International Journal of Energy and Sustainable Development
Articles Information
International Journal of Energy and Sustainable Development, Vol.2, No.1, Mar. 2017, Pub. Date: Jun. 15, 2017
Economic Viability of a Proposed Run-off Scheme Small Hydropower Plant at Onuaku River, Abia State, Nigeria
Pages: 1-7 Views: 135 Downloads: 64
Authors
[01] O. A. Chinyere, Department of Engineering Infrastructure, Renewable Energy (Small Hydropower) Unit, National Agency for Science and Engineering Infrastructure (NASENI), Idu, Abuja, Nigeria.
[02] E. A. Ajani, Department of Engineering Infrastructure, Renewable Energy (Small Hydropower) Unit, National Agency for Science and Engineering Infrastructure (NASENI), Idu, Abuja, Nigeria.
[03] E. O. Ojo, Department of Engineering Infrastructure, Renewable Energy (Small Hydropower) Unit, National Agency for Science and Engineering Infrastructure (NASENI), Idu, Abuja, Nigeria.
[04] N. R. Obasi, Department of Mechanical Engineering, Ahmadu Bello University, Zaria, Nigeria.
[05] C. Okonkwo, Department of Mechanical Engineering, Ahmadu Bello University, Zaria, Nigeria.
Abstract
In this study the financial and economic feasibility of a proposed small hydropower plant at Onuaku River in Aku community of Abia state, Nigeria was evaluated using indicators like the Net Present Value (NPV), Payback Period, Benefit Cost Ratio (BCR) and Internal Rate of Return (IRR) to ascertain the feasibility and viability of the project. Here the breakeven point of the project, cash flow, present and future value of project as well as the expected yearly revenue of the project is shown in advance within the economic life or span of the project. With an investment cost of less than N12million, a NPV of three million six hundred and thirty thousand, fifty seven naira fifty eight kobo (N3,630,057.58) was gotten at the 30 years life span of the project with an IRR of 14.25%. Also from the analysis a project Payback Period of ten years which is timely enough for the client or investor to recover the investment made on a project that can span up to thirty years (minimum) - fifty years (maximum). The BCR of the project from analysis is 1.23 which is above unity. Hence the results from the analysis above have provided additional information for the decision makers, client and the design engineer and scientist to see reasons why this project should be embarked on using the mentioned economic tools.
Keywords
Small Hydropower, Feasibility, Renewable, Energy, Onuaku River
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