Prospect Theory-Based q-Rung Orthopair Fuzzy TODIM Method for Risk Assessment of Renewable Energy Projects

Traditional fossil fuels and has become an important component of clean energy. Vigorously investing in and developing renewable energy projects is of great strategic significance for enhancing sustainable energy development. Due to the unique nature of energy project investment, evaluating the investment risks of renewable energy projects is crucial for enhancing project feasibility. Therefore, this study propounds a novel multiple-criteria group decision framework based on the extended TODIM method (an acronym in Portuguese for Interactive and Multi-criteria Decision Making) under q-rung orthopair fuzzy (q-ROF) set for the application of renewable energy project investment risk assessment. To begin with, a novel q-ROF Lance distance measure is propounded for conquering the deficiencies caused by the prior distances. Then, an improved weight model by the defined q-ROF Lance distance is applied for determining the weight of experts, and an integration model that incorporates the group individual best and worst (GIBWM) and criteria importance through inter-criteria correlation (CRITIC) is presented for ascertaining the synthetics weight of criteria. Afterward, an extended TODIM method based upon the prospect theory using the proposed Lance distance measure is developed to rank alternatives. Furthermore, a hybrid decision framework is constructed to assess the investment risk of renewable energy projects. The sensitivity analysis regarding the risk avoidance coefficient is conducted to explore the stability and robustness of the propounded assessment framework. Further, the extant methodologies are utilized to compare with the designed decision framework to highlight its strengths and superiorities. The outcomes exhibit that the propounded framework can provide efficient decision support for assessing renewable energy project investment risk by modeling the uncertainty and psychological behavior of the assessment procedure.