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

Ren, Hongbo, Wu, Qiong, Zhu, Qunzhi, Gao, Weijun
Energy 2019 v.189 pp. 116382
case studies, cost benefit analysis, energy, financial economics, models, motivation, social benefit, stakeholders
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.