolucci, Paolo & Jiang, Mao-Rong & Fan, Ying, 2016. "The impact of Chinese carbon emission trading scheme (ETS) on low carbon energy (LCE) investment," Energy Policy, Elsevier, vol. 89(C), pages 271-283.
    3. Reuter, Wolf Heinrich & Szolgayová, Jana & Fuss, Sabine & Obersteiner, Michael, 2012. "Renewable energy investment: Policy and market impacts," Applied Energy, Elsevier, vol. 97(C), pages 249-254.
    4. Olatomiwa, Lanre & Mekhilef, Saad & Huda, A.S.N. & Ohunakin, Olayinka S., 2015. "Economic evaluation of hybrid energy systems for rural electrification in six geo-political zones of Nigeria," Renewable Energy, Elsevier, vol. 83(C), pages 435-446.
    5. Djiby Thiam, 2011. "An energy pricing scheme for the diffusion of decentralized renewable technology investment in developing countries," Post-Print hal-01135616, HAL.
    6. Ikeme, J. & Ebohon, Obas John, 2005. "Nigeria's electric power sector reform: what should form the key objectives?," Energy Policy, Elsevier, vol. 33(9), pages 1213-1221, June.
    7. Thiam, Djiby Racine, 2011. "An energy pricing scheme for the diffusion of decentralized renewable technology investment in developing countries," Energy Policy, Elsevier, vol. 39(7), pages 4284-4297, July.
    8. Ajayi, Oluseyi O. & Ajayi, Oluwatoyin O., 2013. "Nigeria's energy policy: Inferences, analysis and legal ethics toward RE development," Energy Policy, Elsevier, vol. 60(C), pages 61-67.
    9. Aliyu, Abubakar Sadiq & Ramli, Ahmad Termizi & Saleh, Muneer Aziz, 2013. "Nigeria electricity crisis: Power generation capacity expansion and environmental ramifications," Energy, Elsevier, vol. 61(C), pages 354-367.
    10. 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.
    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. Abisoye Babajide & Miguel Centeno Brito, 2020. "Powering the Commercial Sector in Nigeria Using Urban Swarm Solar Electrification," Sustainability, MDPI, vol. 12(10), pages 1-19, May.
    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. Chelsea Schelly & Don Lee & Elise Matz & Joshua M. Pearce, 2021. "Applying a Relationally and Socially Embedded Decision Framework to Solar Photovoltaic Adoption: A Conceptual Exploration," Sustainability, MDPI, vol. 13(2), pages 1-18, January.
    4. Wasiu Olalekan Idris & Mohd Zamri Ibrahim & Aliashim Alibani, 2024. "Prospects of Solar Energy Exploration in Nigeria: Assessments, Economic Viability and Hybrid System," International Journal of Energy Economics and Policy, Econjournals, vol. 14(2), pages 676-686, March.
    5. Maria Unuigbe & Sambo Lyson Zulu & David Johnston, 2022. "Exploring Factors Influencing Renewable Energy Diffusion in Commercial Buildings in Nigeria: A Grounded Theory Approach," Sustainability, MDPI, vol. 14(15), pages 1-32, August.
    6. Wang, Gang & Zhang, Zhen & Lin, Jianqing, 2024. "Multi-energy complementary power systems based on solar energy: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 199(C).
    7. Blessing Ugwoke & Adedoyin Adeleke & Stefano P. Corgnati & Joshua M. Pearce & Pierluigi Leone, 2020. "Decentralized Renewable Hybrid Mini-Grids for Rural Communities: Culmination of the IREP Framework and Scale up to Urban Communities," Sustainability, MDPI, vol. 12(18), pages 1-26, September.

    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. 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).
    2. 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.
    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. 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.
    5. Salmon, Claire & Tanguy, Jeremy, 2016. "Rural Electrification and Household Labor Supply: Evidence from Nigeria," World Development, Elsevier, vol. 82(C), pages 48-68.
    6. Tu, Qiang & Betz, Regina & Mo, Jianlei & Fan, Ying, 2019. "The profitability of onshore wind and solar PV power projects in China - A comparative study," Energy Policy, Elsevier, vol. 132(C), pages 404-417.
    7. 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.
    8. Taitiya Kenneth Yuguda & Sunday Adiyoh Imanche & Tian Ze & Tosin Yinka Akintunde & Bobby Shekarau Luka, 2023. "Hydropower development, policy and partnership in the 21st century: A China-Nigeria outlook," Energy & Environment, , vol. 34(4), pages 1170-1204, June.
    9. Juaidi, Adel & Montoya, Francisco G. & Ibrik, Imad H. & Manzano-Agugliaro, Francisco, 2016. "An overview of renewable energy potential in Palestine," Renewable and Sustainable Energy Reviews, Elsevier, vol. 65(C), pages 943-960.
    10. Michael O. Ukoba & Ogheneruona E. Diemuodeke & Mohammed Alghassab & Henry I. Njoku & Muhammad Imran & Zafar A. Khan, 2020. "Composite Multi-Criteria Decision Analysis for Optimization of Hybrid Renewable Energy Systems for Geopolitical Zones in Nigeria," Sustainability, MDPI, vol. 12(14), pages 1-27, July.
    11. Suberu, Mohammed Yekini & Mustafa, Mohd Wazir & Bashir, Nouruddeen & Muhamad, Nor Asiah & Mokhtar, Ahmad Safawi, 2013. "Power sector renewable energy integration for expanding access to electricity in sub-Saharan Africa," Renewable and Sustainable Energy Reviews, Elsevier, vol. 25(C), pages 630-642.
    12. Mukisa, Nicholas & Zamora, Ramon & Lie, Tek Tjing, 2021. "Store-on grid scheme model for grid-tied solar photovoltaic systems for industrial sector application: Benefits analysis," Renewable Energy, Elsevier, vol. 171(C), pages 1257-1275.
    13. Ogunmodimu, Olumide & Okoroigwe, Edmund C., 2019. "Solar thermal electricity in Nigeria: Prospects and challenges," Energy Policy, Elsevier, vol. 128(C), pages 440-448.
    14. 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.
    15. 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.
    16. Monica Castaneda & Sebastian Zapata & Andres Aristizabal, 2018. "Assessing the Effect of Incentive Policies on Residential PV Investments in Colombia," Energies, MDPI, vol. 11(10), pages 1-17, October.
    17. Nduka, Eleanya, 2021. "How to get rural households out of energy poverty in Nigeria: A contingent valuation," Energy Policy, Elsevier, vol. 149(C).
    18. 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.
    19. Umoh, Edwin A. & Lugga, Ahmad A., 2019. "Contextualizing hazard mitigation policy for electricity grids in the Sudan Sahel Region of Nigeria," Energy Policy, Elsevier, vol. 124(C), pages 135-143.
    20. El-Karmi, Fawwaz Z. & Abu-Shikhah, Nazih M., 2013. "The role of financial incentives in promoting renewable energy in Jordan," Renewable Energy, Elsevier, vol. 57(C), pages 620-625.

    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:eee:enepol:v:132:y:2019:i:c:p:196-207. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    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.