ECONOMICS OF A SMALL WIND PUMP SYSTEM BASED ON ESTIMATED PETROL AND DIESEL COST SAVINGS FROM USE IN NORTHERN NIGERIA

Eleven years of daily wind records were analyzed for the estimation of available wind energy for water pumping at three selected locations in Northern Nigeria, namely Jos, Kano and Sokoto. This formed the basis for investigating the economics of the use of an imported small wind pump under a deregulated energy market environment. The estimated available energy for water pumping at the installation height of 9m was 190 kwh/m2/yr for Jos, 225 kwh/m2/yr for Kano and 348 kwh/m2/yr for Sokoto. The monetary value of the available wind energy was considered as saved energy cost. The saved cost was obtained in terms of the unsubsidized cost of the petrol and diesel that an internal combustion engine (ICE) would consume to produce energy equivalent to the available wind energy. At the prevailing interest and inflation rates of 21.96 % and 12.1% respectively, and unsubsidized prices of N 131.32/l and N 140.23/l for petrol and diesel respectively, investment in the wind pump was not found to be economically competitive relative to using a pump with ICE prime mover at the three locations unless the cost of the pump was subsidized. For Sokoto, the estimated subsidy for initial cost of the wind pump required for the investment to be competitive relative to the use of a pump driven by a petrol ICE was 16%. Relative to a pump driven by a diesel ICE, the required subsidy was 24%. The corresponding subsidy estimates for Kano were 48 % and 51 % respectively. For Jos, it was 56% relative to the use of a pump driven by a petrol ICE and 60 % relative to that driven by a diesel ICE. Considering the potential environmental and social and environmental benefits however, subsidy support by government for local manufacturing of the pumps was recommended since shipping cost and custom tariff constituted over 36% of the initial cost of the wind pump.