Global Journal of Research in Economics, Management and Social Sciences
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Vol. 1 No. 1 (2026): October
Articles

Analysis of Investment Factors for The Replacement of Coal-Fired Power Plants Using Fuzzy AHP

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  • Stephen Edem,
  • Emeka Obi

Published 2026-10-07

Keywords

  • Array

Abstract

Nigeria has set ambitious targets to improve energy sustainability and reduce carbon emissions in the coming decades. Achieving these targets requires a careful transition from coal-fired power plants, which have historically dominated electricity generation in certain regions, to cleaner energy sources. This study investigates the key factors influencing investment decision-making in the replacement of coal-fired power plants. Using a comprehensive PESTEL framework covering Political, Economic, Social, Technological, Environmental, and Legal factors this research identifies the most critical considerations for corporate and governmental decision-makers. The fuzzy Analytical Hierarchy Process (AHP) was employed to analyze expert judgments, incorporating the perspectives of 10 Nigerian and international energy sector professionals with direct experience in coal-fired power plant investment projects. The results reveal that economic and legal feasibility are the most influential factors guiding investment decisions. In terms of technical alternatives, gas-fired power plants emerged as the most practical and economically viable solution for replacing coal-fired units, although geothermal power generation remains a potential option despite governmental control over resources limiting private sector access. This research provides critical insights and recommendations for policymakers and private investors seeking to reduce Nigeria’s coal dependency, support low-carbon transition, and accelerate decarbonization in alignment with national sustainability targets.

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