Uses of frontier efficiency methodologies and multi-criteria decision making for performance measurement in the energy sector

Guest editorial Ali Emrouznejad is a Senior Lecturer at the Aston Business School in Birmingham, UK. His areas of research interest include performance measurement and management, efficiency and productivity analysis as well as data mining. He has published widely in various international journals. He is an Associate Editor of IMA Journal of Management Mathematics and Guest Editor to several special issues of journals including Journal of Operational Research Society, Annals of Operations Research, Journal of Medical Systems, and International Journal of Energy Management Sector. He is in the editorial board of several international journals and co-founder of Performance Improvement Management Software. William Ho is a Senior Lecturer at the Aston University Business School. Before joining Aston in 2005, he had worked as a Research Associate in the Department of Industrial and Systems Engineering at the Hong Kong Polytechnic University. His research interests include supply chain management, production and operations management, and operations research. He has published extensively in various international journals like Computers & Operations Research, Engineering Applications of Artificial Intelligence, European Journal of Operational Research, Expert Systems with Applications, International Journal of Production Economics, International Journal of Production Research, Supply Chain Management: An International Journal, and so on. His first authored book was published in 2006. He is an Editorial Board member of the International Journal of Advanced Manufacturing Technology and an Associate Editor of the OR Insight Journal. Currently, he is a Scholar of the Advanced Institute of Management Research. Uses of frontier efficiency methodologies and multi-criteria decision making for performance measurement in the energy sector This special issue aims to focus on holistic, applied research on performance measurement in energy sector management and for publication of relevant applied research to bridge the gap between industry and academia. After a rigorous refereeing process, seven papers were included in this special issue. The volume opens with five data envelopment analysis (DEA)-based papers. Wu et al. apply the DEA-based Malmquist index to evaluate the changes in relative efficiency and the total factor productivity of coal-fired electricity generation of 30 Chinese administrative regions from 1999 to 2007. Factors considered in the model include fuel consumption, labor, capital, sulphur dioxide emissions, and electricity generated. The authors reveal that the east provinces were relatively and technically more efficient, whereas the west provinces had the highest growth rate in the period studied. Ioannis E. Tsolas applies the DEA approach to assess the performance of Greek fossil fuel-fired power stations taking undesirable outputs into consideration, such as carbon dioxide and sulphur dioxide emissions. In addition, the bootstrapping approach is deployed to address the uncertainty surrounding DEA point estimates, and provide bias-corrected estimations and confidence intervals for the point estimates. The author revealed from the sample that the non-lignite-fired stations are on an average more efficient than the lignite-fired stations. Maethee Mekaroonreung and Andrew L. Johnson compare the relative performance of three DEA-based measures, which estimate production frontiers and evaluate the relative efficiency of 113 US petroleum refineries while considering undesirable outputs. Three inputs (capital, energy consumption, and crude oil consumption), two desirable outputs (gasoline and distillate generation), and an undesirable output (toxic release) are considered in the DEA models. The authors discover that refineries in the Rocky Mountain region performed the best, and about 60 percent of oil refineries in the sample could improve their efficiencies further. H. Omrani, A. Azadeh, S. F. Ghaderi, and S. Abdollahzadeh presented an integrated approach, combining DEA, corrected ordinary least squares (COLS), and principal component analysis (PCA) methods, to calculate the relative efficiency scores of 26 Iranian electricity distribution units from 2003 to 2006. Specifically, both DEA and COLS are used to check three internal consistency conditions, whereas PCA is used to verify and validate the final ranking results of either DEA (consistency) or DEA-COLS (non-consistency). Three inputs (network length, transformer capacity, and number of employees) and two outputs (number of customers and total electricity sales) are considered in the model. Virendra Ajodhia applied three DEA-based models to evaluate the relative performance of 20 electricity distribution firms from the UK and the Netherlands. The first model is a traditional DEA model for analyzing cost-only efficiency. The second model includes (inverse) quality by modelling total customer minutes lost as an input data. The third model is based on the idea of using total social costs, including the firm’s private costs and the interruption costs incurred by consumers, as an input. Both energy-delivered and number of consumers are treated as the outputs in the models. After five DEA papers, Stelios Grafakos, Alexandros Flamos, Vlasis Oikonomou, and D. Zevgolis presented a multiple criteria analysis weighting approach to evaluate the energy and climate policy. The proposed approach is akin to the analytic hierarchy process, which consists of pairwise comparisons, consistency verification, and criteria prioritization. In the approach, stakeholders and experts in the energy policy field are incorporated in the evaluation process by providing an interactive mean with verbal, numerical, and visual representation of their preferences. A total of 14 evaluation criteria were considered and classified into four objectives, such as climate change mitigation, energy effectiveness, socioeconomic, and competitiveness and technology. Finally, Borge Hess applied the stochastic frontier analysis approach to analyze the impact of various business strategies, including acquisition, holding structures, and joint ventures, on a firm’s efficiency within a sample of 47 natural gas transmission pipelines in the USA from 1996 to 2005. The author finds that there were no significant changes in the firm’s efficiency by an acquisition, and there is a weak evidence for efficiency improvements caused by the new shareholder. Besides, the author discovers that parent companies appear not to influence a subsidiary’s efficiency positively. In addition, the analysis shows a negative impact of a joint venture on technical efficiency of the pipeline company. To conclude, we are grateful to all the authors for their contribution, and all the reviewers for their constructive comments, which made this special issue possible. We hope that this issue would contribute significantly to performance improvement of the energy sector.

Introducing International Accounting Standards to an emerging capital market:Relative familiarity and language effect in Egypt

The purpose of this study is to assess the effect of relative familiarity and language accessibility on the International Accounting Standards (IASs) disclosures when IASs are first introduced in an emerging capital market. The study focuses on the annual reports of listed non-financial companies in Egypt when IASs were first introduced. The method used applies a disclosure index measurement to a sample of listed company annual reports and evaluates relative compliance with IASs in relation to corporate characteristics. The results show that for relatively less familiar requirements of IASs, the extent of compliance is related to the type of audit firm used and to the presence of a specific statement of compliance with IASs. A lower degree of compliance with less familiar IASs disclosure is observed consistently across a range of company characteristics. Consideration of agency theory and capital need theory would lead to prior expectation of a distinction in disclosure practices between different categories of companies. The results were, therefore, counterintuitive to expectations where the regulations were unfamiliar or not available in the native language, indicating that new variables have to be considered and additional theoretical explanations have to be found in future disclosure studies on emerging capital markets. © 2003 Elsevier Science Inc. All rights reserved.

Trigeneration using biomass energy for sustainable development

Purpose: The paper aims to design and prove the concept of micro-industry using trigeneration fuelled by biomass, for sustainable development in rural NW India. Design/methodology/approach: This is being tested at village Malunga, near Jodhpur in Rajasthan. The system components comprise burning of waste biomass for steam generation and its use for power generation, cooling system for fruit ripening and the use of steam for producing distilled water. Site was selected taking into account the local economic and social needs, biomass resources available from agricultural activities, and the presence of a NGO which is competent to facilitate running of the enterprise. The trigeneration system was designed to integrate off-the-shelf equipment for power generation using boilers of approximate total capacity 1 tonne of fuel per hour, and a back-pressure steam turbo-generator (200 kW). Cooling is provided by a vapour absorption machine (VAM). Findings: The financial analysis indicates a payback time of less than two years. Nevertheless, this is sensitive to market fluctuations and availabilities of raw materials. Originality/value: Although comparable trigeneration systems already exist in large food processing industries and in space heating and cooling applications, they have not previously been used for rural micro-industry. The small-scale (1-2 m3/h output) multiple effect distillation (3 effect plus condenser) unit has not previously been deployed at field level. © Emerald Group Publishing Limited.

Competition, agency and productivity

This article tests a set of hypotheses relating to agency and Schumpeterian views on how competition affects performance. A survey data set of Australian workplaces is used, with the change in labour productivity as the dependent variable. The results show strong support for the idea that intense competition raises productivity growth in managerial workplaces, but not in non-managerial workplaces (i.e. where the principal owner also works). Testing the agency theories in more detail, we find no evidence that the number of competitors, the price elasticity of demand or a proxy for bankruptcy (pre-tax losses) are the mechanisms behind the process. For non-managerial workplaces the results indicate support for the idea that greater demand uncertainty reduces productivity growth. In contrast, for managerial workplaces, greater demand uncertainty tends to raise productivity growth.

Oil bearing seasonal crops in India:energy and phytoremediation potential

Purpose: A variety of biomass plantations are being raised for energy production. This case study is on energy production potential of seasonal oil bearing crops in India. These crops have the advantage of producing oil (liquid fuel) as well as biomass as agro residue (solid fuel). The purpose of the study is to estimate total energy yields of oil bearing crops and compare with other types of energy plantations. Also oil bearing crops bioaccumulate metals and thus phytoremediate soil. This provides scope for waste water irrigation. Design/methodology/approach: Relevant published papers on energy production by raising oil bearing crops have been analyzed. The effect of waste water irrigation and agronomic practices on increasing productivity is given special attention. Findings: It is shown that the seasonal oil bearing crops such as castor have a high potential to generate energy and this is comparable to energy produced by many perennial grasses. The energy yields of castor under irrigated condition was 196×103 MJ/ha and this is comparable to the reed canary grass which yields 195×103 MJ/ha. Some of the oil bearing crops are also super accumulators of certain toxic metals. Research limitations/implications: In this study, only all the accessible papers on the topic could be analyzed. Practical implications: This case study indicates that raising oil bearing crops such as castor using waste water has many advantages which include high energy yields, utilization of waste water for productive purpose and phytoremediation of soil. Originality/value: The comparison made between various types of energy crops for their energy generation is an original contribution. Findings of economic and environmental benefits by waste water irrigation are also of value. © Emerald Group Publishing Limited.

Energy efficient transmission protocol for distributed source coding in sensor networks

Distributed source coding (DSC) has recently been considered as an efficient approach to data compression in wireless sensor networks (WSN). Using this coding method multiple sensor nodes compress their correlated observations without inter-node communications. Therefore energy and bandwidth can be efficiently saved. In this paper, we investigate a randombinning based DSC scheme for remote source estimation in WSN and its performance of estimated signal to distortion ratio (SDR). With the introduction of a detailed power consumption model for wireless sensor communications, we quantitatively analyze the overall network energy consumption of the DSC scheme. We further propose a novel energy-aware transmission protocol for the DSC scheme, which flexibly optimizes the DSC performance in terms of either SDR or energy consumption, by adapting the source coding and transmission parameters to the network conditions. Simulations validate the energy efficiency of the proposed adaptive transmission protocol. © 2007 IEEE.

Energy hole mitigation through cooperative transmission in wireless sensor networks

The energy balancing capability of cooperative communication is utilized to solve the energy hole problem in wireless sensor networks. We first propose a cooperative transmission strategy, where intermediate nodes participate in two cooperative multi-input single-output (MISO) transmissions with the node at the previous hop and a selected node at the next hop, respectively. Then, we study the optimization problems for power allocation of the cooperative transmission strategy by examining two different approaches: network lifetime maximization (NLM) and energy consumption minimization (ECM). For NLM, the numerical optimal solution is derived and a searching algorithm for suboptimal solution is provided when the optimal solution does not exist. For ECM, a closed-form solution is obtained. Numerical and simulation results show that both the approaches have much longer network lifetime than SISO transmission strategies and other cooperative communication schemes. Moreover, NLM which features energy balancing outperforms ECM which focuses on energy efficiency, in the network lifetime sense.

Second life battery energy storage systems:converter topology and redundancy selection

Battery energy storage systems have traditionally been manufactured using new batteries with a good reliability. The high cost of such a system has led to investigations of using second life transportation batteries to provide an alternative energy storage capability. However, the reliability and performance of these batteries is unclear and multi-modular power electronics with redundancy have been suggested as a means of helping with this issue. This paper reviews work already undertaken on battery failure rate to suggest suitable figures for use in reliability calculations. The paper then uses reliability analysis and a numerical example to investigate six different multi-modular topologies and suggests how the number of series battery strings and power electronic module redundancy should be determined for the lowest hardware cost using a numerical example. The results reveal that the cascaded dc-side modular with single inverter is the lowest cost solution for a range of battery failure rates.

Sizing energy storage on the 11kV distribution network

The cost and limited flexibility of traditional approaches to 11kV network reinforcement threatens to constrain the uptake of low carbon technologies. Ofgem has released £500m of funding for DNOs to trial innovative techniques and share the learning with the rest of the industry. One of the techniques under study is the addition of Energy Storage at key substations to the network to help with peak load lopping. This paper looks in detail at the sizing algorithm for use in the assessment of alternatives to traditional reinforcement and investigates a method of sizing a battery for use on a Network taking into account load growth, capacity fade and battery lifecycle issues. A further complication to the analysis is the method of operation of the battery system and how this affects the Depth of Discharge (DoD). The proposed method is being trialled on an area of 11kV network in Milton Keynes Central area and the simulation results are presented in this paper.

Analysis and design of power management scheme for an on-board solar energy storage system

This paper investigates the power management issues in a mobile solar energy storage system. A multi-converter based energy storage system is proposed, in which solar power is the primary source while the grid or the diesel generator is selected as the secondary source. The existence of the secondary source facilitates the battery state of charge detection by providing a constant battery charging current. Converter modeling, multi-converter control system design, digital implementation and experimental verification are introduced and discussed in details. The prototype experiment indicates that the converter system can provide a constant charging current during solar converter maximum power tracking operation, especially during large solar power output variation, which proves the feasibility of the proposed design. © 2014 IEEE.

An intelligent broker agent for energy trading:an MDP approach

This paper details the development and evaluation of AstonTAC, an energy broker that successfully participated in the 2012 Power Trading Agent Competition (Power TAC). AstonTAC buys electrical energy from the wholesale market and sells it in the retail market. The main focus of the paper is on the broker’s bidding strategy in the wholesale market. In particular, it employs Markov Decision Processes (MDP) to purchase energy at low prices in a day-ahead power wholesale market, and keeps energy supply and demand balanced. Moreover, we explain how the agent uses Non-Homogeneous Hidden Markov Model (NHHMM) to forecast energy demand and price. An evaluation and analysis of the 2012 Power TAC finals show that AstonTAC is the only agent that can buy energy at low price in the wholesale market and keep energy imbalance low.

Impact of driver behaviour on availability of electric vehicle stored energy for STOR

As take up of low carbon vehicles increase, there is interest in using the energy stored in the vehicles to help maintain system frequency through ancillary services on the electricity grid system. Research into this area is generally classed as vehicle-to-grid research. In theory, the energy available from electric vehicles could be directly correlated to the vehicle's state of charge (SoC) and battery capacity during the time the car is parked and plugged in. However, not all the energy in the vehicle may be used, as some capacity is required by the driver for their next journey. As such, this paper uses data captured as part of a large scale electric vehicle trial to investigate the effect of three different types of driver routine on vehicle-to-grid availability. Each driver's behaviour is analysed to assess the energy that is available for STOR, with follow on journey requirements also considered.

Engaging autobiography:mobility trauma and international relations

This article outlines the possibilities of autobiographical stories to criticize status quo iterations of International Relations (IR). The article draws on the personal experiences of the author’s deportation order issued by the United Kingdom’s Home Office and its associated Border Agency (UKBA) to challenge the accepted assumptions of a cosmopolitan worldview as it relates to orderly international institutional design. It highlights the possibilities of trauma when border management and personal mobility collide. It suggests that mobility trauma ensues when the expectations of human mobility, outlined in Article 13 of the Universal Declaration of Human Rights, infringe the state’s role as security provider. It begins in part one with a challenge to the traditional role and understanding of international borders that sustain order within the international. It examines the unacknowledged role that human vulnerability plays within IR and institutional design while frankly engaging with human vulnerability and trauma in the second section. This section details the experiences of the author when her mobility rights were curtailed and the ensuing identity crisis prompted by such events. The final section investigates the ideas of critical cosmopolitan scholarship demanding that such discourses acknowledge and work through the possibility of failed agency when the demands of state security supersede individual mobility rights. It turns to the possibility of traumatic iterations of IR in order to probe such possibilities. The article suggests, in its conclusion, the possibility of storytelling and psychoanalysis to endorse unorthodox agency, and the possibility of a dynamic international institutional design, that challenges the status quo iterations of IR.

Uncovering North Korea's energy security dilemma:past policies, present choices, future opportunities

Over the past two decades, the Democratic People's Republic of Korea has allegedly developed nuclear energy while suffering near collapse caused by catastrophic economic policies. This article presents an evaluation of North Korea's contemporary energy policies and suggests that despite retaining communist ideals and "Chu'che" policies, North Korea has slowly started to modernise its energy sector and recognises the necessity to start engaging with the international community. While it is argued that Pyongyang's newfound concerns for sustainable development, equity and the environment are a welcomed departure from its usual belligerent rhetoric and present a number of exciting engagement opportunities, the regime has not abandoned its nuclear energy programme.