Engineering Feasibility Study on Multi- Functional Platforms (MFPs) in Ghana

Loading...
Thumbnail Image
Date
2003-11-25
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
The Multi-Functional Platform (MFP) as decentralised energy infrastructure is designed to substitute for the human motive power of poor rural women and men at the bottom of the energy ladder. The MFP uses a diesel engine of the types that are widely available in rural Africa. The diesel engine used in the MFP is the Lister-type diesel engine. The research involved carrying out a market survey on MFP end-use equipment in Ghana to gather data on prices, manufacturers and suppliers of equipment. A community selected in the Northern Region of Ghana was used for the survey. The survey was to collect data to determine the feasibility of establishing an MFP in this community that can serve as a reference for establishing MFPs in similar communities in Ghana. A financial analysis to determine the internal rate of return (IRR) and payback period of the MFP was conducted and the financial implication of running the MFP on Jatropha oil was also analysed. The total investment cost for the basic MFP was US$4,306 with net annual revenue of US$7,000. The return on investment is 163% and it would take 7.4 months to payback. The investment cost for the MFP with mini-electricity was US$19,923 with net annual revenue of US$5,965. The return on investment is 27% and it would take 3.3 years to payback. With seed price of $0.28 per kg and oil price of US$1.52 per litre, the MFPs fuelled with Jatropha oil showed an increase of fuel cost from $467 to $1,381 and $2,571 to $7,602 for the basic MFP and MFP with mini-electricity grid, respectively. This reduced the return on investment for the basic MFP to 141% and increased payback time to 8.5 months. The MFP with mini-electricity grid showed a negative return on investment of -12%. In order for the people in the community to be active participants in future feasibility studies on the MFP, it was recommended that a participatory feasibility study be conducted. In addition, it was recommended to conduct a further study on the provision of water by the MFP. A financial analysis to determine the impact of surrounding villages/communities on the MFP as well as determining a fair Jatropha oil price that would make it financially viable in the MFP was also recommended.
Description
A thesis submitted to the Board of Postgraduate Studies, Kwame Nkrumah University of Science and Technology in partial fulfilment of the requirements for the award of Master of Science, 2003
Keywords
Citation
Collections