# Nigeria Diesel Generator vs Grid Cost per kWh Calculator

> Source: https://netray.co/tools/nigeria-diesel-generator-vs-grid-cost-per-kwh-calculator
> Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems.
> Section: Free Tools

## Short answer

Work out the blended cost of electricity when diesel generators cover the hours the grid does not, and see how diesel price changes it.

## Category

cost-finance

## Region

Nigeria

## Audience

- Plant manager
- Finance manager
- Facilities manager

## Tool

**Kind:** calculator

**Currency:** NGN 

**Inputs:**

#### Monthly energy consumption

**Key:** load

**Type:** number

**Default:** 120000

**Min:** 0

**Step:** 1000

**Unit:** kWh

#### Share of energy from the grid

**Key:** grid_share

**Type:** slider

**Default:** 40

**Min:** 0

**Max:** 100

**Step:** 1

**Unit:** %

**Help:** The rest is generated on site.

#### Grid tariff

**Key:** grid_tariff

**Type:** number

**Default:** 209

**Min:** 0

**Step:** 5

**Unit:** NGN per kWh

**Help:** Use your Disco bill rate for your band, including fixed charges spread over kWh.

#### Diesel price

**Key:** diesel

**Type:** number

**Default:** 1250

**Min:** 0

**Step:** 25

**Unit:** NGN per litre

#### Generator output

**Key:** kwh_l

**Type:** number

**Default:** 3.2

**Min:** 1

**Max:** 5

**Step:** 0.1

**Unit:** kWh per litre

**Help:** Typical large set at good load: 3 to 3.8. Poorly loaded sets give much less.

#### Generator maintenance and operator cost

**Key:** om

**Type:** number

**Default:** 35

**Min:** 0

**Step:** 5

**Unit:** NGN per kWh

**Outputs:**

#### Generator cost per kWh

**Key:** gen_kwh

**Expr:** diesel / kwh_l + om

**Format:** decimal

**Primary:** true

#### Grid cost per kWh

**Key:** grid_kwh

**Expr:** grid_tariff

**Format:** decimal

#### Blended cost per kWh

**Key:** blend

**Expr:** (grid_share * grid_tariff + (100 - grid_share) * gen_kwh) / 100

**Format:** decimal

**Primary:** true

#### Diesel used per month

**Key:** litres

**Expr:** load * (100 - grid_share) / 100 / kwh_l

**Format:** number

#### Monthly electricity bill

**Key:** monthly

**Expr:** load * blend

**Format:** currency

#### Annual electricity cost

**Key:** annual

**Expr:** monthly * 12

**Format:** currency

#### Generator premium over grid

**Key:** premium

**Expr:** gen_kwh / grid_tariff

**Format:** decimal

**Description:** How many times more expensive a generated kWh is than a grid kWh.

**Chart:**

#### Blended cost per kWh vs diesel price

**Type:** line

**X:** diesel

**From:** 600

**To:** 2500

**Steps:** 20

**Series:**

- blend
- gen_kwh

**Disclaimer:** Tariffs and fuel prices change often. Use the latest bill and invoice values, and add fuel logistics, losses and generator depreciation if you need a full cost.

## Content

**Intro:** Many Nigerian factories pay grid tariffs for part of the day and run diesel for the rest. This calculator shows the true blended price per kWh, and how much of the bill is driven by diesel, so you can decide where solar, gas or a demand change would pay.

**Sections:**

#### How to use it

**Body:** Enter monthly kWh, the share that comes from the grid, your tariff, the diesel price and the generator efficiency in kWh per litre. Add the maintenance and operator cost per kWh. The chart moves the diesel price to show how fast the blended cost changes.

#### The formula

**Body:** Generator cost per kWh equals diesel price divided by kWh per litre, plus maintenance per kWh. Blended cost is the weighted average of grid and generator cost using the grid share. Monthly bill equals consumption times blended cost. Diesel used equals generated kWh divided by kWh per litre.

#### Reading the result

**Body:** With the defaults, a generated kWh costs several times a grid kWh, so a few extra hours of grid supply cut the bill sharply. Use the premium line to estimate the value of a grid improvement or an alternative source. Efficiency matters: a set running at light load can fall well below 3 kWh per litre.

#### Common mistakes

**Body:** Plants often measure diesel cost from deliveries without accounting for stock changes, or ignore operator and servicing cost. Meter the generator output, not just fuel. In your ERP, post fuel and power costs to a cost centre so utilities per unit produced can be tracked monthly.

**Cta:** If you want energy cost per unit produced inside your ERP reports, we can build a read-only dashboard using meter and fuel data.

**Faq:**

#### What is a realistic kWh per litre?

**Answer:** A well-loaded modern diesel set typically produces about 3 to 3.8 kWh per litre. At low load the figure drops, sometimes below 2.5, so use a measured value from your own fuel log and kWh meter.

#### Does the grid tariff include fixed charges?

**Answer:** The tool takes one rate per kWh. If your bill has fixed charges, divide the total monthly bill by the kWh used and enter that effective rate for a fair comparison.

#### Can I use it for gas generators?

**Answer:** Yes. Replace diesel price with the gas price per unit and kWh per litre with the equivalent kWh per unit of gas. Keep the maintenance cost per kWh to match your supplier terms.

#### Why is the premium shown as a multiple?

**Answer:** A multiple is easy to communicate to management and shows how sensitive cost is to hours on grid. A figure above 3 usually means that self-generation is a major lever for margin.

## Search terms

diesel generator cost per kwh, generator vs grid cost nigeria, factory electricity cost nigeria, diesel price impact manufacturing, blended electricity cost calculator, band a tariff generator cost, cost of self generation nigeria

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