Page 24 - Decision Making Applications in Modern Power Systems

Multicriteria decision-making methodologies Chapter | 1 5

are the
where the number of criteria is represented by m, and p K i and p L i
actual values of the Kth and Lth alternative w.r.t. the ith criteria. w i is the
weight of the ith criteria. The value of WðP k =P L Þ determines the desirability
of an alternative [25].
If WðP k =P L Þ $ 0 or 1, alternative P k is considered better than P L . The best
alternative is the one whose WðP k =P L Þ is found to be closer to “1.” The
value closer to “1” signifies that the selected alternative is closest to all other
alternatives. An alternative approach to this is considered by avoiding the
use of ratios. This is given by
m

w i
ðÞ ð1:3Þ
WP k 5 L p K i
i51
ðÞ, which is the performance index of (P K )p K consider-
The value of WP k
ing all the criteria, determines the best alternatives. The ranking is made
ðÞ.
based on the value of WP k
It is to be noted that the first method of WPM is a dimensionless
approach, whereas the later has dimensions. The first method that is based
on the relative method is found to be beneficial than the latter [8].
1.2.3 Analytic hierarchy process
The AHP, proposed by R.W. Saaty in 1977 [26], is widely used by the
energy planners to manage resources, making public policies, logistics, and
transportation engineering worldwide. The method was later revised and
updated in 1980. This method converts the operational problem to a hierar-
chical model. The detailed explanation of AHP model has been illustrated
thoroughly with a real case study for the design of rural microgrids based on
renewable energy sources in Ref. [27]. Table 1.1 provides a summary of few
studies based on AHP in energy planning.

1.2.4 Technique for order preference by similarity to ideal
solutions

TOPSIS, originally developed by Hwang and Yoon in 1981, is one of the
popular MCDM models, which has the ability and applicability to provide
solutions to real-world problems [40,41]. This method has a wide application
area ranging from microgrid/energy planning, energy management, supply
chain and logistics, water and waste resource management, manufacturing
and design engineering, business and industrial management, etc. [41]. This
MCDM method is based on the concepts of geometric distances where the
best alternatives have a very short distance from the positive ideal solution
1
(PIA ) and a precisely longer distance from the negative ideal solution
2
(NIA ) [42].
Fig. 1.2 shows the detailed process for the implementation of TOPSIS
method. It consists of major six steps that are as follows [27,43]: