Economic Feasibility Analysis for Renewable Energy Project Using an Integrated TFN–AHP–DEA Approach on the Basis of Consumer Utility

Abstract

A renewable energy (RE) project has been brought into focus in recent years. Although there is quite a lot of research to assist investors in assessing the economic feasibility of the project, because of the lack of consideration of consumer utility, the existing approaches may still cause a biased result. In order to promote further development, this study focuses on the economic feasibility analysis of the RE project on the basis of consumer utility in the whole life cycle. Therefore, an integrated approach is proposed, which consists of triangular fuzzy numbers (TFNs), an analytic hierarchy process (AHP) and data envelopment analysis (DEA). The first step is to determine the comprehensive cost index weights of DEA by TFN-AHP. Secondly, to solve the problem, the first DEA model, which is proposed by A. Charnes, W. W. Cooper and E. Rhodes (C 2 R), is established to calculate the DEA effectiveness. Then, the third task involves designing a computer-based intelligent interface (CBII) to simplify realistic application and ensure performance efficiency. Finally, a solar water heater case study is demonstrated to validate the effectiveness of the entire method's system. The study shows that this could make investors' lives easier by using the CBII scientifically, reasonably and conveniently. Moreover, the research results could be easily extended to more complex real-world applications.

Intelligent Classification Method for Grid-Monitoring Alarm Messages Based on Information Theory

“…In order to combine the features of various entropies and provide supervisors with an ultimate overall index, we introduced the AHP to comprehensively assess the alarm message value obtained through multi-dimensional calculation. The AHP is an analytical technique which is used to decompose the target into a hierarchy of indices and then evaluate the indices to obtain a comprehensive evaluation [34]. The AHP provides a comprehensive framework for various indices of monitoring alarm messages, which obtains more rational and effective results.…”

Data Envelopment Analysis in Energy and Environmental Economics: An Overview of the State-of-the-Art and Recent Development Trends

“…Wu et al [67] used a two-stage network DEA to evaluate emission reduction efficiency and energy saving in the 30 municipalities, provinces, and autonomous of China's regional. Gan et al [114] integrated the triangular fuzzy numbers (TFNs), AHP and DEA in a renewable energy project. He et al [115] integrated the DEA, fuzzy artificial neural network (FANN) and rough set theory (RS) to assess industrial energy efficiency in the provincial industry sectors.…”

Solar Panel Supplier Selection for the Photovoltaic System Design by Using Fuzzy Multi-Criteria Decision Making (MCDM) Approaches

“…A hybrid FAHP-AR-DEA to assess the efficiencies of PV solar plant site candidates by Amy H. I. Lee et al [23]. A integrated TFN-AHP-DEA approaches for renewable energy projects analyzed economic feasibility by Gan et al [24]. A supplier performance evaluation model based on AHP and DEA by He-Yau-Kang [25].…”