A Two-Stage Approach of DEA and AHP in Selecting Optimal Wind Power Plants

Abstract

Sustainable development has become a global tendency in the growth orientation of governments. Renewable energies such as wind and solar have attracted many concerns in reducing the level of fossil fuels dependence. One of the most significant stages in such a transmission process is determining the most suitable location. This article aims to propose a novelty approach combining two multiple criteria decision making models, namely data envelopment analysis (DEA) and analysis hierarchy process (AHP) to recommend the most optimal site for wind power plants. Vietnam has been one of the most successful ASEAN nations in attracting renewable energy investments; hence, the article considers it as a case study. In the first stage, there are five inputs and outputs conducted by DEA models to choose the five most potential alternatives among 12 locations for the next stage. In the second stage, the AHP model is implemented on five main criteria and 20 subcriteria that are referred to the options of experienced experts. The findings show that Ninh Thuan province, which is obtained with the highest final score (0.374), is the most suitable location for wind power plants construction. The article has contributed to renewable literature in terms of methodologies as well as to practice for both public and private stakeholders.