Cost–benefit analysis of distributed energy systems considering multi-benefits and multi-stakeholders

Abstract

Total costs and benefits examination of a distributed energy system (DES) is essential to estimate whether a project is economically beneficial or not. In addition, because a DES usually involves various stakeholders, to maintain the cooperative relationship of them, a cost-benefit analysis (CBA) from each stakeholder’s perspective is also of vital importance. In this study, a Mixed Integer Nonlinear Programming (MINLP) model is proposed to deduce the optimal energy supply strategy of a DES. To execute a comprehensive assessment, besides the direct economic benefits, various non-energy ones are also paid enough attention to. Moreover, to implement the CBA, multi-benefits especially the non-energy ones are quantified and monetized using specific transferring methods to exploit their effects in monetary terms. As a result, a systematic CBA framework is developed considering both multi-benefits and multi-stakeholders for a DES. According to the simulation results of a case study, the exploitation of various non-energy benefits is significant which may entirely reflect the social values of a DES. Also, the CBA from each stakeholder’s viewpoint may increase their motivation to join the benefit-sharing union effectively. Furthermore, second benefit trade-off may be required to ensure the satisfied profit return for each stakeholder.