Multi-criteria evaluation of residential energy supply systems

In this paper, we consider the selection of a residential energy supply system as a multi-criteria decision-making problem, which involves both financial and environmental issues. Specifically, we compare micro-CHP (micro-cogeneration) heating with traditional heating systems through an evaluation that accounts for: (i) the decision-makers' subjective preferences, (ii) uncertainties in the performance of micro-CHP heating systems (which are partly caused by the lack of long-term operational experiences) and (iii) the context-dependency of life-cycle costs and environmental burdens of heating systems. Motivated by these considerations, we employ the PAIRS multi-criteria decision-making methodology that captures incomplete information by way of interval-valued parameters and provides support for sensitivity analyses, too. Our comparative analysis of alternative heating systems suggests that micro-CHP is a reasonable alternative to traditional systems, particularly from the environmental point of view. (C) 2007 Elsevier B.V. All rights reserved.