JOURNAL OF NEWVIEWS IN ENGINEERING

AND TECHNOLOGY (JNET

Vol 2 No1 May 2019

Comparative Cost Analysis Between Solar Energy and

Diesel Generator as a Power Supply for Airtel Switch Base
Port Harcourt
Idoniboyebu, D.C, Braide, S.L, MADU, Matthew Chuks.
nzechuks@yahoo.com.

Nigeria's inconsistent power supply and the

ABSTRACT: complete lack of power in the majority of rural
This study evaluates the comparative cost analysis of the use areas have forced telecoms service providers to
of solar energy from solar PV as the source of power against turn to alternative power sources such power
the Diesel generator being used at Airtel Switch Port
Harcourt. Cost analysis were conducted for short term
generating equipment that run on fossil fuels like
(5years), midterm (15years) and longterm (25years). It was diesel and gasoline (Okedere et al., 2021).
found that; solar PV was 84.4%, 89.9% and 87.7% more cost The Nigerian telecommunications industry is now
effective for a 5year, 15years and 25 years period one of the ten fastest growing telecommunications
respectively. Therefore, considering the cost analysis for sectors worldwide and the fastest expanding
short-, mid- and long-term operations, excluding inflationary
trends, cost of maintenance of diesel generators, oil change
market in Africa. According to recent reports, the
and any other equipment change, Solar PV was found to be Nigerian telecommunications industry managed
more cost effective as the source of power supply at Airtel over 135 million active users as of the end of 2014,
switch base Port Harcourt. and between 2003 and 2015, the base of Nigerian
telecoms subscribers grew dramatically
(Abdulmula et al., 2022).
Keywords: Solar PV, Short-term, midterm,
Due to this, the service provider's average energy
longterm, cost effectiveness.
requirements to supply telecom services have also
gone up. This usually increases the cost of
1. INTRODUCTION:
operation which in turn results in higher tariffs,
Every contemporary civilization places a high
call and data rates. The competition among the
value on energy since it is the cornerstone of the
current network providers has prompted studies on
society's social and economic development Blaće,
how to enhance the tariff so that it is reasonable for
and co. (2012). Electricity is the most common and
the burgeoning user base. This initiative has
most utilized form of energy globally.
prompted telecommunications providers in Nigeria
Telecommunication, like every other industry in
to begin exploring for methods to reduce their
contemporary civilization, depends entirely on
ongoing operating costs and other costs. Therefore,
electricity to function. Due to this complete
efforts to save energy and cut greenhouse gas
reliance on power for operation, the
emissions (GHG) are viewed as one of the safest
telecommunications network must constantly
paths to adopting sustainable business practices in
contend with rising national grid demand for
the telecommunications sector (Ojo et al., 2015).
electricity. According to Blaće et al., (2012), the
In order to mitigate this trend, it is imperative to
telecommunications industry generally uses 4% of
work out modalities and new sources of power that
the world's power.
are more cost effective in this case solar.
Several studies have been resubmitted on the use
of solar energy as a cost effective alternative 2. MATERIALS AND METHODS:
source of power. 2.1 Material Selection
A report on the techno-economic optimization of a 2.1.1 Solar Panel
standalone PV/PHS/battery system for very low A solar panel is an assembly of photo-voltaic cells
load scenarios was given by Kumar and Biswas in mounted in a framework for installation. Solar
2017. Their research focused on the viability of panels use sunlight as a source of energy to
solar PV-based pumped hydro storage (PHS) and generate direct current electricity. A PV junction
battery bank storage systems for rated loads under box is attached to the back of the solar panel and
30 KW. Their efforts were directed on system functions as its output interface. The operation of a
optimization, cost reduction, and practical solar panel is based on photo-voltaic effect.
implementation of energy storage. The RES The photovoltaic effect, very similar in nature to
components were modeled and sized, and the photoelectric effect, is the physical
individual RESs were techno-economically phenomenon responsible for the creation of an
optimized using levelized cost of energy (COE) as electrical potential difference (voltage) in a
the objective function at 100%. In order to material when exposed to light. The selection of
optimize the size and storage of solar PV, two panel size is based on the total power that is
meta-heuristic optimization algorithms—Firefly required to be generated. In the case of Airtel
Algorithm (FA) and Grey Wolf Optimization Switch Base Port Harcourt, the power required to
(GWO)—as well as Genetic Algorithm (GA) were be generated as discussed in 3.2 is set at 500KW.
used. Their study's findings showed that using a Therefore, 380W solar panels was assumed best
tiny battery bank with PHS significantly lowered suit this purpose. Consequently, the number of
the upper reservoir capacity while generating the panels required to produce the required power
least amount of extra energy. output of 500KW can be determined by equation 1.
In order to create a green off-grid communications
tower to replace diesel generators in Malaysia,
Abdulmula et al. (2022) studied the technical and
cost-effective performance of available renewable
energy sources. Diesel generators, sun, wind, and
pico-hydro energy were all compared and
evaluated for this purpose. In order to identify the
best economically viable system, the modeling of
hybrid powering systems was also carried out
using the hybrid optimization model for energy
(HOMER) simulation. According to the
optimization results, the 2 kW pico-hydropower
and battery are the best configurations for 2.2 Batteries
powering off-grid telecommunication towers in A battery is a collection of cells used in storing DC
Malaysia with the lowest net present cost (NPC) voltage. Batteries use the chemical potential of
and cost of energy, followed by a hybrid high- their composite material to store energy. From the
efficiency fixed photovoltaic (PV) system with assessment of equipment at Airtel Switch Port
battery (COE). These costs of NPC and COE were Harcourt, it is observed that there are already
discovered to be lower by 17.45%, 16.45%, 15.9%, preinstalled batteries totaling 364 of three different
and 15.5%, respectively, than those of diesel ratings: 6V150AH, 6V200AH and 12V150AH
generators and batteries. A ten-year payback which are being used in conjunction with inverters
period was also shown by the economic analysis of and UPS as backup power supply sources.
the yearly cash flow of the high-efficiency solar Therefore, these batteries which are already
fixed PV panels system compared to the diesel grouped in racks for supply of power to individual
generator with the battery system.
systems, equipment and appliances will be
sufficient to power these appliances and equipment 2020 Diesel Consumption (Liters
at Airtel Switch Yard. 1500

DIESEL CONSUMPTION (LITERS)

2.3 Inverter 1000

500
An inverter is a device which converts direct
current into alternating current form of electricity. 0

139

346
116

162
185
208
231
254
277
300
323
24
47
70
93
1
Airtel Switch yard Port Harcourt has an installed
inverter capacity of two 6KVA, one 12KV and a DAY
40KVA UPS. These installed systems are
responsible for providing alternative power supply 2020 Diesel Consumption (Liters)
during generator downtime. Thus, these systems
can be repurposed to provide continuous power
supply for all equipment, and appliances at the
Figure2:Diesel Consumption for 2020
Switch Yard.
3. RESULTS AND DISCUSSION
2021 Diesel Consumption
3.1 Cost Implications of using Diesel at Airtel
Switch Base Port Harcourt (Liters)
1500
Diesel consumption data was obtained from Airtel DIESEL CONSUMPTION (LITERS)
Switch Yard Port Harcourt for two years, 2020 and 1000
2021. This data is presented in Figures 1, 2 and 3.
500

DIESEL CONSUMPTION AT AIRTEL 0

SWITCH YARD FOR 2020 AND
139
116

162
185
208
231
254
277
300
323
346
24
47
70
93
1

2021 DAY

1500
2021 Diesel Consumption (Liters)
DIESEL COMSUMPTION (LITERS)

1000
500
0
115

161
23
46
69
92

138

184
207
230
253
276
299
322
345

Figure3: Diesel Consumption for 2021

DAY

2020 2021

Figure1:Diesel Consumption for 2020 and 2021

Table 1: : Total Cost Incurred on Diesel for 2020 000.
and 2021 3.3 Short Term Cost

Year Total Diesel Total Cost Incurred 3.3.1 Short Term Cost of Using Diesel

Consumed (L) NGN(Naira) Considering a short-term duration of 5 years, the

cost effectiveness of using solar as opposed to
diesel at Airtel Switch Yard Port Harcourt can be
2020 247561 247561 × 500 = computed by using the average volume of diesel
consumed in two years as the Diesel for two years
123,780,500 a benchmark and setting a benchmark price of
NGN500/L for diesel. Therefore,
247561+280918
2021 280918 280918 × 500= 𝑉𝐴𝐷 = = 264239.5𝐿 (1)
2

140,459,00
Therefore, for a short-term period of 5 years, cost
of running Airtel Switch yard on diesel generator,
excluding other cost implications such as servicing
From the data presented in Table 1, the diesel and oil change, the cost incurred is calculated to be
consumption for two years 2020 and 2021 is
computed to be 247561 Liters and 280918L 𝑉𝐴𝐷 × 𝑛 × 𝑃 (2)
respectively. Thus, taking the cost of diesel to be
500 naira per liter, the total cost incurred for the 264239.5 × 5 × 500 = 𝑁𝐺𝑁660,598,750
two years are computed to be ₦123780500 and
₦14045900 respectively.
Where;
3.2 Cost Implications of Installing Solar Energy
at Airtel Switch Base Port Harcourt
𝑉𝐴𝐷 = 𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑉𝑜𝑙𝑢𝑚𝑒 𝑜𝑓 𝑑𝑖𝑒𝑠𝑒𝑙 𝑐𝑜𝑛𝑠𝑢𝑚𝑒𝑑
A 380W solar PV panel is selected which goes for
75,000 naira as of 02/06/2022. Given that the total
number of solar panels required to supply 500KW 𝑛 = 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑦𝑒𝑎𝑟𝑠
of electric power is calculated to be therefore, the
cost of purchase of solar panels can be computed
to be: 𝑃 = 𝑏𝑒𝑛𝑐ℎ𝑚𝑎𝑟𝑘 𝑐𝑜𝑠𝑡 𝑝𝑒𝑟 𝑙𝑖𝑡𝑒𝑟 𝑜𝑓 𝑑𝑖𝑒𝑠𝑒𝑙
75000x1316=₦198,700,000
Taking the cost of mounting frame for one panel to 3.3.2 Short Term Cost of Using Solar PV
be NGN800 according to Adejuyigbe et al. (2013), System
factoring in inflation, the cost of mounting frame From Section 2.3, the cost of installation of solar
for a one panel can therefore be set at 1200. PV was computed to be. However, since no new
Cost of installation of Panel is therefore given as: installation of panels would be required within a
short-term period of 5 years, short term cost of
1200x1316= ₦1,578,200 using solar PV as a source of power at Airtel
Estimating cost of Wiring at ₦2,500,000 Switch can be said to be same as the cost of
installation.
Therefore, overall cost of installation of solar PV
Therefore, comparing the short-term cost of solar
panels at Airtel Switch Base is given as
PV which stands at and that of diesel which stands
₦98,700,000+₦1,578,200+₦2,500,000=₦102,779,
at, a total savings of could be made through the
implementation of solar PV at Airtel Switch Base. 𝑁𝐺𝑁1,779,396,250
This accounts for × 100 = 89.8%
𝑁𝐺𝑁1,981,796,250
𝑁𝐺𝑁557,819,750
× 100=84.44%
𝑁𝐺𝑁660,598,750 Thus, solar PV is 89.8% more cost effective than
diesel for a mid-term period of 15 years.
Thus, it can be inferred that excluding all other
3.5 Long Term Cost
costs incurred such as maintenance of generator,
Considering a long-term operation of 25 years, the
oil change, and rewiring, the use of solar PV as
cost effectiveness of solar PV as opposed to diesel
opposed to diesel generators at Airtel Switch Base
generator can be computed by substituting n=25
Port Harcourt is found to be 84.4% more cost
into equation 2
effective, allowing for a total savings of
Therefore, the long-term cost of operating on
NGN557,819,750.
Diesel can .be calculated as:
𝑉𝐴𝐷 × 𝑛 × 𝑃 (4)
3.4 Mid Term Cost
For a mid-term range of 15years, the cost
effectiveness of solar PV as opposed to diesel 264239.5 × 25 × 500 = 𝑁𝐺𝑁3,302,993,75
generator can be computed by substituting n=15
into equation 3.17. For that of solar PV, assuming the solar PV panels
Therefore, the mid-term cost of operating on are totally overhauled every 6 years according to
Diesel can be calculated as: Ebrahim et al. (2021), long-term cost of using solar
𝑉𝐴𝐷 × 𝑛 × 𝑃 (3) PV can be calculated as
(𝐶𝑜𝑠𝑡 𝑜𝑓 𝑖𝑛𝑠𝑡𝑎𝑙𝑙𝑎𝑡𝑖𝑜𝑛 𝑜𝑓 𝑃𝑎𝑛𝑒𝑙 +
264239.5 × 15 × 500 = 𝑁𝐺𝑁1,981,796,250
𝑒𝑠𝑡𝑖𝑚𝑎𝑡𝑒𝑑 𝑐𝑜𝑠𝑡 𝑜𝑓 𝑤𝑖𝑟𝑖𝑛𝑔) × 4

For that of solar PV, assuming the solar PV panels

are totally overhauled every 6 years according to ( 98,700,000 + 2,500,000) × 4
Ebrahim et al. (2021), mid-term cost of using solar
PV can be calculated as = 𝑁𝐺𝑁404,800,000
(𝐶𝑜𝑠𝑡 𝑜𝑓 𝑖𝑛𝑠𝑡𝑎𝑙𝑙𝑎𝑡𝑖𝑜𝑛 𝑜𝑓 𝑃𝑎𝑛𝑒𝑙 +
Thus, the long-term operating cost effectiveness of
𝑒𝑠𝑡𝑖𝑚𝑎𝑡𝑒𝑑 𝑐𝑜𝑠𝑡 𝑜𝑓 𝑤𝑖𝑟𝑖𝑛𝑔) × 2 deploying solar PV as opposed to diesel can be
calculated as:
( 98,700,000 + 2,500,000) × 2 = 𝑁𝐺𝑁3,302,993,750 − 𝑁𝐺𝑁404,800,000
𝑁𝐺𝑁202,400,000 = 𝑁𝐺𝑁2,898,193,750

Thus, in the mid-term, the cost effectiveness of 𝑁𝐺𝑁2,898,193,750

deploying solar PV as opposed to diesel can be × 100 = 87.7%
𝑁𝐺𝑁3,302,993,750
calculated as:

𝐺𝑁1,981,796,250 − 𝑁𝐺𝑁202,400,000 Thus, it is 87.7% more cost effective in operating

on solar PV than diesel for a long-term period of
= 𝑁𝐺𝑁1,779,396,250 25 years.
 Engr. Dr. P. Elechi, Engr. Dr. Sunny Orike, Engr,
4. CONCLUSION: Nwokoma, Mr. Iwuogu Steven. I wish to
Solar energy is energy derived from the Sun, appreciate the efforts of both the academic and
which reaches the earth in the form of solar technical staff of the Department of Electronic
radiation. It is estimated that the amount of solar Engineering, Rivers State University Port
energy which is incident on the earth is Harcourt, for their willing disposition in the course
1000Trillion watts. Therefore, it is important to of this program.
harness such energy in meeting our energy
demands. Cost analysis were conducted to My appreciations go to my external supervisor,
determine the cost effectiveness of deploying solar Engr. Prof. E. N. C Okafor, my reviewer Engr. I F
PV as opposed to diesel generating set at Airtel Dick, my examiner Engr. T Kombo-Johnson for
Switch Port Harcourt. For a short-term operating making my work thorough and standard,
period of 5years, it was found that would be
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