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Electricity Access in Nigeria: Viability of Off-Grid Photovoltaic System

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Electricity Access in Nigeria: Viability of Off-Grid Photovoltaic System SPIDER ELECTRICITY ACCESS IN NIGERIA: VIABILITY OF SOLUTIONS OFF-GRID PHOTOVOLTAIC SYSTEM NIGERIA To be presented at the Institute of Electrical and Electronics Engineers (IEEE) African Conference, Sept., 2013, Mauritius © 2013 IEEE. Personal use of this material is permitted. Permission from IEEE must be obtained for all other uses, in any current or future media, including reprinting/republishing this material for advertising or promotional purposes, creating new collective works, for resale or redistribution to servers or lists, or reuse of any copyrighted component of this work in other works [June, 2013] Electricity Access in Nigeria: Viability of Off-Grid Photovoltaic System Uduak S. Akpan, Salisu R. Isihak Ye-Obong N. Udoakah Sustainability, Policy, and Innovative Development Department of Electrical Engineering, University of Uyo, Research (SPIDER) Solutions Nigeria Uyo, Nigeria Uyo, Nigeria [email protected] Abstract— This study examines the viability of providing maternal health, health facilities need refrigerators to preserve electricity to an un-electrified village in North-Eastern Nigeria drugs and vaccines, and need electricity for proper lighting for using a mini-grid based off-grid solar photovoltaic system. The effective service delivery. Studies have shown that there is a study employs the life-cycle cost to estimate a 25-year life-time high correlation between annual per capita electricity cost of an off-grid electrification project using solar photovoltaic consumption and human development index in low income panels and compares with the cost of paying for grid-electricity countries [2]. within the same period. Comparing the cost of off-grid electrification with grid-extension is more appropriate; however, data on the cost of grid extension in Northern Nigeria are scarce. The electricity access situation in Nigeria is not Thus, electricity tariff is used as a proxy since the Nigerian different from that of other developing countries. In 2009, electricity market has been deregulated and the electricity tariff about 50.6% of Nigerians lacked access to electricity [1]. is expected to be market-reflective. The result shows that such However, due to the coverage of the existing grid (see fig 1), project will not be economically viable at the prevailing the electricity access situation at the different geopolitical commercial lending rate as it yields a negative net present value. zones is different as shown in Table 1. From Fig 1 and Table However, the project becomes viable with adequate government 1, we observe that the lack of electricity access is more severe support through the reduction in commercial lending rate for in the northern parts of Nigeria with the North-East such projects and provision of start-up grants (as production subsidy). Such subsidy will not result in economic waste since the geopolitical zone having 71.6%. Co-incidentally, the North- target is clearly defined. Apart from government financial East geopolitical zone lags behind other zones in other socio- incentives, creating necessary support mechanism in terms of economic indices like literacy level, access to health care, legal and regulatory frameworks to encourage private maternal mortality, access to clean water etc [3]. investment will be necessary. In addition, engaging the community in the construction and maintenance of the project will ensure sustainability. Keywords: Electricity access, Off-grid electrification, Solar Photovoltaic System, Viability, Nigeria. 1.0 INTRODUCTION One of the major energy challenges in the world today is ensuring access to clean and sustainable energy in developing countries. The International Energy Agency (IEA) [1] estimated that in 2009 about 1.3 billion people in the world lacked access to electricity1 of which 585 million were in Sub- Saharan Africa (SSA). Most of these people live in rural areas. The lack of access to electricity poses a significant barrier to achieving the Millennium Development Goals (MDGs). For example, to achieve universal primary education, educational facilities need electricity for teaching aids and good lighting for reading in homes; to reduce child mortality and improve Fig 1: Coverage of electricity grid in Nigeria (in 2010) 1 Access to electricity in this paper is defined as “Access to adequate, Source: Global Energy Network Institute (GENI) accessible, and affordable electricity to promote socio-economic development” Table 1: Distribution of households without electricity access in the different lighting, and cooking which provide the necessities of life to geo-political zones of Nigeria (in Percentage) these rural dwellers. Different technical options can be North- North- North-East South- South-East South-South considered in implementing off-grid models e.g. Biomass, West Central West Wind, Hydro, Solar Power, or the combination of two Jigawa Benue Adamawa Ekiti Abia (33.3) Akwa Ibom technologies [8], [9]. The use of each technology depends on (56.5) (72.0) (71.4) (15.2) (38.3) Kaduna Kogi (48.1) Bauchi Lagos Anambra Bayelsa the domestic resources available. Communities close to a river (42.4) (58.5) (0.3) (38.3) (36.9) will likely use mini hydroelectric projects, and communities Kano Kwara Borno (77.3) Ogun Ebonyi Cross River with high solar irradiation will likely use solar energy. (56.2) (38.5) (20.4) (68.1) (46.3) Katsina Nassarawa Gombe Ondo Enugu Delta (46.3) Data for some towns in the North-East geopolitical (59.7) (70.6) (55.4) (41.9) (48.5) zone of Nigeria which records the lowest electricity access Kebbi Niger Taraba Osun Imo (12.6) Edo (15.2) level show a relatively high solar irradiation level as shown in (54.4) (56.6) (88.8) (33.9) table 2. This indicates a potential for off-grid electrification Sokoto Plataeu Yobe (78.0) Oyo Rivers (21.7) using solar photovoltaic system in rural communities in this (69.5) (71.3) (38.8) geopolitical zone. Thus, this research intends to consider the Zamfara viability of using solar energy for off-grid electrification in (77.1) rural communities in the North-East geopolitical zone of Average Average Average Average Average Average Nigeria. Given the intermittency of solar energy, some studies (59.4) (59.5) (71.6) (25.1) (40.2) (34.1) consider the viability of off-grid electrification using solar PV Source: National Bureau of Statistics, Nigeria [4] system in a hybrid mix, usually with a backup diesel engine Given the importance of electricity access to the [10], [11], [12]. However, the downstream petroleum market socio-economic development of a country at micro and macro for diesel in Nigeria is deregulated which makes the cost of 3 levels, in August 2010, the Nigerian government set the target diesel to be between N120 and N160 ($0.80 and $1.07) per of 80% electricity coverage by 2015 in the Roadmap to Power litre. 2 Sector Reforms [5]. This implies providing electricity to the Thus, the study will not consider the hybrid solar hundreds of small communities presently without electricity – PV/diesel option since the low income in rural areas will make including those far from the existing grid. As electricity utility it ineffective in guaranteeing electricity access due to the high has been privatized, providing electricity for these rural recurrent cost of diesel. In particular, this research answers the dwellers implies constructing transmission and distribution question, “Is off-grid electrification using solar photovoltaic (T&D) lines to reach the communities. However, constructing system a viable option for achieving the target of 80% T&D lines is capital intensive. Moreover, most rural electrification by 2015 in Nigeria?” communities have dispersed settlement pattern and rural dwellers are low income earners who will need electricity for The study estimates the life-cycle cost of an off-grid basic needs of cooking, lighting, refrigeration, entertainment, electrification project using solar photovoltaic system and and to power small-scale agro-based businesses and other compares it with the cost of paying for grid-electricity over the enterprises like soap making, tailoring, hairdressing, weaving same period assuming that grid-electricity is available. etc. Thus extending the grid will lead to low capacity Comparing the cost of off-grid electrification with grid- utilization due to low demand. Since private firms are usually extension is more appropriate; however, data on the cost of driven by profit maximization motives, they may be unwilling grid extension in northern Nigeria are scarce and obtaining to extend the distribution network to these rural communities such will require a terrain-specific feasibility study. as it may not be cost-beneficial. Table 2: Average monthly solar irradiation level in some towns in North-East 2 geopolitical zone of Nigeria (in kWh/m /day) This situation gives rise to the possibility of Maiduguri Nguru Bauchi Damaturu Gashua Gombe providing electricity access in some of these rural January 5.61 5.53 5.74 5.63 5.59 5.68 communities using off-grid electrification. The World Bank February 6.3 6.34 6.21 6.34 6.41 6.19 [6] notes that off-grid electrification is usually considered March 6.7 6.77 6.4 6.72 6.83 6.45 when providing electricity access to small, low-income rural April 6.62 6.97 6.12 6.78 6.98 6.43 May 6.36 6.82 5.88 6.53 6.72 6.21 communities far from the existing grid, with dispersed June 5.97 6.62 5.66 6.24 6.53 5.79 settlement pattern. Off-grid electrification provides similar July 5.43 6 5.25 5.58 6 5.28 benefits as grid extension in terms of enhancing the standard August 5.14 5.58 4.95 5.27 5.57 5 of living and stimulating the creation of micro-enterprises that September 5.57 5.86 5.43 5.68 5.78 5.36 increase overall economic benefit, although the available October 5.89 5.97 5.85 5.86 5.89 5.72 November 5.84 5.7 6.01 5.62 5.7 5.7 power is lower [6].
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