Cost Of Different Sources Of Electricity In Nigeria - Science/Technology - Nairaland
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| Cost Of Different Sources Of Electricity In Nigeria by Barcholder: 2:32am On Apr 08, 2013 |
Hi All I'd like to start a discussion about the cost of Electricity in Nigeria today. The numbers make for interesting reading. And as they say, numbers don't lie. Diesel Generator 71.7 Naira per kWh Petrol Generator 69.5 Naira per kWh PHCN Grid Electricity 23 Naira per kWh Solar Power 15.5 Naira per kWh Why on earth do Nigerians still persist on using generators? Discuss 3 Likes |
| Re: Cost Of Different Sources Of Electricity In Nigeria by Genius100: 2:56am On Apr 08, 2013 |
Barcholder: Hi All You forgot to include the start up cost of solar power. Second, what if the solar apparatus breaks down? I'm not sure Nigeria currently has enough experts to make a hitch-free solar power experience a reality.. 4 Likes |
| Re: Cost Of Different Sources Of Electricity In Nigeria by Barcholder: 3:00am On Apr 08, 2013 |
Genius100: That IS the start up cost of Solar Power. There is only one cost of solar, and that is the start up cost. Once purchased, there are no additional running costs and they last for at least 25 years. They CANNOT break down, as there are no moving parts (the ONLY reason it will cease to work is because the people who installed it were morons). There is nothing to break down. Once installed, they continue to convert sunlight into electricity. It's actually a very simple technology, and is used extensively around the world. 6 Likes |
| Re: Cost Of Different Sources Of Electricity In Nigeria by Pukkah: 8:09am On Apr 08, 2013 |
Barcholder: Hi All I think you should include the source or how the numbers were arrived at. You may also indicate the start-up cost for each one under different scenarios. Eg, the start-up cost for PHCN is the metre. What's the start-up cost for solar and comparable diesel generators? Petrol/diesel generators come in different capacities. Does this change the cost per kWH? Can Solar power support the appliances that PHCN or diesel generators easily support, eg ACs, fridges, electric irons, etc? 5 Likes |
| Re: Cost Of Different Sources Of Electricity In Nigeria by ayox2003: 9:23am On Apr 08, 2013 |
Barcholder: Hi All First off, a segmented class exist in Nigeria: the poor (more than 50%), the middle class, and the rich (less than 10%). Nigerians need 60,000MW yet we generate 4,500Mw. People need electricity and they would go to any length to get it at the cheapest price. For the poor, they would rather buy a small, less than $100 = N16,000 generator that they'd be able to fuel with $2 = N320 and would meet their energy needs because they stay small rooms. The middle class could buy a $600 = N95,000 generator that he would fuel with $40 = N6,500 per week. The rich spend much more. Cheap is the nigerian slogan. Chinese products thrive in Nigeria because they are cheap. The one-off payment that might last longer and save more doesn't really matter to nigerians. Once they can afford a product at any time, even if it would later cost them more than buying an expensive product that would last longer and perform better, they don't mind buying it over and over again. Solar pays on the long run but the one-time payment for installation is not cheap for the poor and some middle class. Hence, generators are preferred. Frawzey 15 Likes |
| Re: Cost Of Different Sources Of Electricity In Nigeria by Barcholder: 9:40am On Apr 08, 2013 |
ayox2003: You are exactly right - i'm very impressed with your knowledge of the sector. This problem has been solved by the provision of financing to purchase the products, with a 20% deposit. So people are now able to buy solar and pay off over 24 months. The unlocking of the credit markets is the key to mass adoption of solar power in Nigeria, and there's a product that now does that. 2 Likes |
| Re: Cost Of Different Sources Of Electricity In Nigeria by Barcholder: 11:25am On Apr 08, 2013 |
Pukkah: The source for my numbers are as follows: 1. Average petrol and diesel consumption rates at the current official fuel prices are readily available via any google search. A recent report at the start of 2012 done PRIOR to the partial subsidy removal had the figures of 46.3 per kWh and 47.78 kWh for petrol and diesel generators respectively. This has subsequently risen by 50% as you will be well aware. 2. PHCN costs per kWh figures, again, are widely available through any google search. 3. Solynta Energy, a UK based company about to launch into the Nigerian domestic and commercial markets, are providing complete solar solutions at a comparable price of 15.5 naira per kWh. Here is how that number is calculated. A 1kW PV solar power system (including installation) sells for N800,000, and produces 57,000 kWh of electricity over 25 years. The total cost of that system, including replacement costs of Inverters every 10 years, and batteries every 5 years, is N883,776. So, simply divide the cost by the number of kWh produced, and you get a cost per kWh of 15.5. This is irrefutable fact. Please note that these numbers assume ZERO start up cost for both generators and PHCN. Including those costs will increase the cost per kWh as you can appreciate. Solar on the other hand, is totally an upfront cost. Once incurred, there are practically zero maintenance and replacement costs over at least 25 years. The average generator costs per kWh are generally higher the smaller the generator is. The numbers used are an average number based on generators between 1 kva and 100 kva. So, the average for household generators is likely to be about 10-15% higher than quoted. Solar Power can support anything from a single room, right up to the largest factory installation. There is no limit to the amount of Energy Solar panels can produce, because there is no limit to the amount of energy the sun can produce (its the most powerful energy source on earth by some order of magnitude). The only constraint is the amount of roof space your house has to lay the panels on. The average home has sufficient roof space to generate 4 times the amount of energy it requires. It seems Nigeria is in the wilderness in terms of Solar knowledge, whilst the rest of the world takes it up with massive gusto. We are very backwards it seems. http://www.solarcity.com/ http://www.smh.com.au/environment/energy-smart/australians-lead-in-fitting-solar-panels-on-homes-20120817-24dxd.html Just a little snippet of information for you. Nigerians please wake up. 3 Likes |
| Re: Cost Of Different Sources Of Electricity In Nigeria by Tolexander: 11:50am On Apr 08, 2013 |
Don't worry. Until they drove you to the point where the cost of powering a generator will be cost justifying to using a PHCN light. |
| Re: Cost Of Different Sources Of Electricity In Nigeria by Barcholder: 11:57am On Apr 08, 2013 |
Tolexander: Don't worry. Until they drove you to the point where the cost of powering a generator will be cost justifying to using a PHCN light. Absolutely right. Make no mistake, that day is coming very soon. As a UK based Nigerian, I can attest to the effect of privatisation of the national grid. Get ready for the doubling of grid electricity prices every 5 to 7 years. It won't be too long before PHCN is charging you 70 naira per kWh, now that Jonathan has given the green light for privatisation. Solar energy prices are fixed. Let me assure you, if this situation was the same in the UK, EVERY SINGLE household would have gone solar by now. I'm frequently left utterly perplexed by the workings of the typical Nigerian mind. 4 Likes |
| Re: Cost Of Different Sources Of Electricity In Nigeria by emiye(m): 12:11pm On Apr 08, 2013 |
Barcholder: What are the limitations of using solar powered technology? |
| Re: Cost Of Different Sources Of Electricity In Nigeria by manny4life(m): 12:11pm On Apr 08, 2013 |
Barcholder: Hi All Like someone rightly pointed out, SOLAR isn't cheap @ the moment though the calculation may indeed reflect it being cheap over the lifespan of the panels but it isn't. If panels become cheaper to produce and install, Nigeria's rising middle class will for sure embrace it. |
| Re: Cost Of Different Sources Of Electricity In Nigeria by zolajpower: 12:11pm On Apr 08, 2013 |
GEJ ,HAS A LOT OF JOB ON HIS HANDS,FOR GRANTING AMENSTY TO BH. THOSE INVOLV IN THE DOUBLE BOMB BLAST WHCH KILLD A LOT OF IGBOS. LETS HOPE IS GOVT CE D LITE OF 2014. COS THIS MAY B A WAKE UP CALL MASSOB 2 ALSO CARRY ARMS. |
| Re: Cost Of Different Sources Of Electricity In Nigeria by RedLight1: 12:14pm On Apr 08, 2013 |
op you sound like solar power's advocate.. Please i really wana know more about it. Btw are you into it? |
| Re: Cost Of Different Sources Of Electricity In Nigeria by cheddarking(m): 12:14pm On Apr 08, 2013 |
A house has 7 bedrooms and 2 living rooms....as well as a BQ comprising 1room/livingroom/toilet The main house has 2 Large Fridges and 2 Deep Freezers. Each bedroom has a Wall mounted 1hp AC...while the 2 living rooms have a 3HP split standing unit each. There are 9 Flatscreen LEDs in this house, usually on at the same time. There is also a pumping machine in the yard for water. Can you use Solar Energy to Power this house? And how big is the Array gonna be? 4 Likes |
| Re: Cost Of Different Sources Of Electricity In Nigeria by newpaparazzi(m): 12:14pm On Apr 08, 2013 |
ayox2003: Good response. You sounded informed. Nigerians don't know that the initial cost of solar power is far from the reach of the majority. While the running cost is very low, the start up is very exorbitant. but if you are very rich,your house and business should not suffer from power failure. |
| Re: Cost Of Different Sources Of Electricity In Nigeria by AjanleKoko: 12:15pm On Apr 08, 2013 |
@OP, There are startup and R&D costs associated with providing effective solar solutions that would scale across power requirements in Nigeria. Obviously nobody is interested in incurring those costs, and they obviously can't be passed on to the customer. That's the reason for the low adoption here. If not, even the PHCN would have invested in solar farms, and would not be relying solely on NNPC's gas for generation. |
| Re: Cost Of Different Sources Of Electricity In Nigeria by qlp007(m): 12:16pm On Apr 08, 2013 |
The start up cost of solar-power is relatively astronomical compared to engaging the use of generators and government's power supply hitherto has been epileptic. It then becomes choosing between high maintenance charges on the fuel powered generation or high installation cost of the solar-powered systems. Another problem I see with the solar powered system is the availability of expertise in maintenance and repairs as every machine is bound to break down at one point or the other. |
| Re: Cost Of Different Sources Of Electricity In Nigeria by Nobody: 12:16pm On Apr 08, 2013 |
this is eye opening. |
| Re: Cost Of Different Sources Of Electricity In Nigeria by babaowo: 12:17pm On Apr 08, 2013 |
The company need to come to Nigeria because our weather is entirely different. |
| Re: Cost Of Different Sources Of Electricity In Nigeria by sweetgala(m): 12:20pm On Apr 08, 2013 |
To start with two of the above options are best generated privately, Still Nigeria is an oil producing company therefore we have excess amounts of oil, gas, and diesel to use to produce energy, thereby negating high procurement and transportation cost. Hydro-electric power generation is a great idea the water is free you just have to construct the dam and relevant facilities and high maintenance culture is required. Solar panel technology is still relatively young, and new forms of photovoltaic cells are being developed everyday. One of the main issues with solar panels is the heat generated as a by result of the energy conversion process, this could be useful in an industry/home where heat is used(domestic rooftop solar panels has cool water running over the surface of the panels providing hot water for the home)otherwise an industrial size solar field would require an elaborate cooling system and that could be expensive and cumbersome for a country like Nigeria with our poor maintenance culture to operate. |
| Re: Cost Of Different Sources Of Electricity In Nigeria by tbaba1234: 12:21pm On Apr 08, 2013 |
Barcholder: Hi All Is this the levelised cost of energy?? what were the assumptions made in reaching this conclusion?? How come solar power is cheaper than the PHCN grid power?? Renewable energy is usually not economically dispatchable so i find that to be very odd. Please state how you came about this conclusion... |
| Re: Cost Of Different Sources Of Electricity In Nigeria by Barcholder: 12:24pm On Apr 08, 2013 |
AjanleKoko: @OP, No there isn't. You are totally misinformed. The cost for a typical family to instantly become completely energy independent is N1.4m. That's it. No Research and Development is necessary. This is basic technology that is extensively used across the world. Why on earth do Nigerians think they are somehow unique? Every Western country is pushing Solar adoption as the answer to the energy crises being experienced, and these are countries that receive less than half the solar radiation Nigeria gets. Put another way, its more than twice as expensive in these countries to go solar. And yet, Nigerians still come out with these factually incorrect statements. We are obviously waiting for the white man to go over and teach us about it, then we'll all say, Oh yes, you are right. Here are some facts for you - please feel free to research them: 1. Over 10% of all Australian households (850,000) now use solar to power their homes 2. Germany (a country with hardly any sunshine) now produces 22GW (or 22,000MW) of energy through solar. To give that some perspective, the entire Nigerian national grid produces 5GW (or 5,000MW). Please reappraise your facts. 4 Likes |
| Re: Cost Of Different Sources Of Electricity In Nigeria by Biggyd2: 12:26pm On Apr 08, 2013 |
@OP I'm frequently left utterly perplexed by the workings of the typical Nigerian mind. I am not sure I understand the meaning of the quoted. However, people have already contributed on why the solar option cannot be readily embraced. Nigerians are not dumb. Who no like better thing? They will do anything in their power to get electricity if possible. You seem to be based abroad. If you have ideas that will better our lot, why don't you bring it home. Even though our leaders want to ruin this country, majority of its citizens want things to be better. Nice thread though. 1 Like |
| Re: Cost Of Different Sources Of Electricity In Nigeria by sweetgala(m): 12:28pm On Apr 08, 2013 |
cheddarking: A house has 7 bedrooms and 2 living rooms....as well as a BQ comprising 1room/livingroom/toilet Last I checked you'd need about 60,000-150,000 euro for something from one of these eco start-up companies. There are a lot of them out there these days coming up with great domestic and industrial solar solutions and wind turbines. For an adequate solar field you need some space + 30% of your roof-top. Be ready to have scolding hot water  |
| Re: Cost Of Different Sources Of Electricity In Nigeria by Beaf1: 12:28pm On Apr 08, 2013 |
@poster I have a 5KVA inverter with 200x4AH deep-circle batteries, six solar charging panels. I enjoy lights, TVs, fans etc for as long as possible. But I wouldnt dare connect my ACs, Refrigerators, Electric kettles, irons etc. I cant afford to install a higher capacity inverter. Tell me, how can I write off PHCN? 1 Like |
| Re: Cost Of Different Sources Of Electricity In Nigeria by iRichards: 12:29pm On Apr 08, 2013 |
Hi Barcholder, What is the typical cost of setting up a 5KVA Solar Power System in Nigeria? Cheers. MODIFIED Hi Beaf...saw your post after posting. How much did your system cost? Thanks |
| Re: Cost Of Different Sources Of Electricity In Nigeria by tbaba1234: 12:29pm On Apr 08, 2013 |
Solar energy requires government incentives such as tax rebates to be attractive.. There is no one who would invest in a solar plant without incentives... It does not make any sense. In the US, they have renewable portfolio standards which is set up to essentially compel utilities to invest in renewable sources of energy such as wind and solar. For most of these standards, solar energy is separated from the rest because it is not attractive enough. Most utilities would rather invest in wind because if you can get a good quality wind site. It could be competitive. |
| Re: Cost Of Different Sources Of Electricity In Nigeria by Barcholder: 12:33pm On Apr 08, 2013 |
Biggyd2: My friend, please be assured that this is EXACTLY what I'm doing. We will shortly be launching a Solar Installation Company in Nigeria, and our stated aim is to finally eliminate the power problems we have suffered for years. As a diasporan, I see it as my duty to add my quota to the mother land. I have secured enormous financial backing from both Nigerian and UK banks, and will certainly make a huge difference to the country. Nigeria is probably the country most suited to Solar adoption in the world, and my company is determined to make widespread adoption a reality for all NIgerians. I cannot post direct links to our company on here, or else I'll be banned. However, I do have a massive thread going somewhere else on these boards which i can link you to. Please feel free to read and contribute. Help us to free Nigeria from Energy bondage. Its the only way the country will reach its full potential. https://www.nairaland.com/1234695/easiest-way-get-rich/3 1 Like |
| Re: Cost Of Different Sources Of Electricity In Nigeria by djsmoothy: 12:33pm On Apr 08, 2013 |
cheddarking: A house has 7 bedrooms and 2 living rooms....as well as a BQ comprising 1room/livingroom/toilet@OP, This man has given us the down-side of solar panel i was about to buy it for my house in uk 4.0kw will cost me 8k pounds that's 16 panels on my roof this will only generate 3500kw in a yr for my 2 bedroom house, last yr with British gas i used over 6000kw that means solar will not be a good idea for my house apart from the feed-in tariff and also if you read the small print it tells you they can't guarantee it will generate the full power. So solar panel will not power the above and if it will then you will spend over N5m to build it crazy |
| Re: Cost Of Different Sources Of Electricity In Nigeria by cheddarking(m): 12:34pm On Apr 08, 2013 |
sweet_gala: Thanks! That is exactly the point I was driving at! There a lot of similarly setup houses in Nigeria today, but who will pay THAT kind of money for it? |
| Re: Cost Of Different Sources Of Electricity In Nigeria by Guk: 12:34pm On Apr 08, 2013 |
Barcholder: Am perplexed as to why you complain about high energy bills in UK but you have not changed over to solar? |
| Re: Cost Of Different Sources Of Electricity In Nigeria by Biggyd2: 12:37pm On Apr 08, 2013 |
Barcholder: Respect Sir! That's all I wanted to hear. Not those pointing accusing fingers from the diaspora. You can be rest assured, that if this is affordable, many Nigerians will turn to this form of alternative power supply and they will encourage you. |
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