Analysis of Cost for Power Generation Plants Case Study Nigeria

Nigeria is blessed with oil and natural resources but the country cannot be said to have ever had adequate supply of electric power in the history of its electricity generation. This might get worse, as the country’s population increases and economic development is calling for more demand of energy. It is therefore, imperative that adequate measures should be taken from our power plants to cater for Nigeria impending industrialization and its energy crisis which leaves many industries running at high cost and keeps many private homes in blackout. Since power generating plant is the engine room that drive industrialization, well-being and comfort for man and its environment. This work considered the analysis of cost for power generation plants case study Nigeria with the view to determine the best technique that can be used to achieve future planning installation of thermal and hydro power plant in order to optimize cost savings. Calculations and analysis were made using annual straight line depreciating reserve , annual diminishing value reserve and annual sinking fund reserve with the aim to input the best technique that will investigate the true trend of cost of installation into the projected future plans between years 2011–2035 (25 years). The study revealed that ASLD gives consistent linear values as compared to the two other techniques (ADV_R and ASF. The annual straight-line depreciation reserve cost of installation of afam thermal power plant in 2011 was (85, 480,000,000.00) and ASF_R was N53, 914,223,700.00 while ADV_{R was 195. In the case of Kainji hydro power plant, the and ASFwasN5, 155,200,000, he subsequent cost of installation of thermal and hydro power plants was obtained and conducted via excel platform from 2011-2035.}