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Selecting the Optimal Micro-Grid Planning Program Using a Novel Multi-Criteria Decision Making Model Based on Grey Cumulative Prospect Theory

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  • Haoran Zhao

    (School of Economics and Management, North China Electric Power University, Beijing 102206, China
    Beijing Key Laboratory of New Energy and Low-Carbon Development, North China Electric Power University, Changping, Beijing 102206, China)

  • Sen Guo

    (School of Economics and Management, North China Electric Power University, Beijing 102206, China
    Beijing Key Laboratory of New Energy and Low-Carbon Development, North China Electric Power University, Changping, Beijing 102206, China)

  • Huiru Zhao

    (School of Economics and Management, North China Electric Power University, Beijing 102206, China
    Beijing Key Laboratory of New Energy and Low-Carbon Development, North China Electric Power University, Changping, Beijing 102206, China)

Abstract

As useful supplements and effective support for large-scale electric power networks, micro-grid systems are the development tendency of future electric power systems. The planning performance of a micro-grid not only affects its security, reliability and economy, but also has a profound influence on the stable operation of large-scale electric power networks with the increasing penetration of micro-grids. Hence, studies related to micro-grid planning program evaluation are of great significance. This paper established a novel multi-criteria decision making (MCDM) model combining the best-worst method (BWM), the entropy weighting approach, and grey cumulative prospect theory for optimum selection of micro-grid planning programs. Firstly, an evaluation index system containing 18 sub-criteria was built from the perspectives of economy, electricity supply reliability and environmental protection. Secondly, the weights of sub-criteria were calculated integrating the subjective weights judged by the BWM and the objective weights computed by the entropy weighting method. Then, the cumulative prospect theory (CPT) combined with grey theory was employed to select the optimal micro-grid planning program. The empirical result indicates that the program with 100 kWp photovoltaic power generation unit, 200 kW wind power generation unit and 600 kWh NaS battery energy storage system is the optimal micro-grid planning program. To verify the robustness of obtained result, a sensitivity analysis related to values change of parameters under different risk preferences was conducted, and the result indicates that the selected optimal micro-grid planning program will not be influenced by various risk preferences of decision makers (DMs) and investors. The novel MCDM proposed in this paper is applicable and feasible in the micro-grid planning programs evaluation and selection.

Suggested Citation

  • Haoran Zhao & Sen Guo & Huiru Zhao, 2018. "Selecting the Optimal Micro-Grid Planning Program Using a Novel Multi-Criteria Decision Making Model Based on Grey Cumulative Prospect Theory," Energies, MDPI, vol. 11(7), pages 1-24, July.
    • Handle: RePEc:gam:jeners:v:11:y:2018:i:7:p:1840-:d:157834
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    5. Mi, Xiaomei & Tang, Ming & Liao, Huchang & Shen, Wenjing & Lev, Benjamin, 2019. "The state-of-the-art survey on integrations and applications of the best worst method in decision making: Why, what, what for and what's next?," Omega, Elsevier, vol. 87(C), pages 205-225.
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