Investment scenarios and regional factors in the solar energy sector

Panagiotis Liargovas, Nikolaos Apostolopoulos


This paper examines the effects of regional factors related to macroeconomic, environmental and energy data in relation to regional investment attractiveness to the solar energy sector. It focuses on renewable energy expansion, as it is key to sustainable economy and global challenges. Applying an AHP method, the paper aims to determine the significance of some criteria with reference to the regional investment attractiveness of solar energy enterprises. The AHP method is applied to approach investments in the solar energy sector, by incorporating regional factors in decision-making. Ten investment scenarios are created and their scores are calculated based on regional factors. It is found that regions vary in terms of their investment attractiveness in the solar energy sector.

Full Text:



Afgan, N.H. and Carvalho, M.G. (2002) Multi-criteria assessment of new and renewable energy power plants, Energy, 27, 739–755.

Allan, G.P., McGregor, P. and Swales, K. (2011) The Importance of Revenue Sharing for the Local Economic Impacts of a Renewable Energy Project: A Social Accounting Matrix Approach, Regional Studies, 45(9), 1171–1186.

Bull, S.R. and Billman, L. (1999) Renewable Energy: Ready to Meet Its Promise? The Washington Quarterly, 23(1), 229–244.

Chen, M.K. and Wang, S.C. (2010) The critical factors of success for information service industry in developing international market: Using analytic hierarchy process (AHP) approach, Expert Systems with Applications, 37, 694–704.

Commission of the European Community. (2008) Regions 2020: An assessment of future challenges for EU regions. /docoffic/working/regions2020/pdf/regions2020_en.pdf (Accessed 2 January 2016).

Ernst and Young. (2012) Renewable energy country attractiveness indices.$FILE/EY_RECAI_issue_33.pdf (Accessed 2 January 2016).

EurObserv’ER. (2015) Photovoltaic barometer. (Accessed 2 January 2016).

European Commision. (2011) Energy Roadmap 2050. European Commission. (Accessed 2 January 2016).

European Union. (2011) Regional policy contributing to sustainable growth in Europe. European Union.

Feder, D. (2004) A Regionally Based Energy End-Use Strategy: Case Studies from Centre County Pennsylvania, The Professional Geographer, 56(2), 185–200.

Greek Ministry for Environment, Energy and Climate Change. (2010) National Renewable Energy Action Plan in the scope of Directive 2009/28/EC. Greek Ministry for Environment, Energy and Climate Change.

Hamalainen, R.P. and Karjalainen, R. (1992) Decision support for risk analysis in energy policy, European Journal of Operational Research, 56, 172–183.

He, Y. and Guo, S. (2011) Energy Strategy Develops Dominant Decision-Making Based on AHP. In: IEEE International Conference on Mechatronic Science, Electric Engineering and Computer, 19–22 August, Jilin.

International Energy Agency. (2015) Trends in 2014 in photovoltaic applications, Photovoltaic Power Systems Programme. Available at: (Accessed 25 January 2016).

Ke, C., Dang, F. and Wang, J. (2011) Application of AHP in the selection of our country wind farm’s location. International Conference on Management and Service Science. 12–14 Aug, Wuhan.

Kearns, G.S. (2004) A multi-objective, multi-criteria approach for evaluating IT investments: Results from two case studies. Information Resources Management Journal, 17(1), 37–62.

Lee, S.K., Mogi, G. and Kim, J.W. (2008) The competitiveness of Korea as a developer of hydrogen energy technology: The AHP approach, Energy Policy, 36, 1284–1291.

Motohashi, K. (1998) Innovation strategy and business performance of Japanese manufacturing firms, Economics of Innovation & New Technology, 7(1), 27–52.

Prahalad, C.K. and Hamel, G. (1990) The core competence of the corporation. Harvard Business Review, 68(3), 79–93.

Nagesha, N. and Balashandra, P. (2006) Barriers to energy efficiency in small industry clusters: Multi-criteria-based prioritization using the analytic hierarchy process, Energy, 31(12), 1969–1983.

Nevima, J. and Kiszova, Z. (2012) Evaluation of regional competitiveness – case study of Visegrad – Four regions using an analytic hierarchy process. In: 3rd International conference on development, environment, energy, economics, 2–4 December. Paris.

Organisation for Economic Co-operation and Development. (OECD). 2012 Inclusive Green Growth: For the future we want. OECD.

Porter, M.E. (1990) The Competitive Advantage of Nations, MacMillan Press Ltd.

Saaty, T. L., & Vargas, L. G. (2013). The Logic of Priorities: Applications of Business, Energy, Health and Transportation. Springer Science & Business Media.

Saaty, T.L, Vargas, L.G. and Dellmann, K. (2003) The allocation of intangible resources: The analytic hierarchy process and linear programming. Socio-Economic Planning Science, 37(3), 169–184.

Saaty, T.L. and Vargas, L.G. (2001) Models, methods, concepts and applications of the analytic hierarchy process. New York: Springer Science and Business Media.

Secme, N.Y., Bayrakdaroglu, A. and Kahraman, C. (2009) Fuzzy performance evaluation in the Turkish Banking Sector using Analytic Hierarchy Process and TOPSIS. Expert Systems with Applications, 36, 11699–11709.

Solar Power Europe. (2015) Global Market Outlook for Solar Power 2015–2019. Available at: (Accessed 20 December 2015).

Toossi. A., Camci, F. and Varga, L. (2013) Developing an AHP based decision model for energy systems policy making. In: IEEE International Conference on Industrial Technology (ICIT), 25–28 Feb, Cape Town.

Wang, G., Huang, S.H. and Dismukes, J.P. (2004) Product-driven supply chain selection using integrated multi-criteria decision making methodology, International Journal of Production Economics 91(1), 1–15.

Wang, X. and Feng, Z. (2002) Sustainable development of rural energy and its appraising system in China. Renewable and Sustainable Energy Reviews, 6(4), 395–404.

Wu, J. and Wu, N. (1984) Analyzing Multi-dimensional Attributes for the Single Plant Location Problem via an Adaptation of The Analytic Hierarchy Process. International Journal of Operations & Production Management, 4(3), 13–21.

Xiao, J. (2012) Evaluation of Sustainable Competitiveness of the Textile Industry Based on AHP. In: IEEE International Conference on Management of e-Commerce and e-Government. 20–21 October, Beijing.



  • There are currently no refbacks.

ISSN: 2254-4380