Research on Grid Investment Effectiveness Assessment Methodology and Investment Strategy Optimization of Power Grid Companies

DOI

10.2991/978-94-6463-108-1_87How to use a DOI?

Keywords

Transmission and Distribution Tariff; Grid Investment; Power Demand; Investment Capacity

Abstract

As China's electricity transmission and distribution tariff reform deepens, power grid companies at the current stage are shifting from the idea of "high investment, heavy assets, and fast growth" to making a precise investment and ensuring its effectiveness. As the investment in power grids is characterized by a long investment cycle and payback period, and the investment decisions made during each regulatory cycle have an impact on the transmission and distribution tariff in both the current cycle and the future, the establishment of grid investment assessment methodology by power grid enterprises is significant for improving investment decisions. This paper first proposes an investment effectiveness assessment methodology and specific indicators based on an understanding of the power industry and financial economy. and examines how the investment plan is affected by the depreciation of effective fixed assets used in transmission and distribution pricing. Then, adopting the maximum principle, this paper designs and presents the flow chart for optimizing grid investment based on the primary constraints affecting the transmission and distribution tariff. The final section of this paper reviews and makes recommendations for grid companies’ future investments, including strengthening power grid construction, improving regulation capacity, enhancing intelligence level, raising grid interconnection standards for renewable energy, and so forth.

Copyright

© 2022 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Shengwei Lu
AU  - Jiong Yan
AU  - Zixia Sang
AU  - Sha Jin
PY  - 2022
DA  - 2022/12/30
TI  - Research on Grid Investment Effectiveness Assessment Methodology and Investment Strategy Optimization of Power Grid Companies
BT  - Proceedings of the 2022 International Conference on Computer Science, Information Engineering and Digital Economy (CSIEDE 2022)
PB  - Atlantis Press
SP  - 782
EP  - 791
SN  - 2352-538X
UR  - https://doi.org/10.2991/978-94-6463-108-1_87
DO  - 10.2991/978-94-6463-108-1_87
ID  - Lu2022
ER  -