The multi-criteria method of searching for the best location of a distributed electricity generation installation, proposed and developed in this article, should be understood as an algorithm of conduct that finds the best solution among the available location variants, taking into account the relationships between the parameters of the criteria for assessing variants. The ranking of the location obtained thanks to the method should be treated as an element supporting the decision-maker and not making the final decision for them. As mentioned earlier, there are many methods of multi-criteria analysis, the selection of which depends on the knowledge and preferences of the decision-maker. There is currently no single method in place that should be used to address location issues in the energy sector.
According to the methodology for solving problems of the development of the energy sector, the analysis should start with determining the types of generating sources. The proposed method allows the ranking of locations of electricity generating sources, such as photovoltaic and wind farms, biogas plants, and biomass power plants. With the use of the presented method, it is possible to perform a ranking of the different types of sources of electricity.
2.1.1. The General Algorithm of the Method
This section provides an overview of the method. Based on an analysis of the study’s background, motivation, and objective, and during the author’s cooperation with experts from a local energy company, and a review of the related literature, I constructed a general algorithm of the method.
First of all, it is necessary to determine the type of distributed electricity generation sources. Identifying locations and assessment criteria should be understood as determining the specific parameters of each of the compared locations so that they can be compared against selected criteria. The set of location assessment criteria proposed by the author, among which the selection criteria used for the comparative location analysis is presented in
Table 1. The author proposes to use the advantage of the AHP method, which is weight determination by pair-vice comparison of criteria and a problem presentation in a hierarchical structure. When using the AHP method, weights should be determined for all main and specific criteria. A method of choosing decision criteria adapted to the specific decision situation has been proposed. This process is objective thanks to the AHP method.
The AHP method is used to choose from a general, universal set of criteria relevant for the assessment of the currently analyzed decision case. To be able to compare locations, one must compare criteria and select those that have the greatest impact on the desired location ranking. The author proposes to use the AHP method to determine the weight of the main and specific criteria by pair-vice matching relevant criteria.
If there is a need to reduce large data sets describing generating sources or gathering all the necessary information is not feasible the author proposes that the set of criteria adopted for further analysis should consider the eliminated and reduced criteria. After determining the set of criteria adopted for the analysis, the reference and anti-reference values should be determined using the NT method. Then, the authors propose to determine of metric distances of individual locations from the reference and anti-reference values. Using the NT method, the locations are organized due to the increasing values of the ranking coefficient, and the ranking is presented.
The general algorithm of the method is shown in
Figure 1. The diagram indicates the areas of application of the AHP method, numerical taxonomy (NT), and the author’s suggestions (AS).
2.1.2. Analytic Hierarchy Process
The AHP method is a hierarchical structure method, which is why the criteria are divided into main criteria, which directly affect the implementation of the investment and detailed criteria having an indirect impact on the implementation of the investment.
Figure 2. Depicts the hierarchical structure of the location problem in the power system.
The assumption of the AHP method is to compare pairs of criteria by creating a diagonal matrix of comparisons by
pairs of size (
) (Equation (1)), where
is the number of criteria. The AHP method is a method based on a hierarchical structure, shown in
Figure 2. The main criteria for the assessment
, which directly affect the result of the main analysis goal, are defined by specific criteria
. To determine the impact of the main criteria on the achievement of the analysis objective, they should be compared pair-vice according to the scale of comparisons presented in ref. [
22].
The specific criteria are compared in pairs with respect to the main criteria which they specify, so their impact on the achievement of the main objective is indirect [
23]. Individual preferences correspond to specific numbers of T. Saat’’s scale of comparisons [
22]. Giving relative preference is an important advantage of the method because the assessments are subjective and depend on expert judgment, which further increases the substantive correctness of the results. An expert is a person who has the knowledge and experience in a given field. In the case of multi-criteria issues, it is necessary to cooperate with experts from various fields, e.g., in the assessment of technological investment possibilities, taking into account its environmental impact [
12].
The impact of the criterion in the
i-th row on the criterion from the
j-th column
, is presented in a diagonal matrix of pair-vice comparisons of main criteria
X, as it is shown below:
If it has been determined that the criterion in the
i-th row is
more important than the criterion in the
j-th column, then the influence of the criterion in the
j-th column on the criterion from the
i-th row is equal to:
In case the compared criteria have the same impact, the product of the criteria equals one [
22]. For a diagonal matrix of pairs comparison of main criteria
a normalized inverse matrix
is determined, whose elements
arise by dividing each element of the matrix
by the sum of grades in a given column, according to the Equation:
Elements of the priority vector of individual main criteria due to the implementation of the main analysis goal
are determined by dividing the sums of individual rows of the normalized inverse matrix
by the number of criteria
n.
The values of the elements of the priority vector indicate the place of the i-th main criterion in the criteria ranking. The higher it is, the higher its ranking position and the greater its impact on achieving the analysis goal.
The priority vector
, consisting of the elements of the priority vector
is a column vector according to the notation:
Due to the inverse of pair-vice comparisons, the
i-th row is the inverse of the
i-th column of matrix
X, so there is equality [
23]:
The above Equation means that the
X-pair comparison matrix multiplied by the priority vector of individual criteria w satisfies the linear matrix equation, in which n is the eigenvalue of the
X. This enables the use of the matrix equations and the calculation of the inverse matrix, which reduces the level of sophistication of mathematical methods. The priority vector
is determined by solving the Equation:
where
is the unit matrix.
Since matrices
X and
I are known, the above Equation (7) is solvable and has non-zero solutions when
n is the eigenvalue of the matrix
X [
24]. Even though the method is simple to use due to the linear matrix equation, it can be time-consuming for a large number of criteria [
25].
As mentioned above, the expert making a pairwise linguistic comparison determines the advantage of one criterion over another, then writes their judgment in numerical form, according to [
24]. Because of the specific value of pairwise comparison
it is not directly quantified. The expert assessments may contain errors of erroneous assessments or logical errors. The AHP method allows slight deficiencies as a consequence of assessing criteria, which result in small changes in the coefficients of the pairwise comparison matrix and changes in the value of the priority vector
.
It has been proven that when the largest eigenvalue of the matrix
is equal to or close to the number of
n criteria being compared the expert comparisons are coherent and consistent [
22]. Pairwise comparisons are consistent if the largest eigenvalue of the matrix
is close to
n [
26].
A small, but acceptable, pairwise compared inconsistency causes a slight change in the largest eigenvalue of the matrix and represents a deviation from pairwise comparisons of the coherence factor expressed Consistency index (CI).
The determined inconsistencies factor CI compared with the Random Index (RI) allows the determination of the Consistency Ratio (CR), which determines the extent to which comparisons of the validity of criteria are incompatible with each other. RI values, which are presented in the study [
27].
The CR is easier to interpret than the CI because it is expressed as a percentage. The value of CR for the matrix (3 × 3) should not exceed 5%, for the matrix (4 × 4) it should be less than 8%, and for larger matrices, it should not exceed 10% [
28], so that pairwise comparisons can be considered consistent (compatible).
Priority vectors for the specific criteria (Equation (13)) are also determined by using the AHP method.
Assuming that
Si is the number of detailed criteria in a given group (
i-th main criterion), the following procedure is performed for each set of detailed criteria. Pairwise comparison of specific criteria is made according to their respective main criteria, as shown by the matrix of pairwise comparison of specific criteria:
Matrix of pairwise comparison of specific criteria multiplied by the priority vector of particular criteria satisfies the linear matrix Equation . Therefore, the following Equations (7) and (8), it is possible to determine the priority vector of pairwise comparison of specific criteria . According to the AHP method, CI and CR should also be determined.
It should be emphasized that priority vectors of specific criteria are determined only in relation to the main criteria, which specify, i.e., the impact of the criterion specifying the main criterion on another main criterion, for example is not tested.
The vector of global weights of the sub-criteria
is determined by multiplying the individual priority vectors of pairwise comparison of detailed criteria
by the corresponding elements of the priority vector of the pairwise comparison of the main criteria
, receiving the column vector as written:
The vector of global weights of sub-criteria presents the impact of each detailed criterion on the investment implementation.
2.1.3. Elimination of Redundant Criteria and Calculation of the Global Specific Criteria Weights
Due to the special nature of the issue, which is the choice of the location of the distributed generation energy source, the author proposes that the location analysis should be carried out for a set of sub-criteria.
The
criteria weights selected in the pairwise comparison process (Equation (6)) determine the position in the ranking of all criteria derived from the universal set of location assessment criteria proposed by the author. The criteria that do not describe a given generation source are also taken into account when determining the weighting of the criteria. Their weight is then zero. This is the case when comparing different types of generation sources, for example, a wind farm and a photovoltaic power plant [
29].
In addition, the expert can specify the impact threshold for specific criteria below which criteria are not taken into account for further calculations. Therefore, the author of this article proposes that the set of criteria adopted for further analysis should be determined to take into account the eliminated and reduced criteria.
The need to reduce the criteria for assessing the location of a power source can be explained by two reasons. The first reason concerns the need to use large data sets describing generating sources. Often, gathering all the necessary information is not feasible. The second reason is the so-called economic demand, which assumes that the minimum number of variables explains as many phenomena as possible.
The method of functional reduction of criteria occurs when there is a similarity between the criteria that allows a reduction in the number of calculations [
30]. Numeric reduction of criteria consists of combining criteria with the same impact, i.e., those with equal weights.
The reduction of the number of criteria significant for the analyzed location comparison, proposed by the author and described by the Equation (10), aims to reduce the number of necessary calculations to a minimum and to indicate and eliminate criteria with a negligible impact on the implementation of the investment and can be done by determining the acceptable threshold of weights of the specific criteria—
K. If the criterion weight is below the acceptable criterion threshold then it is not taken into account in further analyses and must meet the minimum value of the
K threshold, as stated in:
In the case of criteria whose impact on investment implementation is close to or equal to zero, or the expert has determined that the impact of a given criterion is acceptable, in order to be omitted in further analyzes, the weights for the criteria adopted for analysis should be re-determined.
If for criterion
the weight is lower than the acceptable threshold of weights of detailed criteria
then this criterion is included in the criteria adopted for further analysis (whose number is marked as
) according to the Equation:
where
is the original number of detailed criteria under the
i-th main criterion, and
is the number of detailed criteria under the
i-th main criterion after reduction according to the condition (100).
The number of criteria included in the analysis
is determined as the sum of the number of detailed criteria assigned to specific main criteria
and is determined from the Equation:
For a changed number of criteria adopted for further analysis
c, due to the removal of some elements of the global specific criteria weights vector
, the global specific criteria weights should be re-designated, marked as
.
The purpose of determining the global specific criteria weights is to meet the condition that the sum of the weights should be one, as described:
Determining the global specific criteria weights that are eligible for further analysis ends the use of the AHP method.
2.1.4. Numerical Taxonomy
The disadvantage of numerical taxonomy in its current form, known in the literature, is that the criteria are defined as maximum or minimum values among the values describing the criteria. By using the AHP method to determine the weight of criteria, this disadvantage has been eliminated.
Based on the numerical taxonomy method, reference and anti-reference values should be selected for each detailed criterion. The numerical taxonomy method compares locations relative to their metric distance from reference and anti-reference values, which results in the possibility of examining the problem more thoroughly, but it is necessary, to determine reference and anti-reference values.
The advantage of determining a location using a large number of criteria is the ability to examine it in detail and using a large number of parameters. Unlike other methods, numerical taxonomy can include technical criteria, which are most often omitted in location analyzes, due to the difficulty in making a comparative assessment. A large number of criteria and their diverse nature makes it difficult to compare them because they are defined in different ways and have different units. To ensure comparability of criteria, those that are destimulants should be converted to stimulants and normalized. Then the measures of the location distance from the reference values for each criterion describing the locations should be determined.
Determining metric distances from reference and anti-reference locations creates a location ranking. The location which is first in the ranking has the best chances of implementation.
The measure of the location distance from the reference values of the assessment meter, determined as the sum of the distance of Euclidean locations from the reference and anti-reference value in relation to each detailed criterion, is additionally multiplied by the weight of the criterion. As a result, the locations being at a large distance from the standard values for the criteria low weight are not placed at last places in the ranking of locations.
The measure of the distance of individual locations from the standard values is used to determine the final ranking coefficient whose values determine the position of a given location in the ranking.
The next step towards determining the ranking of locations is to determine reference and anti-reference values for specific criteria. A location for which all criteria are close to reference values can be defined as a reference location. The reference and anti-reference set out for individual criteria are determined using elements of the numerical taxonomy method.
The reference location is the one whose chances of success are maximal, in contrast to an anti-reference location that has no chance of implementation. It should be emphasized that fictitious reference and anti-reference locations are not included in the ranking, although this is not unacceptable.
The reference
and anti-reference
indicate location points in the space of the Cartesian system (
x,y) (
Figure 3). Locations marked as points
are ranked relative to the distance
orthogonal projections of individual locations
from the reference location
[
31].
The length of the section
can be determined using Carnot’s theore’ [
31], according to the Equation:
The reference and anti-reference can be determined in two ways:
Method 1: Determining the reference as a function of maximum and anti-reference as a function of minimum from among the criterion values for compared locations. For this case, all criteria must be designated as stimulants.
Method 2: Determination of the reference and anti-reference value by the experts.
The predominance of the expert method of determining the reference and anti-reference value in relation to defining it as a MIN / MAX function from the values given is the reduction of the weight of locations that have the highest value relative to the given criterion which is sufficient for it and may not guarantee success in the implementation of the investment.
In the case where the reference and anti-reference value is not specified as the MIN or MAX function or when the reference and anti-reference value are specified by an expert, the objects may be better or worse than the reference and anti-reference value. The advantage of considering better or worse values than the reference value is the freedom to choose and control over the set points of the reference and anti-reference value.
The method of determining the location ranking was based on the numerical taxonomy. The method’s assump’ion is the classification, ordering and analysis of multi-feature energy sources location.
For the set of energy sources locations
a matrix of location values
A should be determined in relation to particular detailed criteria.
To determine the location ranking, Euclidean distances of orthogonal projections of individual locations from the reference value should be determined. Due to the different values describing individual criteria (e.g., the cost criterion value is given in monetary units and the social one is determined by a five-point scale), it is not possible to compare them with each other without prior normalization.
Increasing or decreasing the weight value of the criterion before normalization may result in the loss of standard deviation. Therefore, the determination of weights in the numerical taxonomy method follows normalization. The proposed method assumes the determination of criteria weights using the AHP method—thus, weights will not be determined by the numerical taxonomy method.
The object rank method based on the numerical taxonomy method requires that all criteria be stimulants. If the value of the
i-th detailed criterion
, specified for each location as
is a destimulant, it should be changed to the stimulant
by transforming
according to the Equation:
Thanks to this transformation, the criterion value maintains the standard deviation and the arithmetic mean.
To compare the criteria of different sizes and units, normalization should be done. With normalization, it is possible to describe the criteria for using different scales (numerical rates) and compare them with each other. The normalized value for each location
is determined by the Equation:
Location ranking consists of ordering them according to distance measurement values
which are normalized values of the distance of their orthogonal projections
from the reference location
. The values of the distance measure
are in the range 0–1. The distance measure is determined from the Equation:
where
is the Euclidean distance of the reference
and anti-reference value
.