The optimization of Chinese power grid investment based on transmission and distribution tariff policy: A system dynamics approach

He, Yanmin; Jiao, Jie; Chen, R.J.; Hui, S.Y.R.

doi:10.1016/j.enpol.2017.10.062

Cited by 53 publications

(22 citation statements)

References 17 publications

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“…However, the efficiency of investment in the electric power industry, especially in PGEs, has not received its deserved attention. He et al [3] studied the impact of transmission and distribution price policy on the development of China's power market and PGEs. Based on the theory of system dynamics, they put forward policy suggestions for the investment plans and investment capabilities of PGEs.…”

Section: Introductionmentioning

confidence: 99%

Evaluating the Investment Efficiency of China’s Provincial Power Grid Enterprises under New Electricity Market Reform: Empirical Evidence Based on Three-Stage DEA Model

et al. 2019

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The new round of electricity market reform in 2015 completely changed the profit pattern of power grid enterprises (PGEs) in China, and directly affected their investment plans. Under the new electricity market reform (NEMR), the government regulatory authority made higher requirements for the investment efficiency of PGEs, and the investment effectiveness hence became the core criterion for investment plans. Therefore, the PGEs are now attaching great importance to the investment efficiency. According to their geographical differences, this paper divides the Chinese provincial PGEs into three groups, namely eastern, central and western region enterprises. Based on the NEMR, we developed an evaluation system of investment efficiency for the above-mentioned enterprises. Moreover, this paper selects GDP per capita, electricity consumption in industry, and electrification rate as external environment variables, and conducts an empirical research on the investment efficiency of 31 provincial PGEs in China in 2017. The analysis reveals that three external environment variables have considerable impacts on the investment efficiency. Though the increase of GDP per capita and electricity consumption in industry are not conducive to improving investment efficiency, the advancement of electrification plays a positive role in its improvement. And from the real efficiency results, Tianjin, Liaoning, Jiangsu, and Fujian have relatively higher investment efficiency, while Henan, Shandong, and Shanghai exhibit lower investment efficiency. By comparing the investment efficiency of PGEs in the first and third stage, conclusions can be drawn that in the first stage the investment efficiency of PGEs was overestimated, and the inefficient investments prevailed some provincial PGEs, which caused by low scale efficiency.

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Section: Introductionmentioning

confidence: 99%

Evaluating the Investment Efficiency of China’s Provincial Power Grid Enterprises under New Electricity Market Reform: Empirical Evidence Based on Three-Stage DEA Model

et al. 2019

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“…For example, if j * = 2.3, it shows that the business risk of electricity retail company belongs to 'Medium' grade but closer to the 'Low' grade more; if j * = 2.8, it indicates that the business risk of electricity retail company belongs to 'Medium' grade but closer to the 'High' grade more. In this paper, j * = 3.5388 ∈ (3,4), so the current business risk of electricity retail company in China belongs to 'High' grade and closer to the 'Very High' grade more.…”

Section: Rank Business Risk Evaluation Grade Of Electricity Retail Comentioning

confidence: 97%

“…The value j * represents the attributive degree of business risk of electricity retail company tending to adjacent risk evaluation grade. In this paper, we use j * ∈ (0, 1), (1,2), (2,3), (3,4), and (4,5) to respectively represent the business risk grades VL, L, M, H, VH of electricity retail company. For example, if j * = 2.3, it shows that the business risk of electricity retail company belongs to 'Medium' grade but closer to the 'Low' grade more; if j * = 2.8, it indicates that the business risk of electricity retail company belongs to 'Medium' grade but closer to the 'High' grade more.…”

Section: Rank Business Risk Evaluation Grade Of Electricity Retail Comentioning

confidence: 99%

“…Market-oriented operation is the main direction of electricity industry reform and development in the world [1,2]. In 2015, a new-round marketization reform of electricity industry was carried out in China [3], which put forward several kinds of reform, such as electricity transmission and distribution pricing, electric power market construction, electric power trading institution establishment, and electricity retail side deregulation [2,4,5]. With the deepening of marketization reform of the electricity industry, the business models of electricity generation side, electricity transmission & distribution side, and electricity retail side will change largely.…”

Section: Introductionmentioning

confidence: 99%

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Business Risk Evaluation of Electricity Retail Company in China Using a Hybrid MCDM Method

2020

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Electricity retail marketization reform is in progress in China, and many electricity retail companies (ERC) have been founded. The comprehensive evaluation of business risk for ERC can help effectively manage business risk and reduce risk loss, which is vital for its healthy and sustainable development. In this paper, a new hybrid multi-criteria decision making (MCDM) method integrating the Bayesian best-worst method (BBWM) and improved matter-element extension model (IMEEM) is proposed for business risk evaluation for an ERC. The latest group MCDM method, namely the BBWM is employed to determine risk criteria weights, and the IMEEM is used to rank the business risk of ERC. The evaluation index system is built including three aspects of economic operation risk, marketable risk and political risk. The business risk of ERC in China is evaluated by using the proposed MCDM method, and the result shows the current business risk belongs to ‘High’ grade and closer to ‘Very High’ grade more. The proposed MCDM method for business risk evaluation of ERC is effective and practical, which can provide references for risk management and sustainable development of ERC.

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“…According to Kelly et al [87], five modelling approaches are most commonly used for integrated environmental assessment and management. Each of these approaches has been used for modelling complex systems: system dynamics [88,89], Bayesian networks [90,91], coupled component models [92], agent-based models [93,94], and knowledgebased models [95]. In additional to the summary of these approaches (see Tables 1 and 3 in [87]), Kelly et al [87] provided a heuristic for selection of one of these approaches under standard application (see Figure 1 in [87]).…”

Section: Simulation Modellingmentioning

confidence: 99%

A Resilience Toolbox and Research Design for Black Sky Hazards to Power Grids

Borisoglebsky

Varga

2019

Complexity

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A structured collection of tools for engineering resilience and a research approach to improve the resilience of a power grid are described in this paper. The collection is organized by a two-dimensional array formed from typologies of power grid components and business processes. These two dimensions provide physical and operational outlooks, respectively, for a power grid. The approach for resilience research is based on building a simulation model of a power grid which utilizes a resilience assessment equation to assess baseline resilience to a hazards’ profile, then iteratively selects a subset of tools from the collection, and introduces these as interventions in the power grid simulation model. Calculating the difference in resilience associated with each subset supports multicriteria decision-making to find the most convenient subset of interventions for a power grid and hazards’ profile. Resilience is an emergent quality of a power grid system, and therefore resilience research and interventions must be system-driven. This paper outlines further research required prior to the practical application of this approach.

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The optimization of Chinese power grid investment based on transmission and distribution tariff policy: A system dynamics approach

Cited by 53 publications

References 17 publications

Evaluating the Investment Efficiency of China’s Provincial Power Grid Enterprises under New Electricity Market Reform: Empirical Evidence Based on Three-Stage DEA Model

Evaluating the Investment Efficiency of China’s Provincial Power Grid Enterprises under New Electricity Market Reform: Empirical Evidence Based on Three-Stage DEA Model

Business Risk Evaluation of Electricity Retail Company in China Using a Hybrid MCDM Method

A Resilience Toolbox and Research Design for Black Sky Hazards to Power Grids

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