Environmental and economic appraisal of power generation capacity expansion plan in Nigeria

The power sector in Nigeria is undergoing structural reforms aimed at improving and expanding the current grid generation capacity and distribution network. The Government has injected huge funds into this sector while also granting licences to private companies for the provision of electricity. It is also aiming to increase electricity generation capacity to 25,000 MW by 2020 from the current installed capacity of 6500 MW while also pledging to connect 75% of the population to the grid from the current 40% by 2025. This paper sets out to analyse the implications of the energy policy in Nigeria and presents the life cycle environmental and economic analysis of the current and future electricity sector. The results show that all the life cycle impacts and economic costs increase significantly over the time-period (2003-2030), but at different rates depending on the types of technologies deployed. Renewables such as large hydro and solar proposed by the Government have a potential to reduce the overall life cycle environmental impacts from the electricity mix, considering their lower environmental impacts compared to fossil-fuels. However, this requires a five-fold increase in grid investments from the current US$1.7 billion per year to US$9.40 billion by 2030. © 2010 Elsevier Ltd. All rights reserved.