Accounting for the Life Cycle Cost of Power Grid Projects by Employing a System Dynamics Technique: A Power Reform Perspective

Yongli Wang, Shanshan Song, Mingchen Gao, Jingyan Wang, Jinrong Zhu and Zhongfu Tan
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Yongli Wang: State Key Laboratory for Alternate Electrical Power System with Renewable Energy Sources, Beijing 102206, China
Shanshan Song: State Key Laboratory for Alternate Electrical Power System with Renewable Energy Sources, Beijing 102206, China
Mingchen Gao: State Key Laboratory for Alternate Electrical Power System with Renewable Energy Sources, Beijing 102206, China
Jingyan Wang: State Key Laboratory for Alternate Electrical Power System with Renewable Energy Sources, Beijing 102206, China
Jinrong Zhu: State Key Laboratory for Alternate Electrical Power System with Renewable Energy Sources, Beijing 102206, China
Zhongfu Tan: State Key Laboratory for Alternate Electrical Power System with Renewable Energy Sources, Beijing 102206, China

Sustainability, 2020, vol. 12, issue 8, 1-28

Abstract: In the context of China’s electric power reform, issued in May 2019, the “Transmission and Distribution Pricing Supervision Measures” have changed asset accounting in grid enterprises and therefore affected cost accounting in grid projects. This paper proposes a dynamic cost calculation model based on system dynamics and takes a power grid company as an example. On this basis, a sensitivity analysis of power grid engineering was conducted to determine the impacts of key factors of power reform on life cycle cost (LCC). Finally, suggestions for cost accounting and cost management were proposed.

Keywords: power reform; system dynamics; life cycle cost (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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