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A multi-criteria decision approach to sorting actions for promoting energy efficiency

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  • Neves, Lui­s Pires
  • Martins, António Gomes
  • Antunes, Carlos Henggeler
  • Dias, Lui­s Cândido

Abstract

This paper proposes a multi-criteria decision approach for sorting energy-efficiency initiatives, promoted by electric utilities, with or without public funds authorized by a regulator, or promoted by an independent energy agency, overcoming the limitations and drawbacks of cost-benefit analysis. The proposed approach is based on the ELECTRE-TRI multi-criteria method and allows the consideration of different kinds of impacts, although avoiding difficult measurements and unit conversions. The decision is based on all the significant effects of the initiative, both positive and negative, including ancillary effects often forgotten in cost-benefit analysis. The ELECTRE-TRI, as most multi-criteria methods, provides to the decision maker the ability of controlling the relevance each impact can have on the final decision in a transparent way. The decision support process encompasses a robustness analysis, which, together with a good documentation of the parameters supplied into the model, should support sound decisions. The models were tested with a set of real-world initiatives and compared with possible decisions based on cost-benefit analysis.

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  • Neves, Lui­s Pires & Martins, António Gomes & Antunes, Carlos Henggeler & Dias, Lui­s Cândido, 2008. "A multi-criteria decision approach to sorting actions for promoting energy efficiency," Energy Policy, Elsevier, vol. 36(7), pages 2351-2363, July.
    • Handle: RePEc:eee:enepol:v:36:y:2008:i:7:p:2351-2363
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    4. Neves, L.P. & Dias, L.C. & Antunes, C.H. & Martins, A.G., 2009. "Structuring an MCDA model using SSM: A case study in energy efficiency," European Journal of Operational Research, Elsevier, vol. 199(3), pages 834-845, December.
    5. Mahmoud, Mohamed A. & Alajmi, Ali F., 2010. "Quantitative assessment of energy conservation due to public awareness campaigns using neural networks," Applied Energy, Elsevier, vol. 87(1), pages 220-228, January.
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    7. Buchmayr, A. & Taelman, S.E. & Thomassen, G. & Verhofstadt, E. & Van Ootegem, L. & Dewulf, J., 2023. "A distance-to-sustainability-target approach for indicator aggregation and its application for the comparison of wind energy alternatives," Renewable and Sustainable Energy Reviews, Elsevier, vol. 185(C).
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    9. Dias, Luis C. & Antunes, Carlos Henggeler & Dantas, Guilherme & de Castro, Nivalde & Zamboni, Lucca, 2018. "A multi-criteria approach to sort and rank policies based on Delphi qualitative assessments and ELECTRE TRI: The case of smart grids in Brazil," Omega, Elsevier, vol. 76(C), pages 100-111.
    10. Strantzali, Eleni & Aravossis, Konstantinos, 2016. "Decision making in renewable energy investments: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 55(C), pages 885-898.
    11. Wang, Jiang-Jiang & Jing, You-Yin & Zhang, Chun-Fa & Zhao, Jun-Hong, 2009. "Review on multi-criteria decision analysis aid in sustainable energy decision-making," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(9), pages 2263-2278, December.
    12. Doukas, Haris, 2013. "Modelling of linguistic variables in multicriteria energy policy support," European Journal of Operational Research, Elsevier, vol. 227(2), pages 227-238.
    13. Sánchez-Lozano, Juan M. & Henggeler Antunes, Carlos & García-Cascales, M. Socorro & Dias, Luis C., 2014. "GIS-based photovoltaic solar farms site selection using ELECTRE-TRI: Evaluating the case for Torre Pacheco, Murcia, Southeast of Spain," Renewable Energy, Elsevier, vol. 66(C), pages 478-494.
    14. Supriyasilp, Thanaporn & Pongput, Kobkiat & Boonyasirikul, Thana, 2009. "Hydropower development priority using MCDM method," Energy Policy, Elsevier, vol. 37(5), pages 1866-1875, May.
    15. Dongxiao Niu & Hao Zhen & Min Yu & Keke Wang & Lijie Sun & Xiaomin Xu, 2020. "Prioritization of Renewable Energy Alternatives for China by Using a Hybrid FMCDM Methodology with Uncertain Information," Sustainability, MDPI, vol. 12(11), pages 1-26, June.
    16. Wu, Yi-Hua & Liu, Chia-Hao & Hung, Ming-Lung & Liu, Tzu-Yar & Masui, Toshihiko, 2019. "Sectoral energy efficiency improvements in Taiwan: Evaluations using a hybrid of top-down and bottom-up models," Energy Policy, Elsevier, vol. 132(C), pages 1241-1255.
    17. Francineide Morais Bezerra & Paulo Melo & João Paulo Costa, 2017. "Reaching Consensus with VICA-ELECTRE TRI: A Case Study," Group Decision and Negotiation, Springer, vol. 26(6), pages 1145-1171, November.
    18. Liu, Jiapeng & Liao, Xiuwu & Yang, Jian-bo, 2015. "A group decision-making approach based on evidential reasoning for multiple criteria sorting problem with uncertainty," European Journal of Operational Research, Elsevier, vol. 246(3), pages 858-873.
    19. Fu-Ling Cai & Xiuwu Liao & Kan-Liang Wang, 2012. "An interactive sorting approach based on the assignment examples of multiple decision makers with different priorities," Annals of Operations Research, Springer, vol. 197(1), pages 87-108, August.

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