KEYWORD: DSM; investment risk; Bayesian risk investment evaluation model; Entropy Weight method; Normalization method. ABSTRACT: The vigorous promotion of DSM is of great significance in improving energy conservation and power system reliability. At present, DSM technology of China has been developed, meanwhile, related projects will be carried out extensively. Therefore, investment risk evaluation for DSM projects of power enterprises is of significant urgency. To begin with we will provide investment risk evaluation system for DSM projects based on characteristics of power utilization in China. Secondly, the improved Bayesian risk investment evaluation model will be established. Compared with traditional Bayesian model, Entropy Weight method will be used to calculate the weight of every index. At the same time, Normalization method has been introduced to normalize the value of indices. Last but not least, analysis of examples is preceded to prove the practicality of the model in this paper and provide a reference for the DSM projects in power enterprises.
Evaluation systemAccording to the characteristics of power utilization in China, this paper has separated the benefits and costs of DSM projects into four categories: social benefits, power users, power grid enterprises and power generation enterprises. Based on the four categories, the investment risk evaluation system for DSM projects has been established as shown in Table1.