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: 1866 Downloads: 708
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
References
[01] Abolarin, S. (2012): Lecture note on elements of economics, department of mechanical engineering, Ahmadu Bello University Zaria.
[02] Aderinokun, K. (2011): PHCN Transferred to NELMCO, Thisday newspaper. Downloaded 11 September 2012 from http://www.thisdaylive.com/articles/phcn-tranferred-tonelmco/84995/
[03] Akinsuilire, O. (2009): financial mgt 7thedition, ceemol Nig .ltd
[04] Council for Renewable Energy, Nigeria (CREN): Nigeria Electricity Crunch. 2009. available at www.renewablenigeria.org, Google Scholar.
[05] ESHA (1998): Layman’s Guide book on how to develop a Small Hydro Site.
[06] HRC Training manual on SHP (2006), Hangzhon Regional Center (HRC) for SHP, Domestically called, National Research Institute for Rural Electrification, China.
[07] National Bureau of Statistics. Downloaded on 14 February 2013 from http//www.premiumtimesng.com/business/130887-finance-experts-say-Nigeria-inflation-to-rise-in-second-quarter.html
[08] NASENI SHP, (2009). Making SHP Deployment for Electricity Generation Viable and Sustainable through the Development of Local Manufacturing Capacity for SHP Equipment.
[09] Nnaji C, et al.: CIA World Factbook. Edited by: Nnaji CE, Uzoma CC. Nigeria; 2010. http://www.cia.gov/library/publications/the-world-factbook/geos/ni.htmlGoogle Scholar
[10] NRC (Natural Resources Canada). 2012. Clean Energy Project Analysis: RETScreen Engineering & Cases Textbook. Retrieved August 17, 2012, from Download Free: http://www.retscreen.net/ang/home.php
[11] Ohunakin, O. S., Ojolo, S. J., Ajayi, O. O. (2011). Small hydropower (SHP) development in Nigeria: An assessment. Renewable and Sustainable Energy Reviews 15, 2006-13.
[12] Rai GD: Non- Conventional Energy Sources. Khanna Publishers, Delhi; 2004. (Google Scholar)
[13] Trading Economies, (2012). Financial Rates and Lending- Retrieved November 14, 2013, from http:/www.tradingeconomies.com/Nigeria/in....
600 ATLANTIC AVE, BOSTON,
MA 02210, USA
+001-6179630233
AIS is an academia-oriented and non-commercial institute aiming at providing users with a way to quickly and easily get the academic and scientific information.
Copyright © 2014 - American Institute of Science except certain content provided by third parties.