Novel Multi-Criteria Decision Analysis Based on Performance Indicators for Urban Energy System Planning

Urban energy systems planning presents significant challenges, requiring the integration of multiple objectives such as economic feasibility, technical reliability, and environmental sustainability. Although previous studies have focused on optimizing renewable energy systems, many lack comprehensive decision frameworks that address the complex trade-offs between these objectives in urban settings. Addressing these challenges, this study introduces a novel Multi-Criteria Decision Analysis (MCDA) framework tailored for the evaluation and prioritization of energy scenarios in urban contexts, with a specific application to the city of Bozen-Bolzano. The proposed framework integrates various performance indicators to provide a comprehensive assessment tool, enabling urban planners to make informed decisions that balance different strategic priorities. At the core of this framework is the Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS), which is employed to systematically rank energy scenarios based on their proximity to an ideal solution. This method allows for a clear, quantifiable comparison of diverse energy strategies, facilitating the identification of scenarios that best align with the city’s overall objectives. The flexibility of the MCDA framework, particularly through the adjustable criteria weights in TOPSIS, allows it to accommodate the shifting priorities of urban planners, whether they emphasize economic, environmental, or technical outcomes. The study’s findings underscore the importance of a holistic approach to energy planning, where trade-offs are inevitable but can be managed effectively through a structured decision-making process. Finally, the study addresses key gaps in the literature by providing a flexible and adaptable tool that can be replicated in different urban contexts to support the transition toward 100% renewable energy systems.