Selection of Optimum Renewable Energy Source for Energy Sector in Pakistan by Using MCDM Approach

Abstract

Power demands across the globe have been on rise for quite a time, and they will continue so in the years ahead. Most of the present day, energy requirements are met by non-renewable energy sources, i.e., burning fossil fuels which are not only expensive and polluting our environment but also depleting quite rapidly. A considerable portion of Pakistan import bills consists of petroleum products according to Pakistan Economic Survey 2015–2016. Renewable energy alternatives, i.e., wind, hydel, solar, and biomass, can be considered cheap, reliable, safe, and supply sustainable energy for the ever-increasing population. Renewable energy is getting more and more attention not only abroad but also in Pakistan as well. In order to decide the best renewable energy alternative for investment to meet rising energy demands of Pakistan, several factors such as economic, technological, and environmental have to be taken in consideration by the decision makers. Therefore, the paper discusses three important multiple criteria decision-making techniques, i.e., Analytical Hierarchy Process (AHP), Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS), and the VlseKriterijumska Optimizacija I Kompromisno Resenje (VIKOR) method in selection of the best renewable energy source that Pakistan should invest into. The results indicate that hydel power generation is the optimum source for meeting energy requirements followed by wind, biomass, and solar power-generating plants.