Risk decision-making system for bidding of hydropower project based on entropy weight and Fuzzy—AHP method

In view of the multi-risk factor and the complexity of the decision-making during project bidding, a comprehensive risk evaluation index system for bidding of hydropower project is put forward. Based on the Analytic Hierarchy Process (AHP), the method uses triangle fuzzy numbers to establish judgment matrix, and then the entropy weight of the project to be tendered is obtained by fuzzy interval arithmetic in accordance with the confidence level sets and optimistic index; with which the appropriate project can be selected at last. Furthermore, the model is applied and verified through a case study, in which the evaluation results under different confidence levels and various risk appetites are simulated as well.