Empirical Analysis of a Decentralized Energy System in Nigeria: Using Microgrids for Sustainability and Resilience

Worldwide recognition of microgrids as effective and eco-friendly energy solutions is growing. However, their use in Nigerian communities is still quite limited. This paper examines Nigeria’s feasibility of successfully implementing decentralized energy systems, particularly microgrids, to enhance sustainability and resilience. The research combines renewable energy sources, especially solar photovoltaic (PV) systems, with advanced energy storage systems (ESS). This combination aims to improve electricity access, support electric vehicle infrastructure, and ensure stable power, particularly during outages. Using case studies and simulation models, the paper evaluates how cost-effective and efficient microgrids are in reducing energy costs, promoting sustainable energy practices, and optimizing energy use. The findings show that a solar PV system alone can generate 8,623.7 kWh, cutting daily electricity costs by 42.9%. When combined with ESS and diesel generators (DGen), the daily electricity cost reduction is 37.2%. The paper concludes by proposing a community-based microgrid model that can work independently and alongside the national grid. This model aims to tackle Nigeria’s energy challenges by offering a reliable, cost-effective, and sustainable energy solution.