Application of PROMETHEE method for demand side management (DSM) options ranking

Abstract

Demand Side Management (DSM) is a method used to modify the electrical load profile of a consumer to reduce its electricity bill. There are various types of DSM options available but mostly involve costs to be incurred by consumers. Moreover, the effectiveness of a DSM option depends on various factors including investment cost, saved energy, payback period and more. Multi Criteria Decision Analysis (MCDA) is a tool that can be applied to make decision when a lot of factors to be taken into account. In DSM, Analytical Hierarchy Process (AHP) is one MCDA technique that is widely used in ranking the DSM options. However, AHP requires additive aggregation that may cause lost in detailed information. This paper presents another MDCA method; Preference Ranking Organization Method for Enrichment Evaluation (PROMETHEE) to perform the ranking of DSM options. PROMETHEE (I and II) were used in a case study and the results shows that PROMETHEE give the same result as AHP. PROMETHEE has an advantage over AHP as it does not require additive aggregation even the problem is multi-dimensional and could provide visual analysis.