Techno-Economic Assessment of the Viability of Commercial Solar PV System in Port Harcourt, Rivers State, Nigeria

Muzan Williams Ijeoma, Hao Chen, Michael Carbajales-Dale () and Rahimat Oyiza Yakubu
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Muzan Williams Ijeoma: Department of Environmental Engineering and Earth Sciences, Clemson University, Clemson, SC 29634, USA
Hao Chen: Department of Environmental Engineering and Earth Sciences, Clemson University, Clemson, SC 29634, USA
Michael Carbajales-Dale: Department of Environmental Engineering and Earth Sciences, Clemson University, Clemson, SC 29634, USA
Rahimat Oyiza Yakubu: Department of Mechanical Engineering, Kwame Nkrumah University of Science and Technology, Kumasi AK-385-1973, Ghana

Energies, 2023, vol. 16, issue 19, 1-25

Abstract: Supermarkets in Port Harcourt (PH) city, Nigeria, predominantly rely on diesel electricity generation due to grid instability, leading to high electricity prices. Although solar photovoltaic (PV) systems have been proposed as an alternative, these supermarkets have yet to adopt them, mainly due to high investment costs and a lack of awareness of the long-term financial and environmental benefits. This paper examines the technical and economic practicality of a PV system for these supermarkets using the PVsyst software and a spreadsheet model. Solar resources showed that PH has a daily average solar radiation and temperature of 4.21 kWh/m 2 /day and 25.73 °C, respectively. Market Square, the supermarket with the highest peak power demand of 59.8 kW and a 561 kWh/day load profile, was chosen as a case study. A proposed PV system with a power capacity of 232 kW, battery storage capacity of 34,021 Ah, a charge controller size of 100 A/560 V, and an inverter with a power rating of 60 V/75 kW has been designed to meet the load demand. The economic analysis showed a $266,936 life cycle cost, $0.14 per kWh levelized cost of electricity (LCOE), a 4-year simple payback time, and a 20.5% internal rate of return (IRR). The PV system is feasible due to its positive net present value (NPV) of $165,322 and carbon savings of 582 tCO 2 /year.

Keywords: PV design; solar energy; feasibility analysis; life cycle cost; levelized cost of electricity; net present value; simple payback time; internal rate of return; economic assessment; environmental assessment (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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