A Novel Hybrid Power-Grid Investment Optimization Model with Collaborative Consideration of Risk and Benefit

Changzheng Gao, Xiuna Wang, Dongwei Li, Chao Han, Weiyang You and Yihang Zhao ()
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Changzheng Gao: CEC Technical & Economic Consulting Center of Power Construction, Electric Power Development Research Institute Co., Ltd., Beijing 100053, China
Xiuna Wang: CEC Technical & Economic Consulting Center of Power Construction, Electric Power Development Research Institute Co., Ltd., Beijing 100053, China
Dongwei Li: CEC Technical & Economic Consulting Center of Power Construction, Electric Power Development Research Institute Co., Ltd., Beijing 100053, China
Chao Han: CEC Technical & Economic Consulting Center of Power Construction, Electric Power Development Research Institute Co., Ltd., Beijing 100053, China
Weiyang You: CEC Technical & Economic Consulting Center of Power Construction, Electric Power Development Research Institute Co., Ltd., Beijing 100053, China
Yihang Zhao: School of Economics and Management, North China Electric Power University, Beijing 102206, China

Energies, 2023, vol. 16, issue 20, 1-23

Abstract: Power-grid investment (PGI) optimization is crucial for boosting investment performance, lowering investment risks, and assuring the sustainable development of power-grid businesses. However, existing studies, which primarily concentrate on financial aspects, have not adequately considered the risk and benefit factors in the process of PGI. In this context, this research suggests a novel hybrid PGI optimization model that collaboratively accounts for the risks and benefits. In the first step, risk and benefit indicator systems for PGI are built, and a comprehensive evaluation model based on the Bayesian best–worst method and TOPSIS is suggested. In the second stage, a PGI optimization model considering the investment amount, power demand, and low-carbon restrictions is further developed based on the evaluation results. Furthermore, the incomprehensible but intelligible-in-time logic algorithm is adopted to solve the problem. By conducting an empirical analysis of ten projects within a power-grid company, the optimal investment plan and a differentiated investment portfolio strategy are obtained by adjusting the key elements.

Keywords: power-grid investment; investment risk; investment benefit; multi-criteria decision-making; optimization (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2023
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