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Article history: One of the problems facing researchers in the application of renewable energy systems is that the
Received 9 December 2014 evaluation of the sustainability is extremely perplex. Decision making in energy projects requires con-
Received in revised form sideration of technical, economic, environmental and social impacts and is often complicated. This paper
9 July 2015
presents a review of the current state of the art in decision support methods applied to renewable and
Accepted 12 November 2015
sustainable energy throughout the literature in the field of energy planning. The selected papers were
classified by their year of publication, decision making technique, energy type, the criteria used, geo-
Keywords: graphic distribution and the application areas.
Renewable Energy Sources (RES) & 2015 Elsevier Ltd. All rights reserved.
Decision Support Systems (DSS)
Energy Planning
LCA
CBA
MCDA
Contents
1. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 885
1.1. A brief overview of the study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 886
2. Decision support methods applied to renewable energy sources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 886
2.1. Life Cycle Analysis-LCA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 886
2.2. Cost Benefit Analysis-CBA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 887
2.3. Multicriteria Decision Aid -MCDA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 887
2.3.1. Several MCDA methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 887
3. Classification of studies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 887
3.1. Year of publication. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 888
3.2. Distribution of applied methods in literature . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 888
3.3. Distribution of the analysed energy type in literature. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 889
3.4. Classification by application area . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 890
3.5. Evaluation criteria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 893
3.6. Geographic distribution of case studies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 894
4. Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 894
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 895
1. Introduction to supply power and heat to production systems. Until the out-
break of the energy crisis, meeting these needs was a routine
Energy is central to achieving the interrelated goals of modern problem whose solution was principally a matter of money and
societies: to meet human needs for heating, cooling, lighting, technology availability. At these times, per capita energy con-
mobility and for running a large diversity of appliances, as well as sumption was a safe index of a nation's prosperity, while energy
planning was aiming at supplying the energy required at the right
n
Corresponding author. time and in the least costly way [1]. The energy system has been
E-mail address: lenast@central.ntua.gr (E. Strantzali). the subject of substantial discussion over the course of the last 40
http://dx.doi.org/10.1016/j.rser.2015.11.021
1364-0321/& 2015 Elsevier Ltd. All rights reserved.
886 E. Strantzali, K. Aravossis / Renewable and Sustainable Energy Reviews 55 (2016) 885–898
years or so, but each time the discussion intensified, it was for a 1.1. A brief overview of the study
different reason. First, there was an oil crisis and everyone was
concerned about energy security, “peak oil” and high oil prices, The goal of this paper is to review the recent literature in order
later the focus shifted toward climate change, with the energy to investigate the trends in the assessment of RES investments.
system being the largest contributor of anthropogenic GHG The study is based on representative sample of a literature review
emissions. Various alternatives have been considered: renewable of energy planning papers and may concern researchers and
energy, so called carbon capture and storage, energy demand potential users of the examined methods. The current challenge
was to limit the number of papers for the analysis to a manageable
reduction. Experiments with reality are usually very costly and
size but still objectively represent the state of the applications. The
could lead to undesired consequences. It is for this reason that
reader has the opportunity to be informed throughout the years
mathematical models have been employed to help understand the
for the trends in methods and application areas. It is useful to
functioning of the energy system, make justified decisions about
understand the reasons of these trends, in order to improve the
its development and choosing the best technologies for combi-
effectiveness of applications in the future and for a candidate
nation in a particular region, or design a strategy for CO2 emissions project which type of approach might be suitable, and where
reduction of 80% over the course of the following 40 years [2]. similar applications might be found.
As mentioned in Huang et al. [3], decision analysis (DA) was In the sections that follow, we shall first refer to the most fre-
first applied to study problems in oil and gas exploration in the quently used decision support methods applied to renewable
1960s and its application was subsequently extended from energy problems. Then, we classify a total of 183 studies published
industry to the public sector. During the 1970s, energy planning from 1983–2014. We present the main features observed and
efforts were directed primarily towards energy models aimed at report on new findings.
exploring the energy-economy relationships established in the
energy sector. The main objectives followed were to accurately
estimate future energy demand. A single criteria approach aimed 2. Decision support methods applied to renewable energy
at identifying the most efficient supply options at a low cost was sources
popular [4,5]. In the 1980s, growing environmental awareness has
slightly modified the above decision framework [6]. The need to The most frequently used approaches to the modelling of the
incorporate environmental and social considerations in energy energy system have been: life cycle assessment (LCA), cost benefit
planning resulted in the increasing use of multicriteria approaches analysis (CBA) and multicriteria decision aid (MCDA) [2].
[7]. The 1991 study by Corner and Kirkwood [8] lists 86 DA studies
that appeared in operations research and related journals from 2.1. Life Cycle Analysis-LCA
1970 to 1989. They found that DA was very suitable to address
strategic or policy decisions full of uncertainties and multiple Life Cycle Analysis (LCA) is a process to analyse and assess the
conflicting criteria. In a more recent study, Keefer et al. [9] sur- environmental impacts of a product, process or activity over its
whole life cycle. LCA identifies and quantifies energy and materials
veyed 85 articles appearing in 1990–2001 and found that the use
used and wastes released to the environment and assesses the
of DA for strategic and tactical decisions was growing [10].
impact of those inputs and outputs searching for environmental
Given that the energy sector and energy planning in particular
improvements. LCA considers the entire life cycle of the product:
affects the interests and resources of multiple actors, it is socially
extracting and processing raw materials, manufacturing, trans-
not acceptable to suggest (or even implement) a policy alternative
portation and distribution, use, re-use, maintenance, recycling and
without taking into account the interests and preferences of the
final disposal [16].
(multiple) affected factors [11]. Different and numerous groups of An LCA study involves data collection and calculation to
actors get involved in the process, each group brings along dif- quantify relevant inputs and outputs or the environmental load of
ferent criteria and point of view, which must be resolved within a a product system [17]. Using a LCA methodology, environmental
framework of understanding and mutual compromise (conces- performance indicators, including energy intensity, energy pay-
sions) [12]. The actors include those groups of individuals, insti- back time (EPBT), can be determined for energy technologies.
tutions and administration authorities such as local authorities Biomass, photovoltaic (PV), and wind energy are the Renewable
and communities, potential investors, academic institutions, Energy Technologies (RETs) for which most of the LCA work has
environmental groups, governments that through their priorities been carried out in order to assess their environmental perfor-
and evaluation systems, have interests at stake and directly or mance for electricity generation. LCA analysis is conducted from
indirectly influence the decision-making process [13]. different perspectives for electricity generation from RETs [18]:
Sustainable development means the satisfaction of present
needs without compromising the ability of future generations to - LCA for determination of the environmental performance: A
meet their own needs [14]. A sustainable energy sector has a number of studies have been carried out to determine the
balance of energy production and consumption and has, no, or lifecycle environmental performance of RETs.
- LCA for analyzing the factors of the environmental perfor-
minimal, negative impact on the environment (within the envir-
mance. The lifetime, power ratings, load factor, type and
onmental tolerance limits), but gives the opportunity to a country
maturity of technology, and country of manufacture influence
to employ its social and economic activities [15].
the energy intensity of energy technologies.
The exploitation of renewable energy sources (RES) has gained
- Scenario analysis through LCA. There are some LCA studies
a vast interest during the last years. Renewable energy (RE) is the that not only assesse the environmental performance of RETs
energy generated from natural resources such as sunlight, wind, but also include alternative energy efficiency scenarios into
rain, biomass, tides and geothermal heat. RES have to overcome the lifecycle boundary in order to reduce the lifecycle envir-
environmental, socio-economic, technical and institutional bar- onmental burden.
riers. The complex issues of renewables render the choice between - LCA for comparative analysis. LCAs of different types of RETs
different exploitation proposals a complicated task. have been carried out in order to compare their performances.
E. Strantzali, K. Aravossis / Renewable and Sustainable Energy Reviews 55 (2016) 885–898 887
2.2. Cost Benefit Analysis-CBA alternative should have the shortest distance from the negative
ideal solution in geometrical sense. The method assumes that each
Cost–Benefit Analysis (CBA) offers an alternative way of syn- attribute has a monotonically increasing or decreasing utility. This
thesizing performances in different evaluation aspects by trans- makes it easy to locate the ideal and negative ideal solutions. Thus,
lating all impact categories into monetary terms. This approach the preference order of alternatives is yielded through comparing
has the advantage of providing results on a scale compatible with the Euclidean distances [7]. The ideal alternative has the best level
the market mechanism and more comprehensible to decision for all criteria, whereas the negative ideal is the one with all the
makers. worst criteria values.
Cost–benefit analysis involves the comparison of total costs and
benefits associated with a project or policy, namely those reflected 2.3.1.3. Multi-attribute Utility Theory (MAUT). Multi-attribute Uti-
in market prices (private cost or benefit) and those experienced by lity Theory (MAUT) takes into consideration the decision maker's
the external economic and natural environment without directly preferences in the form of the utility function which is defined
influencing the market mechanism (external cost or benefit). In over a set of attributes. The utility value can be determined by
this sense, CBA constitutes an extension of the conventional determination of single attribute utility functions followed by
financial analysis that is capable of removing market distortions verification of preferential and utility independent conditions and
and indicating those actions with the lowest social cost or the derivation of multi-attribute utility functions [7].
highest net social benefit.
However, it is very often difficult to express all performances— 2.3.1.4. MCDA combined fuzzy methodology. The classic MCDA
including impacts on nontraded goods—in monetary terms. Thus, methods generally assume that all criteria and their respective
the analysis is often restricted to only monetized aspects such as weights are expressed in crisp values, and thus, that the rating and
capital, operation and maintenance costs [19]. In CBA, monetary the ranking of the alternatives can be carried out without any
values play the role of weights in MCDA [20]. problem. Due to the availability and uncertainty of information as
well as the vagueness of human feeling and recognition, it is
2.3. Multicriteria Decision Aid -MCDA relatively difficult to provide exact numerical values for the cri-
teria, make an exact evaluation and convey the feeling and
Multi-Criteria Decision Making (MCDM) techniques are popular
recognition of objects for decision makers. The combination of
in sustainable energy management. The techniques provide solu-
MCDA methods and fuzzy set theory has been applied in many
tions to the problems involving conflicting and multiple objectives.
systems in addition to energy systems.
Several methods based on weighted averages, priority setting,
In this context, a realistic approach is the use of linguistic
outranking, fuzzy principles and their combinations are employed
variables in the process of the different methods, which are
for energy planning decisions.
composed of a finite set of linguistic terms and their meaning is a
The objectives are usually conflicting and therefore, the solu-
fuzzy subset in a universe of discourse.
tion is highly dependent on the preferences of the decision-maker
and must be a compromise. In most of the cases, different groups
2.3.1.5. The outranking methods: ELECTRE and PROMETHEE.
of decision-makers are involved in the process. Each group brings
Compared to the other multicriteria evaluation methods, the
along different criteria and points of view, which must be resolved
outranking methods have the characteristic of allowing incom-
within a framework of understanding and mutual compromise [3].
parability between alternatives.
Applications of MCDM include areas such as energy policy
The Elimination and choice translating reality (ELECTRE) con-
analysis, electric power planning, technology choice and project
centrates the analysis on the dominance relations among the
appraisal, and environmental impact analysis, [10].
alternatives. The basic concept is how to deal with outranking
relation by using pair-wise comparisons among alternatives under
2.3.1. Several MCDA methods
each criteria separately.
2.3.1.1. Analytic Hierarchy Process (AHP) / Analytic Network Process
The Preference ranking organization method for enrichment
(ANP). The Analytic Hierarchy Process (AHP) and its generalization
evaluation (PROMETHEE) uses the outranking principle to rank the
to dependence and feedback, the Analytic Network Process (ANP),
alternatives, combined with the ease of use and decreased com-
are theories of relative measurement of intangible criteria. With
plexity. Like to ELECTRE method, it also performs a pair-wise
this approach to relative measurement, a scale of priorities is
comparison of alternatives in order to rank them with respect to a
derived from pairwise comparison measurements only after the
number of criteria. However, ELECTRE method only pay attention
elements to be measured are known. In the AHP paired compar-
to the preference and ignore the difference level between alter-
isons are made with judgments using numerical values taken from
natives when determining the ranking order. PROMETHEE intro-
the AHP absolute fundamental scale of 1–9. A scale of relative
duces the preference functions to measure the difference level
values is derived from all these paired comparisons and it also
between alternatives when determining the ranking order.
belongs to an absolute scale that is invariant under the identity
Nevertheless, it is useful to compare the results from each
transformation like the system of real numbers. AHP is widely
method and in the case of coinciding rankings, the reliability of the
used for practical MCDA method in various domains, in addition to
assessment procedure is considerably strengthened.
energy systems. The ANP is a generalization of the Analytic Hier-
archy Process. The basic structures are networks. Priorities are
established in the same way they are in the AHP using pairwise
comparisons and judgments. The AHP/ANP are useful for making 3. Classification of studies
multicriteria decisions involving benefits, opportunities, costs
and risks. The 183 studies ([2–3,7,10–13,15,18,23,26–199]) are collected
and classified according to the following categories (Fig. 1):
2.3.1.2. The technique for order preference by similarity to ideal
solutions (TOPSIS). This method is developed as an alternative to Year of publication
ELECTRE. The basic concept of this method is that the selected Method used
888 E. Strantzali, K. Aravossis / Renewable and Sustainable Energy Reviews 55 (2016) 885–898
Table 3
Classification of the surveyed studies by year and by decision making technique. Studies are denoted by reference numbers.
Years LCA CBA AHP/ANP MAUT/ PROMETHEE ELECTRE TOPSIS MULTIPLE REVIEW FUZZY OTHER
MAVT
1995 144 3
1996 77 81
1997 29, 46 54 168 88
1998 142 139 139
1999 93, 98 148
2000 39 133 72, 133 97
2001 48, 49 87 82 85
2002 34, 44 83, 95 83 83 89 159, 161
2003 32 26 84 12 80, 137, 172 137 76
2004 37, 42 96, 140 73, 90 7 94, 143, 171
2005 43 124, 134 184 78, 152
2006 28, 35, 53 175 10
36
2007 31, 33, 27, 50, 68 27, 158 177 27, 149, 177 65 178 56, 126, 145, 149, 157,
40 52, 149 164, 176
2008 129 117, 147 129, 173 129 18, 197 147 141, 170
2009 183 47, 51 64, 67, 116, 11, 160, 196 150, 160, 196 15, 30, 198 67 146, 196
163, 165
2010 71, 75, 132, 169 169 138 75, 169 41, 55 71, 132, 75, 66, 131, 155, 166
136, 169 136, 138
2011 154, 162 57 156, 192 74 154 23, 194 127, 154, 167
2012 45, 185 135 63, 135, 181, 181, 182, 185 2, 13, 61 135 59, 60, 99, 128, 130,
182 153
2013 103 70, 103, 180, 70, 187 70, 103, 187 188 58, 62, 79, 174, 186,
187 190, 191
2014 104, 69, 101, 105, 110 102 106, 179 104, 105, 102, 111, 122, 199 105, 109, 100, 102, 104, 107,
125, 108, 113, 115, 125, 179, 195 114, 193 112, 118, 119, 120, 121,
195 189, 193 123, 125, 195
Total # of 22 11 38 4 16 15 8 24 23 17 56
papers
Biomass power plants exist in over 50 countries around the The trend is the shift to hybrid systems. Hybrid renewable
world and supply a growing share of electricity. European coun- energy systems are becoming popular for remote area power
tries are expanding their total share of power from biomass, such generation applications due to advances in renewable energy
as Austria (7% of the renewable energy generation), Finland (20%), technologies [23].
and Germany (5%), while biogas for power generation is also a
growing trend in many countries. 3.4. Classification by application area
The main advantage of using geothermal energy is that this
renewable energy source can provide power 24 h per day due to it The review of the published literature is presented here with a
is constant. However, only a small fraction of the geothermal view to highlight the application areas and trends.
potential has been developed so far, and there is space for an In terms of application area, the papers were classified in seven
increasing use of geothermal energy both for electricity generation categories based on the emphasis of the research topic presented
and direct applications. and the scope of the application case study discussed.
E. Strantzali, K. Aravossis / Renewable and Sustainable Energy Reviews 55 (2016) 885–898 891
Application Area LCA CBA AHP/ANP MAUT/ PROMETHEE ELECTRE TOPSIS MULTIPLE REVIEW FUZZY OTHER
MAVT
Energy Policy and 31 49, 53, 86, 95, 101, 113, 90, 124 63, 129, 151, 138, 177, 129, 149, 177, 179, 184, 197 72, 76, 109, 56, 66, 143, 149, 155,
Management 129, 149 140, 144, 147 179, 192 182 182 138, 147 159, 170, 171, 176
Environmental Impact 28, 29, 32, 33, 84, 87, 98 77 80 185, 104 30 79, 88, 99, 104
Analysis 35, 42, 43, 44,
46, 104 185
Electrical network planning 40, 45 50 70, 83 83 70 70, 83 41 62, 186
Evaluation of Power genera- 34, 36, 39, 103, 48, 51 64, 103, 117, 163, 12, 102, 133, 142 139 74, 181, 102,103,150, 181, 2, 18, 89, 199 133, 139 58, 60, 81, 102, 107, 112,
Table 6
Percentage distribution of application areas by method.
Application Area LCA (%) CBA (%) AHP/ANP (%) MAUT/ PROMETHEE (%) ELECTRE (%) TOPSIS (%) MULTIPLE (%) REVIEW (%) FUZZY (%) OTHER (%)
MAVT (%)
Most of the papers are evenly distributed across four applica- high percentages. Most of the researchers try to build their own
tion areas, Energy Policy and Management, Evaluation of Power methods to face the particular problems in energy planning. It
generation technologies and projects and Regional and National seems that FUZZY and MULTIPLE are the new trends. Researchers
planning. Except from the first category Energy Policy and Man- tend to use more than one method in order to compare the results
agement, the other three categories are complicated and may be of the different methods and select the optimum solution. They,
easily confused. The basic difference of these three categories is also, try to face uncertainty and vagueness with the fuzzy set
the application of the case study in the papers. The higher share theory.
for the papers on these three categories is likely because these Suganthi et al. [200] review the applications of fuzzy logic
issues are more complex, which make the application of a DA based models in renewable energy systems and their study is
more meaningful (Tables 5). published in 2015. They found that fuzzy based models are
Table 6 shows that LCA and CBA are dominant to the fields of extensively used in recent years for site assessment, for installing
Energy Policy and Management and Environmental Impact Ana- photovoltaic/windfarms, power point tracking in solar photo-
lysis, respectively. Researchers tend to analyze the environmental voltaic/wind, optimization among conflicting criteria. Fuzzy logic
performance of energy technologies or projects using the classical helps in conceptualizing the fuzziness in the system into a crisp
method of life cycle analysis. It, also, might be the advantage of quantifiable parameter. Thus fuzzy logic based models can be
cost benefit analysis in translating all impact categories into adopted for effective energy planning to arrive at pragmatic
monetary terms that it are mainly applied to papers of sustainable solutions. They conclude that there is wide scope for research in
energy policy making. The future application of LCA is seen as a fuzzy based modeling in renewable energy systems.
tool supporting decision making where environmental issues are
of the utmost importance.
PROMETHEE and ELECTRE have no application at the field of 3.5. Evaluation criteria
Electrical network planning. TOPSIS has basically been applied to
the Energy Policy and Management and the Evaluation of Power The used criteria to evaluate energy planning projects in the
generation technologies and projects. Both PROMETHEE and literature mainly are divided to four aspects: Technical, Economic,
TOPSIS have zero percentages at the field of Environmental Impact Environmental and Social. In Table 7 the most frequently used
Analysis. subcriteria of each category are summarized.
Fig. 6 shows the percentage distribution of the used method Percentages given next to each criterion denote the frequency
per application area (the result is obtained from the division of the of occurrence of each criterion in the body of research.
number of papers in each method with the total number of papers It is observed that the investment cost and CO2 emissions
of each application area). locate the first place in all evaluation criteria, and job creation
For the traditional fields of Environmental Impact Analysis and follows closely, because of the focus on social aspects. Efficiency is
Electrical network planning LCA and AHP take the major share in the most used technical criteria to evaluate energy systems. It
the breakdown. It is noticed that AHP has a significant proportion seems that “efficiency”, “installed capacity”, “investment cost”,
in almost all the categories. The popularity of AHP is likely due to “operation and maintenance cost”, “CO2 emissions”, “land use”,
its simplicity, ease of understanding and sustainability for the “job creation” and “social acceptability” are the fundamental cri-
evaluation of qualitative criteria. For the rest of the fields teria that are able to determine the decision of the stakeholders.
researchers have to face multiple conflicting criteria taking into It should be noted that the frequency of occurrence of a cri-
account the preferences of numerous groups of actors. The cate- terion in the literature does not mean that it is the only necessary
gory OTHER is met to almost all the application areas with very factor to be taken into account. It makes sense to study all the
894 E. Strantzali, K. Aravossis / Renewable and Sustainable Energy Reviews 55 (2016) 885–898
Table 7 Table 8
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