Abstract
Energy procurement for global companies grows more challenging with improved sustainable energy opportunities, increasing greenhouse gas compliance reporting, electricity market regulatory changes, and customer pressure for companies to be sustainable. With so many dimensions to the challenge, it is difficult to simultaneously weigh the options and make a fully informed decision. In this case study, we develop a multi-criteria model to support global companies’ sustainable energy procurement decisions. The model synthesizes calculated and judgment-based metrics for both environmental and business considerations using the Analytica decision modeling software. In order to facilitate the use of this powerful modeling platform for multi-criteria strategy applications, we implement two new generic modules, one for multi-attribute utility and one for decision-analytic strategy tables. We then apply the model to a real-world case study for a multinational company, using a stochastic framework with Monte Carlo simulation to create a range of values for the various strategies. The model can be replicated for similar energy purchasing decisions, while the modules can be reused for a wide range of decision modeling situations.
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Data availability
The Analytica code for the MAUT and Strategy Table modules and the full model with associated case study data are available from https://github.com/donald-jenkins001/Strategic-Sustainable-Energy-Analytica-Model.
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The authors did not receive any financial support from any organization for the submitted work.
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All authors contributed to the study conception and design. Material preparation, data collection, and analysis were performed by DJJ. The initial draft of Sects. 3.1 and 3.2 were written by JMK, with DJJ writing the initial draft for remaining sections. All authors commented on previous versions of the manuscript. All authors read and approved the final manuscript.
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Donald J. Jenkins reports a relationship with Enel-X North America that included employment through the end of August 2019. Enel X is an energy services company operating in many countries with a unit based in Massachusetts supporting customers in North America. No funds or support were provided by Enel-X in the conduct of this research. Jeffrey M. Keisler reports that he is on the editorial board of Environment Systems and Decisions.
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Jenkins, D.J., Keisler, J.M. A decision analytic tool for corporate strategic sustainable energy purchases. Environ Syst Decis 42, 504–520 (2022). https://doi.org/10.1007/s10669-022-09866-y
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DOI: https://doi.org/10.1007/s10669-022-09866-y