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

Author

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  • Lu Gan

    (College of Architecture and Urban-Rural Planning, Sichuan Agricultural University, Dujiangyan 611830, China)

  • Dirong Xu

    (College of Architecture and Urban-Rural Planning, Sichuan Agricultural University, Dujiangyan 611830, China)

  • Lin Hu

    (College of Architecture and Urban-Rural Planning, Sichuan Agricultural University, Dujiangyan 611830, China)

  • Lei Wang

    (College of Architecture and Urban-Rural Planning, Sichuan Agricultural University, Dujiangyan 611830, China)

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.

Suggested Citation

  • Lu Gan & Dirong Xu & Lin Hu & Lei Wang, 2017. "Economic Feasibility Analysis for Renewable Energy Project Using an Integrated TFN–AHP–DEA Approach on the Basis of Consumer Utility," Energies, MDPI, vol. 10(12), pages 1-21, December.
    • Handle: RePEc:gam:jeners:v:10:y:2017:i:12:p:2089-:d:122264
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    2. Abbas Mardani & Dalia Streimikiene & Tomas Balezentis & Muhamad Zameri Mat Saman & Khalil Md Nor & Seyed Meysam Khoshnava, 2018. "Data Envelopment Analysis in Energy and Environmental Economics: An Overview of the State-of-the-Art and Recent Development Trends," Energies, MDPI, vol. 11(8), pages 1-21, August.
    3. Chia-Nan Wang & Van Thanh Nguyen & Hoang Tuyet Nhi Thai & Ngoc Nguyen Tran & Thi Lan Anh Tran, 2018. "Sustainable Supplier Selection Process in Edible Oil Production by a Hybrid Fuzzy Analytical Hierarchy Process and Green Data Envelopment Analysis for the SMEs Food Processing Industry," Mathematics, MDPI, vol. 6(12), pages 1-16, December.
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    6. Chia-Nan Wang & Van Thanh Nguyen & Hoang Tuyet Nhi Thai & Duy Hung Duong, 2018. "Multi-Criteria Decision Making (MCDM) Approaches for Solar Power Plant Location Selection in Viet Nam," Energies, MDPI, vol. 11(6), pages 1-27, June.

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