Analysis of Cost-Effectiveness of Grid-Based and Off-Grid Electrification Designs in Nigeria

The significance of electricity access to man's socioeconomic development cannot be overstated. putting competing demands on limited resources. Electrification as one of the demands requires efficient use of these scarce resources using appropriate electrification plans that would improve the attractiveness of policymakers to electrification which in turn brings the development to rural and extending communities. There is a need for a rural-electrification planning structure that considers social equity and balanced regional development through the most cost-effective investment options delivering a reasonable level of service. The objectives of the study were to compare two electrification plans including extending the existing grid distribution system and implementing renewable energy-based rural electrification (RE) for two dissimilar communities. Grid extension, which has a lower initial installation cost and is a suitable option where there are commercial and industrial consumers, is the most economically feasible electrification plan for a community that is close to the existing power grid or one that is growing, according to the study's findings. However, results of the study also show that off-grid electrification model is more cost-effective than a grid extension for electrifying far-from-the-grid un-electrified areas. This model has a higher functional value, economic value, and suitability for remote communities because these areas have fewer infrastructures and off-grid systems are typically designed for basic lighting and residential applications.