A multi criteria data envelopment analysis model to evaluate the efficiency of the Renewable Energy technologies

The growing concern in the negative effects of fossil fuels on the environment has forced a more intensive use of Renewable Energy sources which are considered an important solution to the large atmospheric pollution caused from fossil fuel combustion. In the electricity-generating industry, due to the high costs associated with the construction and operation of plants and the regulations that enforce productivity evaluations, efficiency is a key managerial concept. DEA is a non-parametric method which produces detailed information on the efficiency of a unit, to be measured without any assumptions regarding the functional form of the production function. In this paper, the efficiency of 13 Renewable Energy technologies is evaluated through a Multiple Criteria Data Envelopment Analysis (MCDEA) model. Two additional criterion, the minsum and minimax criterion, are included in the model which are the most restrictive than that defined in the classical DEA. The results show that the only Decision Making Unit rated as efficient is the Windpower 10 ≤ P ≤ 50 MW technology and it can be considered the only non-dominated solution.

► We evaluate the efficiency of 13 Renewable Energy technologies.
► We use a Multiple Criteria Data Envelopment Analysis model.
► We include two more restrictive criteria than that defined in the classical DEA.
► Technologies efficient under DEA prove to be inefficient under the MCDEA model.