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Cost–benefit analysis of distributed energy systems considering multi-benefits and multi-stakeholders

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  • Ren, Hongbo
  • Wu, Qiong
  • Zhu, Qunzhi
  • Gao, Weijun

Abstract

Total costs and benefits examination of a distributed energy system (DES) is essential to estimate whether a project is economically beneficial or not. In addition, because a DES usually involves various stakeholders, to maintain the cooperative relationship of them, a cost-benefit analysis (CBA) from each stakeholder’s perspective is also of vital importance. In this study, a Mixed Integer Nonlinear Programming (MINLP) model is proposed to deduce the optimal energy supply strategy of a DES. To execute a comprehensive assessment, besides the direct economic benefits, various non-energy ones are also paid enough attention to. Moreover, to implement the CBA, multi-benefits especially the non-energy ones are quantified and monetized using specific transferring methods to exploit their effects in monetary terms. As a result, a systematic CBA framework is developed considering both multi-benefits and multi-stakeholders for a DES. According to the simulation results of a case study, the exploitation of various non-energy benefits is significant which may entirely reflect the social values of a DES. Also, the CBA from each stakeholder’s viewpoint may increase their motivation to join the benefit-sharing union effectively. Furthermore, second benefit trade-off may be required to ensure the satisfied profit return for each stakeholder.

Suggested Citation

  • Ren, Hongbo & Wu, Qiong & Zhu, Qunzhi & Gao, Weijun, 2019. "Cost–benefit analysis of distributed energy systems considering multi-benefits and multi-stakeholders," Energy, Elsevier, vol. 189(C).
    • Handle: RePEc:eee:energy:v:189:y:2019:i:c:s0360544219320778
    DOI: 10.1016/j.energy.2019.116382
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    2. Akintunde S. Alayande & O. D. Owoicho & Tobiloba Emmanuel Somefun & Joseph Olowoleni & Ignatius K. Okakwu & Ademola Abdulkareem, 2021. "Power Quality Considerations for Distributed Generation Integration in the Nigerian Distribution Network Using NEPLAN Software," International Journal of Energy Economics and Policy, Econjournals, vol. 11(5), pages 331-342.
    3. Trivedi, Anupam & Chong Aih, Hau & Srinivasan, Dipti, 2020. "A stochastic cost–benefit analysis framework for allocating energy storage system in distribution network for load leveling," Applied Energy, Elsevier, vol. 280(C).

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