Selection of Photovoltaic Solar Power Plant Investment Projects - An ANP Approach
In this paper the Analytic Network Process (ANP) is
applied to the selection of photovoltaic (PV) solar power projects.
These projects follow a long management and execution process
from plant site selection to plant start-up. As a consequence, there are
many risks of time delays and even of project stoppage.
In the case study presented in this paper a top manager of an
important Spanish company that operates in the power market has to
decide on the best PV project (from four alternative projects) to
invest based on risk minimization. The manager identified 50 project
execution delay and/or stoppage risks.
The influences among elements of the network (groups of risks
and alternatives) were identified and analyzed using the ANP
multicriteria decision analysis method. After analyzing the results the
main conclusion is that the network model can manage all the
information of the real-world problem and thus it is a decision
analysis model recommended by the authors. The strengths and
weaknesses ANP as a multicriteria decision analysis tool are also
described in the paper.
[1] Saaty TL. The analytic hierarchy process: planning, priority setting,
resource allocation. RWS Publications: Pittsburgh; 1996.
[2] Saaty TL. Decision making with independence and feedback: The
Analytic Network Process. RWS Publications: Pittsburgh; 2001.
[3] Meade LM, Presley A. R&D project selection using the analytic network
process. IEEE Transactions on Engineering Management 2002; 49; 59-
66.
[4] Mohanty RP, Agarwal R, Choudhury AK, Tiwari MK. A fuzzy ANPbased
approach to R&D project selection: a case study. International
Journal of Production Research 2005; 43(24); 5199-5216.
[5] Cheng EWL, Li H. Analytic network process applied to project
selection. Journal of Construction Engineering and Management 2005;
131; 459-466.
[6] Wey WM, Wu KY. Using ANP priorities with goal programming in
resource allocation in transportation. Mathematical and Computer
Modelling 2007; 46; 985-1000.G. O. Young, "Synthetic structure of
industrial plastics (Book style with paper title and editor)," in Plastics,
2nd ed. vol. 3, J. Peters, Ed. New York: McGraw-Hill, 1964, pp. 15-64.
[7] Liang C, Li Q. Enterprise information system project selection with
regard to BOCR. International Journal of Project Management,
doi:10.1016/j.ijproman.2007.11.001
[8] Gencer C, G├╝rpinar D. Analytic network process in supplier selection: A
case study in an electronic firm. Applied Mathematical Modelling 2007;
31; 2475-2486.
[9] Jharkharia S, Shankar R. Selection of logistics service provider: An
analytic network process (ANP) approach. Omega-The International
Journal of Management Science 2007; 35; 274-289.
[10] Cheng EWL, Li H. Contractor selection using the analytic network
process. Construction Management and Economics 2004; 22; 1021-1032
[11] Demirtas EA, Üstün Ö. Analytic network process and multi-period goal
programming integration in purchasing decisions. Computers and
Industrial Engineering (in press), doi:10.1016/j.cie.2006.12.006
[12] Khan S, Faisal MN. An analytic network process model for municipal
solid waste disposal options. Waste Management,
doi:10.1016/j.wasman.2007.06.015
[13] Tuzkaya G, Önüt S, Tuzkaya UR, Gülsün B. An analytic network
process approach for locating undesirable facilities: An example from
Istanbul, Turkey. Journal of Environmental Management,
doi:10.1016/j.jenvman.2007.05.004
[14] Ayağ Z, Özdemir RG. An analytic network process-based approach to
concept evaluation in a new product development environment. Journal
of Engineering Design 2007; 18(3); 209-226.
[15] Erdo─ƒmu┼ƒ ┼×, Aras H, Ko├º E. Evaluation of alternative fuels for
residential heating in Turkey using analytic network process (ANP) with
group decision-making. Renewable and Sustainable Energy Reviews
2006; 10; 269-279.
[16] Raisinghani, H.S., Meade, L., Schkade, L. Strategic e-business decision
analysis using Analytic Network Process. IEEE transactions on
Engineering Management 2007, 54 (4); 673-686.
[17] Aragonés-Beltr├ín P., Aznar J., Ferr├¡s-O├▒ate J., Garc├¡a-Mel├│n M.
Valuation of urban industrial land: an Analytic Network Process
approach. European Journal of Operational Research 2008; 185-1; 322-
339.
[18] Garc├¡a-Mel├│n M., Ferr├¡s-O├▒ate J., Aznar J., Aragonés-Beltr├ín P.,
Poveda-Bautista R. Farmland appraisal: an Analytic Network Process
(ANP) approach. Journal of Global Optimization (in press), DOI
10.1007/s10898-007-9235-0, 2007
[19] Agarwal A, Shankar R, Tiwari MK. Modeling the metrics of lean, agile
and leagile supply chain: An ANP-based approach. European Journal of
Operational Research 2006; 173; 211-225.
[20] Haktan─▒lar B. Determination of the appropriate energy policy for Turkey.
Energy 2005; 30; 1146-1161.
[21] Chung S, Lee AHI, Pearn WL. Analytic network process (ANP)
approach for product mix planning in semiconductor fabricator.
International Journal of Production Economics 2005; 96; 15-36.
[22] Ravi V, Shankar R, Tiwari MK. Analyzing alternatives in reverse
logistics for end-of-life computers: ANP and balanced scorecard
approach. Computers & Industrial Engineering 2005; 48; 327-356.
[23] Niemira MP, Saaty TL. An Analytic Network Process model for
financial-crisis forecasting. International Journal of Forecasting 2004;
20; 573-587.
[1] Saaty TL. The analytic hierarchy process: planning, priority setting,
resource allocation. RWS Publications: Pittsburgh; 1996.
[2] Saaty TL. Decision making with independence and feedback: The
Analytic Network Process. RWS Publications: Pittsburgh; 2001.
[3] Meade LM, Presley A. R&D project selection using the analytic network
process. IEEE Transactions on Engineering Management 2002; 49; 59-
66.
[4] Mohanty RP, Agarwal R, Choudhury AK, Tiwari MK. A fuzzy ANPbased
approach to R&D project selection: a case study. International
Journal of Production Research 2005; 43(24); 5199-5216.
[5] Cheng EWL, Li H. Analytic network process applied to project
selection. Journal of Construction Engineering and Management 2005;
131; 459-466.
[6] Wey WM, Wu KY. Using ANP priorities with goal programming in
resource allocation in transportation. Mathematical and Computer
Modelling 2007; 46; 985-1000.G. O. Young, "Synthetic structure of
industrial plastics (Book style with paper title and editor)," in Plastics,
2nd ed. vol. 3, J. Peters, Ed. New York: McGraw-Hill, 1964, pp. 15-64.
[7] Liang C, Li Q. Enterprise information system project selection with
regard to BOCR. International Journal of Project Management,
doi:10.1016/j.ijproman.2007.11.001
[8] Gencer C, G├╝rpinar D. Analytic network process in supplier selection: A
case study in an electronic firm. Applied Mathematical Modelling 2007;
31; 2475-2486.
[9] Jharkharia S, Shankar R. Selection of logistics service provider: An
analytic network process (ANP) approach. Omega-The International
Journal of Management Science 2007; 35; 274-289.
[10] Cheng EWL, Li H. Contractor selection using the analytic network
process. Construction Management and Economics 2004; 22; 1021-1032
[11] Demirtas EA, Üstün Ö. Analytic network process and multi-period goal
programming integration in purchasing decisions. Computers and
Industrial Engineering (in press), doi:10.1016/j.cie.2006.12.006
[12] Khan S, Faisal MN. An analytic network process model for municipal
solid waste disposal options. Waste Management,
doi:10.1016/j.wasman.2007.06.015
[13] Tuzkaya G, Önüt S, Tuzkaya UR, Gülsün B. An analytic network
process approach for locating undesirable facilities: An example from
Istanbul, Turkey. Journal of Environmental Management,
doi:10.1016/j.jenvman.2007.05.004
[14] Ayağ Z, Özdemir RG. An analytic network process-based approach to
concept evaluation in a new product development environment. Journal
of Engineering Design 2007; 18(3); 209-226.
[15] Erdo─ƒmu┼ƒ ┼×, Aras H, Ko├º E. Evaluation of alternative fuels for
residential heating in Turkey using analytic network process (ANP) with
group decision-making. Renewable and Sustainable Energy Reviews
2006; 10; 269-279.
[16] Raisinghani, H.S., Meade, L., Schkade, L. Strategic e-business decision
analysis using Analytic Network Process. IEEE transactions on
Engineering Management 2007, 54 (4); 673-686.
[17] Aragonés-Beltr├ín P., Aznar J., Ferr├¡s-O├▒ate J., Garc├¡a-Mel├│n M.
Valuation of urban industrial land: an Analytic Network Process
approach. European Journal of Operational Research 2008; 185-1; 322-
339.
[18] Garc├¡a-Mel├│n M., Ferr├¡s-O├▒ate J., Aznar J., Aragonés-Beltr├ín P.,
Poveda-Bautista R. Farmland appraisal: an Analytic Network Process
(ANP) approach. Journal of Global Optimization (in press), DOI
10.1007/s10898-007-9235-0, 2007
[19] Agarwal A, Shankar R, Tiwari MK. Modeling the metrics of lean, agile
and leagile supply chain: An ANP-based approach. European Journal of
Operational Research 2006; 173; 211-225.
[20] Haktan─▒lar B. Determination of the appropriate energy policy for Turkey.
Energy 2005; 30; 1146-1161.
[21] Chung S, Lee AHI, Pearn WL. Analytic network process (ANP)
approach for product mix planning in semiconductor fabricator.
International Journal of Production Economics 2005; 96; 15-36.
[22] Ravi V, Shankar R, Tiwari MK. Analyzing alternatives in reverse
logistics for end-of-life computers: ANP and balanced scorecard
approach. Computers & Industrial Engineering 2005; 48; 327-356.
[23] Niemira MP, Saaty TL. An Analytic Network Process model for
financial-crisis forecasting. International Journal of Forecasting 2004;
20; 573-587.
@article{"International Journal of Earth, Energy and Environmental Sciences:59247", author = "P. Aragonés-Beltrán and F. Chaparro-González and J. P. Pastor Ferrando and M. García-Melón", title = "Selection of Photovoltaic Solar Power Plant Investment Projects - An ANP Approach", abstract = "In this paper the Analytic Network Process (ANP) is
applied to the selection of photovoltaic (PV) solar power projects.
These projects follow a long management and execution process
from plant site selection to plant start-up. As a consequence, there are
many risks of time delays and even of project stoppage.
In the case study presented in this paper a top manager of an
important Spanish company that operates in the power market has to
decide on the best PV project (from four alternative projects) to
invest based on risk minimization. The manager identified 50 project
execution delay and/or stoppage risks.
The influences among elements of the network (groups of risks
and alternatives) were identified and analyzed using the ANP
multicriteria decision analysis method. After analyzing the results the
main conclusion is that the network model can manage all the
information of the real-world problem and thus it is a decision
analysis model recommended by the authors. The strengths and
weaknesses ANP as a multicriteria decision analysis tool are also
described in the paper.", keywords = "Multicriteria decision analysis, Analytic Network Process, Photovoltaic solar power projects.", volume = "2", number = "8", pages = "110-9", }
