Research on Power Grid Enterprises’ Investment Strategies on Incremental Power Distribution Projects in China

Abstract

Abstract As the highlight of China’s new round of power reform, incremental power distribution reform has attract wide public attention. In order to adapt to the situation of reform, power grid enterprises need to develop investment strategies on the pilot projects, and determine the criteria for controlling, participating in or abandoning shares. This paper analyzes influencing factors for power grid enterprises’ investment decision, and build a investment-assisted decision-making model for incremental distribution reform. The investment-assisted decision-making model covers 5 dimensions of economic efficiency, project importance, development potential, government attitude, and image influence, with a total of 12 evaluation indexes. The authors also take four projects as examples for quantitative evaluation, proving the feasibility of decision-making model.