256
C. N. Nwedu
those granted in the auction.
114 Furthermore, it reduces problem associated with information unevenness when remuneration levels are being
set and are especially appropriate for the efficiency of allocation, cost
control, expansion and technology mix.
115
The working condition of auction allows project developers to apply
only when a call is made, as opposed to FITs in which application can
be made anytime given its long-term open window.
116 The efficiency
level of the auction makes it the best alternative for the promotion of
RES-E,
117 a feature that has led to its massive adoption in over 67 countries globally.
118 Given its convenience in developing countries, especially
with regard to budget constraint,
119 auction may prove to be useful in
overcoming constraints to RES-E development in Nigeria, in addition
to FITs and FIPs. The desirability of the auction, in particular, may,
however, depend on specific renewable energy technologies, say photovoltaic due to its attractive features, as opposed biomass, and is likely
to appeal to potential investors and decision-makers. But its success
may depend on the design elements and supports offered to it by other
policies.
120
The use of tax incentives could be extremely useful in driving renewable energy investments in Nigeria. Thus, certain renewables can receive
tax grandfathering, or investors granted tax holiday. The USA has typically used tax incentives to support investments in renewables and boost
returns.
121 There is no doubt that tax incentive tool could be attractive for renewable energy projects, especially for the development of
off-grid electricity in many remote parts of the country, where different
renewables are scattered.
114 Ibid.
115 Marie-Christin Haufe and Karl-Martin Ehrhart, ‘Assessment of Auction Types Suitable for
RES-E’ (2016) AURES Report D3.1
116 Lucas, del Rio and Sokona (n 86).
117 Ibid.
118 IRENA, Renewable Energy Auctions: Analysing 2016 (Abu Dhabi: IRENA, 2017).
119 S Stratt and others, ‘From Growth to Green Investment Diagnostics’ (2016) IDS
Working Paper 472, https://www.ids.ac.uk/publications/from-growth-to-green-investment-dia
gnostics/ accessed 30 April 2020.
120 Lucas, del Rio and Sokona (n 86).
121 Pueyo and others (n 87).
C. N. Nwedu
those granted in the auction.
114 Furthermore, it reduces problem associated with information unevenness when remuneration levels are being
set and are especially appropriate for the efficiency of allocation, cost
control, expansion and technology mix.
115
The working condition of auction allows project developers to apply
only when a call is made, as opposed to FITs in which application can
be made anytime given its long-term open window.
116 The efficiency
level of the auction makes it the best alternative for the promotion of
RES-E,
117 a feature that has led to its massive adoption in over 67 countries globally.
118 Given its convenience in developing countries, especially
with regard to budget constraint,
119 auction may prove to be useful in
overcoming constraints to RES-E development in Nigeria, in addition
to FITs and FIPs. The desirability of the auction, in particular, may,
however, depend on specific renewable energy technologies, say photovoltaic due to its attractive features, as opposed biomass, and is likely
to appeal to potential investors and decision-makers. But its success
may depend on the design elements and supports offered to it by other
policies.
120
The use of tax incentives could be extremely useful in driving renewable energy investments in Nigeria. Thus, certain renewables can receive
tax grandfathering, or investors granted tax holiday. The USA has typically used tax incentives to support investments in renewables and boost
returns.
121 There is no doubt that tax incentive tool could be attractive for renewable energy projects, especially for the development of
off-grid electricity in many remote parts of the country, where different
renewables are scattered.
114 Ibid.
115 Marie-Christin Haufe and Karl-Martin Ehrhart, ‘Assessment of Auction Types Suitable for
RES-E’ (2016) AURES Report D3.1
116 Lucas, del Rio and Sokona (n 86).
117 Ibid.
118 IRENA, Renewable Energy Auctions: Analysing 2016 (Abu Dhabi: IRENA, 2017).
119 S Stratt and others, ‘From Growth to Green Investment Diagnostics’ (2016) IDS
Working Paper 472, https://www.ids.ac.uk/publications/from-growth-to-green-investment-dia
gnostics/ accessed 30 April 2020.
120 Lucas, del Rio and Sokona (n 86).
121 Pueyo and others (n 87).