EJERS, European Journal of Engineering Research and Science Vol. 4, No. 1, January 2019 DOI: http://dx.doi.org/10.24018/ejers.2019.4.1.1096 75 Abstract—The aim of this research is to compare the economic benefits of various types of power generating technologies such as gas turbines, wind turbines and solar energy that is suitable for power producing plants in Nigeria. The study conducts economic assessment by developing a data- intensive spread-sheet-based model. The model estimates the unit cost of electricity generated by a 10MW capacity solar photovoltaic system (PV), Wind turbine and Gas Turbine. Comparison based on investment cost and capacity charge indicated that the levelized cost of electricity (LCOEsolar) by solar PV was found to be $0.05188 per kWh with a net present value of (-$3,520,003), (LCOEwind), by Wind turbine was found to be $0.0732per kWh or with a net present cost of (- $24,486,076), while (LCOEgas) by Gas turbine was found to be $0.07214 per kWh or with a net present value of ($11,813,136). Results obtained with reference to LCOE showed that solar PV has the lowest cost of power generation, followed by gas turbine, and then wind turbine. Consequently, comparison based on decision for economic and preferable energy to invest in as well as the annual return the investment is projected to generate indicated that the internal rate of return (IRR) for both solar PV and wind turbine was found to be negative with a simple payback period of 14 and 35 years respectively, while internal rate of return (IRR) for gas turbine was found to be 18.67% with 5 years’ payback period. Hence, result obtained with reference to IRR and SPBP showed that gas turbine is the most economic and preferable energy generating technology to invest in since it is projected to generate 18.67% annual return from the investment in a minimum of 5 years’ period as compared to solar PV and wind turbine. Index Terms—Gas Turbine; Wind Turbine; Solar PV; Cost per kWh. I. INTRODUCTION Electricity, which is accepted to mean the supply of electric power generally plays a vital role in the socio- economic development of a nation. The supply of electricity involves generation, transmission and distribution of the electric power to consumers. Electricity is one aspect of the utility sector that is very important and meaningful for the growth of every society. It promotes the economy and aids the well-being of individuals [1]. Electricity can be classified as the most important energy source but also the most momentary, a source that must be consumed immediately it is produced. This makes economics of electricity production modelling more complex when compared with the same task for other products. A future investment decision on electricity Published on January 25, 2019. Authors are with the Mechanical Engineering Department, Rivers State University, Port Harcourt, Rivers State, Nigeria. (e-mail: Christopher.udoka1@gmail.com) production will need a well detailed accurate modelling because much emphasise will based on the modelling outcome. In a developing country like Nigeria, high cost of exploration techniques and Naira devaluation have made power generation unattractive [2]. In the power industry, two major criteria are used for cost comparison. They are: capital cost and the levelized cost of electricity. The latter is a lifecycle cost analysis of a power plant that uses assumptions about the future value of the currency to convert all future costs and revenues into current prices. The levelized cost is mostly used in the power sector but has its own disadvantages, particularly in its ability to handle risk. Even so these two measures, together, are the first consulted when power sector investment and planning decisions are to be made. The former involves the turnkey project cost which includes civil/structural works, balance of plant that includes both the mechanical and electrical installations. The cost of a unit of electricity depends on a large number of different factors. The key factor among these is the cost of the power plant used in production of power. For there to be a significant comparison between different power generating technologies, an economic analysis will focus on unconstrained open market costs at every period of the analysis The aim of this project is to compare the economic benefits of various types of generating technologies such as gas turbines, wind turbines and solar energy that are suitable for power producing plants in Nigeria. To achieve the aim of this research, the objectives include the following: i. To evaluate the cost of generating 10MW using the various types of generating technologies for Independent power producers. ii. To determine the cost of fuel, maintenance and lifecycle of each of the fore mentioned generating technologies. iii. To determine the economic viability for each renewable technology as to enable the Independent Power Producers (IPP) breakeven. This research work will be carried out in Nigeria for comparative analysis of techno-economic viability of independent power producing system. The project concerned with the best cost-effective power plant to be run is limited to wind turbine, solar PV and gas turbine technologies. Techno-economic evaluation and the feasibility study on standalone hybrid solar-wind system with battery energy for a remote island was carried out by Ma (2014). In 2009, the data for the wind and solar radiation was obtained and recorded. The effects and economic performance of the Comparative Analysis on Economic Viability of Independent Power Producing System in Nigeria Udoka Christopher, Barinyima Nkoi and Felix E. Oparadike