Development of multicriteria models to classify energy efficiency alternatives

Luís Pires Neves, Carlos Henggeler Antunes, Luís Cândido Dias, and António Gomes Martins, University of Coimbra and INESC Coimbra

Keywords

Energy Efficiency, Multicriteria Decision Support, Market Transformation

Abstract

This paper aims at describing a novel constructive approach to develop decision support models to classify energy efficiency initiatives, including traditional Demand-Side Management and Market Transformation initiatives, overcoming the limitations and drawbacks of Cost-Benefit Analysis. A multicriteria approach based on the ELECTRE-TRI method is used, focusing on four perspectives: - an independent Agency with the aim of promoting energy efficiency; - Distribution-only utilities under a regulated framework; - the Regulator; - Supply companies in a competitive liberalized market.

These perspectives were chosen after a system analysis of the decision situation regarding the implementation of energy efficiency initiatives, looking for the main roles and power relations, with the purpose of structuring the decision problem by identifying the actors, the decision makers, the decision paradigm, and the relevant criteria.

The multicriteria models developed allow considering different kinds of impacts, but avoiding difficult measurements and unit conversions due to the nature of the multicriteria method chosen. The decision is then based on all the significant effects of the initiative, both positive and negative ones, including ancillary effects often forgotten in cost-benefit analysis. The ELECTRE-TRI, as most multicriteria methods, provides to the Decision Maker the ability of controlling the relevance each impact can have on the final decision. 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.