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 US$ 12.7 – 16.42 million. Profitability Indices include Net Present Value of US$ 5.03 million and 1-year break-even time per location, with payback period of 12 – 20 years. Techno-economic benefits/location/annum were 46,720 MWh of electricity, estimated profits of US$ 0.84 million, and fuel cost savings of US$ 1.87 million. The study concluded that the infrastructure was technically and economically viable, and a suitable template for Nigeria.

Suggested citation

Ibikunle Ogundari , Phillip Ayoola , Hakeem Bakare (2024). Techno-Economic Assessment of Municipal Natural Gas-Powered (Off Grid) Alternative Electric Power Supply in Lagos State, Nigeria Koozakar Proceedings, 2(1). https://doi.org/10.69798/27577407

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