Applying Fuzzy Engineering Economics to Evaluate Project Investment Feasibility of Wind Generation

In this paper, a fuzzy engineering economic decision model is derived to evaluate the investment feasibility of wind generation project. A straightforward vertex parameters’ fuzzy mathematics operation using the function principle is derived as an alternative to the traditional extension principle, and is applied to evaluate a number of different economic decision indexes. Compared to the extension principle, the function principle is simple to implement and is conceptually straightforward. Using Mellin transform, the geometric moments of the fuzzy economic indexes are established in order to determine their relative ranking as part of a decision-making process. The performance of the proposed fuzzy economic model is verified by considering their application to a practical wind generation project in Taiwan. These investigations not only confirm that the results of the fuzzy economic model is consistent with the conventional crisp model, but also demonstrate that the proposed model is more flexible, intelligent and computationally efficient compared to the extension principle fuzzy mathematics approach. The developed model represent readily implemented feasibility analysis tool for use in the arena of uncertain economic decision-making.