Keywords: multicriteria decision making, MCDM, analytical hierarchy process, AHP, Finnish energy sector, Finland
The model based on the analytic hierarchy process for dynamic decision making in the energy industry: a case analysis of investment energy production in Finland
The goal of the research was to find out, define and evaluate the major factors of the decision-making process in the energy industry, especially in Finland. The theoretical part of the current research consists of energy system models and Analytic Hierarchy Process (AHP) model theories. The additional objective was to determine the characteristics of the Finnish energy industry. The research methodologies which were used were an action analytical and a constructive case research. The empirical data were collected using participant observation (including informal discussions) and formal questionnaires. The validity of the results of the AHP was tested by different statistical parameters and brainstorming. The results showed a high validity. The construction was tested by a weak market test, whose result was positive. The results showed that the main factors, which have an effect on the energy sector investments' life cycle profits, are both the financial and political factors. In the future, it is obvious that certain changes are taking place in the industry and, therefore, the dynamic multicriteria decision-making process will help make the decisions. The results clearly showed that with the model, the important factors in the investment decision-making process are found.