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Ensuring Robust Flood Risk Management in Ho Chi Minh City
Authors: --- --- --- --- --- et al.
Year: 2013 Publisher: Washington, D.C., The World Bank,

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Ho Chi Minh City faces significant and growing flood risk. Recent risk reduction efforts may be insufficient as climate and socio-economic conditions diverge from projections made when those efforts were initially planned. This study demonstrates how robust decision making can help Ho Chi Minh City develop integrated flood risk management strategies in the face of such deep uncertainty. Robust decision making is an iterative, quantitative, decision support methodology designed to help policy makers identify strategies that are robust, that is, satisfying decision makers' objectives in many plausible futures, rather than being optimal in any single estimate of the future. This project used robust decision making to analyze flood risk management in Ho Chi Minh City's Nhieu Loc-Thi Nghe canal catchment area. It found that the soon-to-be-completed infrastructure may reduce risk in best estimates of future conditions, but it may not keep risk low in many other plausible futures. Thus, the infrastructure may not be sufficiently robust. The analysis further suggests that adaptation and retreat measures, particularly when used adaptively, can play an important role in reducing this risk. The study examines the conditions under which robust decision making concepts and full robust decision making analyses may prove useful in developing countries. It finds that planning efforts in developing countries should at minimum use models and data to evaluate their decisions under a wide range of conditions. Full robust decision making analyses can also augment existing planning efforts in numerous ways.


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Investment Decision Making under Deep Uncertainty : Application to Climate Change
Authors: --- --- --- ---
Year: 2012 Publisher: Washington, D.C., The World Bank,

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While agreeing on the choice of an optimal investment decision is already difficult for any diverse group of actors, priorities, and world views, the presence of deep uncertainties further challenges the decision-making framework by questioning the robustness of all purportedly optimal solutions. This paper summarizes the additional uncertainty that is created by climate change, and reviews the tools that are available to project climate change (including downscaling techniques) and to assess and quantify the corresponding uncertainty. Assuming that climate change and other deep uncertainties cannot be eliminated over the short term (and probably even over the longer term), it then summarizes existing decision-making methodologies that are able to deal with climate-related uncertainty, namely cost-benefit analysis under uncertainty, cost-benefit analysis with real options, robust decision making, and climate informed decision analysis. It also provides examples of applications of these methodologies, highlighting their pros and cons and their domain of applicability. The paper concludes that it is impossible to define the "best" solution or to prescribe any particular methodology in general. Instead, a menu of methodologies is required, together with some indications on which strategies are most appropriate in which contexts. This analysis is based on a set of interviews with decision-makers, in particular World Bank project leaders, and on a literature review on decision-making under uncertainty. It aims at helping decision-makers identify which method is more appropriate in a given context, as a function of the project's lifetime, cost, and vulnerability.


Book
Providing Policy Makers with Timely Advice : The Timeliness-Rigor Trade-off
Authors: ---
Year: 2016 Publisher: Washington, D.C. : The World Bank,

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Policy makers bemoan the lack of research findings to guide urgent decisions, whereas researchers' professional code puts rigor first. This article argues that provisional assessments, produced early in the research cycle, can bridge the gap. Numerous case studies point to the importance of early interaction with policy makers and the delivery of brief, policy-focused papers; but preliminary analyses may be flawed and so increase the chances of a wrong decision. This article emonstrates analytically that a preliminary assessment, supported by the offer of more refined research, provides an option that is superior, on average, to the current practice of submitting a final report at the end of the research cycle. Where practical implementation is concerned, it calls for donor-funded subsidies to promote the use of provisional assessments and for a rapid, independent, professional review process to ensure their quality. While the research-policy exchange in developing countries is a complex, context-specific phenomenon, the proposal offered here holds out some promise of improving decisions in the public sphere under a wide range of circumstances.


Book
Decision analysis for managers : a guide for making better personal and business decisions
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ISBN: 1299355986 1606494899 Year: 2013 Publisher: [New York, N.Y.] (222 East 46th Street, New York, NY 10017) : Business Expert Press,

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Everybody has to make decisions--they are unavoidable. Yet we receive little or no education or training on how to make decisions. Business decisions can be difficult: which people to hire, which product lines or facilities to expand and which to sell or shut down, which bid or proposal to accept, which process to implement, how much R&D to invest in, which environmental projects should receive the highest priority, and so on. Even if you make the correct decision, you still have to get buy-in and commitment from your team, other management, and key stakeholders to successfully implement the decision. Personal decisions can be even more difficult: which college to attend, who to date, who to marry, which automobile to buy, which house to buy, whether to change jobs or not, where to go on vacation, when and where to retire, how to handle and treat a serious illness or health problem, and so on. Decision analysis (DA) is a time-tested set of tools (mental frameworks) which will help you and the teams you work with clarify and reach alignment on goals and objectives and understand trade-offs in reaching those goals, develop and examine alternatives, systematically analyze the effects of risk and uncertainty, and maximize the chances of achieving your goals and objectives.


Book
Agreeing on Robust Decisions : New Processes for Decision Making under Deep Uncertainty
Authors: --- --- --- --- --- et al.
Year: 2014 Publisher: Washington, D.C., The World Bank,

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Investment decision making is already difficult for any diverse group of actors with different priorities and views. But the presence of deep uncertainties linked to climate change and other future conditions further challenges decision making by questioning the robustness of all purportedly optimal solutions. While decision makers can continue to use the decision metrics they have used in the past (such as net present value), alternative methodologies can improve decision processes, especially those that lead with analysis and end in agreement on decisions. Such "Agree-on-Decision" methods start by stress-testing options under a wide range of plausible conditions, without requiring us to agree ex ante on which conditions are more or less likely, and against a set of objectives or success metrics, without requiring us to agree ex ante on how to aggregate or weight them. As a result, these methods are easier to apply to contexts of large uncertainty or disagreement on values and objectives. This inverted process promotes consensus around better decisions and can help in managing uncertainty. Analyses performed in this way let decision makers make the decision and inform them on (1) the conditions under which an option or project is vulnerable; (2) the tradeoffs between robustness and cost, or between various objectives; and (3) the flexibility of various options to respond to changes in the future. In doing so, they put decision makers back in the driver's seat. A growing set of case studies shows that these methods can be applied in real-world contexts and do not need to be more costly or complicated than traditional approaches. Finally, while this paper focuses on climate change, a better treatment of uncertainties and disagreement would in general improve decision making and development outcomes.


Book
Making Informed Investment Decisions in an Uncertain World : A Short Demonstration
Authors: ---
Year: 2014 Publisher: Washington, D.C., The World Bank,

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Governments invest billions of dollars annually in long-term projects. Yet deep uncertainties pose formidable challenges to making near-term decisions that make long-term sense. Methods that identify robust decisions have been recommended for investment lending but are not widely used. This paper seeks to help bridge this gap and, with a demonstration, motivate and equip analysts better to manage uncertainty in investment decisions. The paper first reviews the economic analysis of ten World Bank projects. It finds that analysts seek to manage uncertainty but use traditional approaches that do not evaluate options over the full range of possible futures. Second, the paper applies a different approach, Robust Decision Making, to the economic analysis of a 2006 World Bank project, the Electricity Generation Rehabilitation and Restructuring Project, which sought to improve Turkey's energy security. The analysis shows that Robust Decision Making can help decision makers answer specific and useful questions: How do options perform across a wide range of potential future conditions? Under what specific conditions does the leading option fail to meet decision makers' goals? Are those conditions sufficiently likely that decision makers should choose a different option? Such knowledge informs rather than replaces decision makers' deliberations. It can help them systematically, rigorously, and transparently compare their options and select one that is robust. Moreover, the paper demonstrates that analysts can use the same data and models for Robust Decision Making as are typically used in economic analyses. Finally, the paper discusses the challenges in applying such methods and how they can be overcome.


Book
Distributed Energy Resources Management
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Year: 2019 Publisher: MDPI - Multidisciplinary Digital Publishing Institute

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At present, the impact of distributed energy resources in the operation of power and energy systems is unquestionable at the distribution level, but also at the whole power system management level. Increased flexibility is required to accommodate intermittent distributed generation and electric vehicle charging. Demand response has already been proven to have a great potential to contribute to an increased system efficiency while bringing additional benefits, especially to the consumers. Distributed storage is also promising, e.g., when jointly used with the currently increasing use of photovoltaic panels. This book addresses the management of distributed energy resources. The focus includes methods and techniques to achieve an optimized operation, to aggregate the resources, namely, by virtual power players, and to remunerate them. The integration of distributed resources in electricity markets is also addressed as a main drive for their efficient use.


Book
Distributed Energy Resources Management
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Year: 2019 Publisher: MDPI - Multidisciplinary Digital Publishing Institute

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At present, the impact of distributed energy resources in the operation of power and energy systems is unquestionable at the distribution level, but also at the whole power system management level. Increased flexibility is required to accommodate intermittent distributed generation and electric vehicle charging. Demand response has already been proven to have a great potential to contribute to an increased system efficiency while bringing additional benefits, especially to the consumers. Distributed storage is also promising, e.g., when jointly used with the currently increasing use of photovoltaic panels. This book addresses the management of distributed energy resources. The focus includes methods and techniques to achieve an optimized operation, to aggregate the resources, namely, by virtual power players, and to remunerate them. The integration of distributed resources in electricity markets is also addressed as a main drive for their efficient use.


Book
Distributed Energy Resources Management
Author:
Year: 2019 Publisher: MDPI - Multidisciplinary Digital Publishing Institute

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Abstract

At present, the impact of distributed energy resources in the operation of power and energy systems is unquestionable at the distribution level, but also at the whole power system management level. Increased flexibility is required to accommodate intermittent distributed generation and electric vehicle charging. Demand response has already been proven to have a great potential to contribute to an increased system efficiency while bringing additional benefits, especially to the consumers. Distributed storage is also promising, e.g., when jointly used with the currently increasing use of photovoltaic panels. This book addresses the management of distributed energy resources. The focus includes methods and techniques to achieve an optimized operation, to aggregate the resources, namely, by virtual power players, and to remunerate them. The integration of distributed resources in electricity markets is also addressed as a main drive for their efficient use.

Keywords

autonomous operation --- energy management system --- stochastic programming --- co-generation --- Unit Commitment (UC) --- distributed system --- demand-side energy management --- virtual power plant --- Powell direction acceleration method --- average consensus algorithm (ACA) --- transmission line --- interval optimization --- renewable energy --- microgrids --- scheduling --- business model --- non-cooperative game (NCG) --- domestic energy management system --- time series --- energy trading --- decision-making under uncertainty --- Demand Response Unit Commitment (DRUC) --- real-time simulation --- distributed generation --- discrete wavelet transformer --- microgrid (MG) --- probabilistic programming --- optimal bidding --- ac/dc hybrid microgrid --- building energy flexibility --- storage --- uncertainty --- Cat Swarm Optimization (CSO) --- advance and retreat method --- multiplier method --- microgrid --- Demand Response (DR) --- electricity markets --- aggregators --- fault localization --- aggregator --- consensus algorithm --- black start --- microgrid operation --- local controller --- thermal comfort --- diffusion strategy --- optimal operation --- power system restoration (PSR) --- energy flexibility --- ARIMA --- pricing strategy --- clustering --- adaptive droop control --- multi-agent system (MAS) --- hierarchical game --- energy flexibility potential --- demand response --- autonomous operation --- energy management system --- stochastic programming --- co-generation --- Unit Commitment (UC) --- distributed system --- demand-side energy management --- virtual power plant --- Powell direction acceleration method --- average consensus algorithm (ACA) --- transmission line --- interval optimization --- renewable energy --- microgrids --- scheduling --- business model --- non-cooperative game (NCG) --- domestic energy management system --- time series --- energy trading --- decision-making under uncertainty --- Demand Response Unit Commitment (DRUC) --- real-time simulation --- distributed generation --- discrete wavelet transformer --- microgrid (MG) --- probabilistic programming --- optimal bidding --- ac/dc hybrid microgrid --- building energy flexibility --- storage --- uncertainty --- Cat Swarm Optimization (CSO) --- advance and retreat method --- multiplier method --- microgrid --- Demand Response (DR) --- electricity markets --- aggregators --- fault localization --- aggregator --- consensus algorithm --- black start --- microgrid operation --- local controller --- thermal comfort --- diffusion strategy --- optimal operation --- power system restoration (PSR) --- energy flexibility --- ARIMA --- pricing strategy --- clustering --- adaptive droop control --- multi-agent system (MAS) --- hierarchical game --- energy flexibility potential --- demand response

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