An Experimental Research Study on the Solution of a Private Small Hydropower Plant Investments Selection Problem by ELECTRE III/IV, Shannon’s Entropy, and Saaty’s Subjective Criteria Weighting

Abstract

Almost all of the today’s modern daily life conditions of humankind depend on the electricity. The countries either by only themselves or sometimes with some international intuitions and/or organizations have been trying to find the best methods, ways, and projects to supply the electricity to their societies. One of the important tools for the countries to increase the amount and quality of the electricity generation is to activate/ignite/initiate the private investment capabilities/opportunities. The electricity generation market in Turkey is a free/open market for both the foreign and domestic private investors. Hence, both the foreign and domestic private investors have been looking for the most suitable electricity generation plant projects. Small hydropower plant (SHPP) investments (SHPPIs) are one of the alternatives in the Turkish electricity generation market especially for the private investors searching for the renewable energy investments. This experimental research study investigates the possibility of using the ELECTRE III/IV, Shannon’s Entropy, and Saaty’s Analytic Hierarchy Process (AHP) subjective weighting (for criteria) methods for the solution of this problem. In the experimental case study, the most appropriate SHPPIs amongst five alternative SHPPIs at the SHPPIs’ predevelopment investment stages in Turkey were evaluated and ranked in order.