TRANSITIONING FROM DIESEL TO SOLAR: A COMPARATIVE COST ANALYSIS FOR ELECTRICITY GENERATION AT FEDERAL POLYTECHNIC NEKEDE, OWERRI.

Abstract

Inadequate electric power security in Nigeria has imposed significant costs in all sectors. This research presents a comparative cost analysis of electricity generation from diesel generators and a proposed photovoltaic (PV) power plant at the Federal Polytechnic Nekede, Owerri. Given the ongoing challenges in Nigeria's electricity supply sector, including frequent outages and high operational costs of diesel generators, this study aims to assess and compare the economic viability of these two energy sources. A life cycle costing approach was employed to analyze the total costs of ownership over the lifespan of each energy generation method, including initial investment, operating, maintenance, and fuel costs. The results indicate that the empirical generation cost (EGC) from existing diesel generators is approximately , while the theoretical generation cost (TGC) associated with a zoned arrangement of diesel generators is estimated at . In contrast, the proposed solar photovoltaic power plant demonstrates a significant cost advantage, with a unit cost of electricity estimated at . These findings not only underline the high economic burden of relying on diesel- powered generators but also highlight the potential for renewable and reliable energy solutions to provide sustainable and cost-effective electricity for educational institutions in Nigeria.