Economic Analysis of Wind Farm Feasibility in Nigerian Defence Academy, Afaka, Kaduna

Abstract

The challenge of providing adequate amount of energy is a global issue. Adopting renewable energy for electricity production is a notable objective, several countries have since began the process of harnessing and developing wind energy into electricity. A modern wind turbine is a device that converts wind energy into electricity and wind farm (wind power plant) is an assembly of wind turbines that are site operated for the generation of electrical energy. In order to achieve energy usage capacity (5MW) in Nigerian Defence Academy permanent site Afaka Kaduna there is need for wind farm. Several related literatures were reviewed and based on the reviewed few studies have been conducted using Afaka Kaduna wind speed, the studies were done on the economic analysis only evaluated the levelized cost of electricity. In order to completely described the economic feasibility of a study, net present value
(NPV), internal rate of return (IRR) and payback period needs to be determined. This study carried out the feasibility analysis of a wind farm in Nigerian Defence Academy permanent site Afaka, Kaduna. Twelve years daily wind speed data ranging from 2009-2020 was obtained from Nigeria Meteorological Agency (NiMet) to analyzed the wind profile of the study site. The method employed was Weibull 2-parameter probability distribution function for the analysis of the site wind profile and Microsoft excel for the analysis of the net present value (NPV), internal rate of return (IRR) and payback period (PBP). The raw wind speed obtained was analyzed to have a minimum and maximum average annual wind speed values of 5.6m/s and 9.5m/s in 2014 and 2020 respectively. From the Weibull analyses the standard deviation, shape factor (k), scale factor c, power density, theoretical energy and extractable energy were found to be 0.92, 22.84, 9.26m/s, 529.33W/m², 293.83W/m² and 495.50W/m² respectively.The cost analysis for a selected wind turbine from E40 ENERCON Manufacturer with specification that fits the purposed study site was 114, 216,087 NGN. The total cost of the proposed 5MW capacity power plant with ten wind turbines was 1, 142, 160, 870 NGN. The result revealed at 10% interest rate the net present value (NPV), internal rate of return (IRR) and payback period (PBP) were 174,337,863.19 NGN, -84.74% and 10 years respectively. The cost of kilowatt hour was estimated to be #48 which is moderately better than what is obtainable. Hence, the analysis of the study area can be used for establishment of wind farm.