Abstract
This paper explores the economic prospects for investing in the renewable energy (RE) potentials available to Nigeria, from resource availability to fiscal metrics and policy provisions. With the aid of a simplified Levelised Cost of Electricity (sLCOE) method, unit costs of electricity were simulated up to 2040 and used to derive Net Present Values (NPV), Internal Rate of Returns (IRR) and Return on Investments (ROI) for available RE resource potentials. The outcomes indicate that for a 1-gigawatt (GW) power plant capacity, the cheapest source of RE and grid-level electricity, would come from Large Hydroelectric Power (LHP) at US$28.9 MWh <sup xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">−1</sup> and a 12-year payback period on investment.
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