Techno-Economic Optimization of Mini-Grid Systems in Nigeria: A Case Study of a PV–Battery–Diesel Hybrid System

Abstract

This paper presents a feasibility analysis of the technical, environmental, and economic sustainability of an existing mini-grid technology system in Nigeria. The study investigates the cost and other operational parameters of the Gbamu-Gbamu solar–battery–diesel hybrid mini-grid, specifically the 85 kWp solar PV installation in the Ijebu East Local Government area of Ogun state. Situated within the Owo forest in South-West Nigeria, the mini-grid aims to reduce the effects of global warming and promote sustainable technological development in rural communities by increasing energy access through renewable sources. To assess the system’s viability, this research utilized RETScreen Expert software to validate the techno-economic and environmental sustainability of the installed mini-grid solar–PV–battery–diesel system in the region. Climatic data for the study were obtained from the National Aeronautics and Space Administration (NASA). The results demonstrate that the system is economically feasible and environmentally viable, as indicated by the positive net present value (NPV) and an average monthly irradiance of 4.78 kW/h/m2. Furthermore, the system achieved a 92.9% reduction in GHG emissions, provided a reasonable payback period of four years, and enabled a yearly electricity export of 203 MWh. These findings highlight the system’s potential to enhance energy access and mitigate climate change.

Keywords

• techno-economic analysis
• optimization
• hybrid system
• feasibility analysis
• energy access
• NPV