Techno-Economic Assessment of Municipal Natural Gas-Powered (Off-Grid) Alternative Electric Power Supply in Lagos State, Nigeria
Abstract
This study examined the techno-economic viability of natural gas-powered (off-grid) alternative electric-power infrastructure for municipalities in Lagos State, Nigeria as a strategic model for regional/national power infrastructure development. Techno-economic data were obtained through literature, questionnaire and site inspection. An energy project foresight analysis framework was used. The study determined appropriate power-plant locations at Apapa, Ikeja and Festac-Town Divisions of Lagos State. Technical/economic requirements per power plant included a 15-MW power-plant design over 5.145 acres, annual natural-gas requirements of approximately 160 million scf, and investments of N 5.2 – 6.7 billion. Profitability Indices include Net Present Values of N 107.63 – 1,636.93 million, 1-year break-even time per location, and payback period of 12 – 20 years. Techno-economic benefits/location/annum were 46,720 MWh of electricity, fuel-cost savings of N 765.7 million, and CO2 emissions savings of 3.45 Metric Kilotonnes. The study concluded that the infrastructure was techno-economically viable, and a suitable template for Nigeria.
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