Application of multi criteria analysis in the design of energy policy: Space and water heating in households – City Novi Sad, Serbia

Highlights: • Residency sector of Serbia is one of the largest consumers of energy. • Initial screening indicates the need to design policies measures to support RES. • The problem has a multi-criteria profile, and it requires the use of the PROMETHEE. • The analysis suggests that we should pay special attention to operational costs. • The market environment directly affects the success of designed policy/measures. - Abstract: The Republic of Serbia has taken important commitments to increase the participation of renewable energy sources in meeting energy needs. Significant part of final energy consumption i.e. 36,93% is realized in the residential sector. A multi-criteria analysis of local energy profile of the City of Novi Sad was carried out with the help of PROMETHEE (Preference Ranking Organization Method for Enriching Evaluation) methods. Initial screening of the energy problem will be used for assessing the needs of local introduction of instruments of support and their possible precisely designing. The model enables the aggregation of assessments which have quantitative character with those assessments that are based on qualitative criteria and transparent ranking of alternatives. It enables the analysis of secondary accompanying phenomena, which are caused by impact of proposed policies / measures. By the example of the application of price environment in Hungary, it was shown that local rates are more likely to succeed if they rely on already implemented reforms in the energy sector at the national level, which allows you to test situations in which there is a synergy of policies /measures at different levels.