Optimization study of grid business investment timing considering return on investment

Xinyuan Zheng, Jianfei Shen, Huanran Dong and Hao Liu

Finance Research Letters, 2025, vol. 80, issue C

Abstract: This study proposes an investment timing optimization technique that takes return on investment into account to implement the power grid company's long-term project investment decision. Firstly, the power grid business investment efficiency evaluation system is built. Secondly, a model of explanatory structure is constructed to explain how project investment and return affect power grid investment ability. Finally, a time-series optimization model that maximizes the total return on investment is developed using dynamic programming theory. The findings demonstrate that the timing optimization approach can successfully assist the power grid's long-term investment choice and raise the overall investment benefit by 14.37 %.

Keywords: Investment ability; Timing optimization; Project selection (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:80:y:2025:i:c:s1544612325006178

DOI: 10.1016/j.frl.2025.107356

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