Research on decision making of energy utilization project in China based on benefit evaluation

Abstract

PurposeThere are thousands of areas excluded from using electrical energy in China. It is mainly because that these places, which are away from towns, have the characteristics of scattered living and low-power consumption and are difficult to construct the power grid. The utilization of energy in remote areas could improve the level of education and quality of life for people living in there, which has great social significance. However, how to choose the optimal power generation model quantitatively according to local energy advantages is a difficult problem.Design/methodology/approachTo carry out a better assessment of the energy benefits of Chinese rural areas to assist the decision-making of energy utilization project, this paper takes Sunan Yugu Autonomous County in Gansu Province as an example. Four feasible energy utilization scenarios are proposed by analyzing its geographical conditions and re-source advantage, respectively, are photovoltaic power generation, biomass power generation, wind power generation and power grid extension. Based on the above scenarios, the evaluation index system of comprehensive utilization of energy in remote areas is constructed, and the comprehensive benefit of each model is evaluated by adopting entropy-based fuzzy comprehensive evaluation model.FindingsEvaluation results show that the comprehensive benefits of photovoltaic power generation is the best, followed by power grid extension. Thus, preference should be given to the two models in the energy utilization in Sunan County. This evaluation model can provide a scientific reference for the selection decision-making of energy utilization project, which is helpful to provide the feasibility and efficiency of the construction of energy utilization project.Originality/valueThe authors construct the comprehensive benefit evaluation index system and evaluate the comprehensive benefits of different scenarios are by using entropy - fuzzy comprehensive evaluation model. Then the qualitative problem can be analyzed quantitatively. The purpose of this study is to support the decision-making of energy investment. Simultaneously, the paper also has some practical significance in improving the credibility of the government and the quality of local people’s life.