Selection of renewable energy development path for sustainable development using a fuzzy MCDM based on cumulative prospect theory: the case of Malaysia

Abstract

Malaysia's excessive energy consumption has led to the depletion of traditional energy reserves such as oil and natural gas. Although Malaysia has implemented multiple policies to achieve sustainable national energy development, the current results are unsatisfactory. As of 2022, only 2% of the country's electricity supply comes from renewable energy, which accounts for less than 30% of the energy structure. Malaysia must ensure energy security and diversified energy supply while ensuring sustainable energy development. This article uses the fuzzy multi-criteria decision-making(MCDM) method based on cumulative prospect theory to help decision-makers choose the most suitable renewable energy for sustainable development in Malaysia from four dimensions of technology, economy, society, and environment. The results show that solar power is the most suitable renewable energy for sustainable development, followed by biomass, wind, and hydropower, but the optimal alternative is sensitive to the prospect parameters. Finally, it was analyzed that efficiency, payback period, employment creation, and carbon dioxide (CO2) emissions are the most critical factors affecting the development of renewable energy in Malaysia under the four dimensions. Reasonable suggestions are proposed from policy review, green finance, public awareness, engineering education, and future energy. This research provides insightful information that can help Malaysian decision-makers scientifically formulate Sustainable development paths for renewable energy, analyze the problems encountered in the current stage of renewable energy development, and provide recommendations for Malaysia's future renewable energy transition and sustainable development.