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

Hongbo Ren, Qiong Wu, Qunzhi Zhu and Weijun Gao

Energy, 2019, vol. 189, issue C

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.

Keywords: Distributed energy system; Cost-benefit analysis; Multi-stakeholders; Multi-benefits; Non-energy benefits; Benefits monetization (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:189:y:2019:i:c:s0360544219320778

DOI: 10.1016/j.energy.2019.116382

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