Accounting for the Life Cycle Cost of Power Grid Projects by Employing a System Dynamics Technique: A Power Reform Perspective

Author:

Wang Yongli,Song Shanshan,Gao Mingchen,Wang Jingyan,Zhu Jinrong,Tan Zhongfu

Abstract

In the context of China’s electric power reform, issued in May 2019, the “Transmission and Distribution Pricing Supervision Measures” have changed asset accounting in grid enterprises and therefore affected cost accounting in grid projects. This paper proposes a dynamic cost calculation model based on system dynamics and takes a power grid company as an example. On this basis, a sensitivity analysis of power grid engineering was conducted to determine the impacts of key factors of power reform on life cycle cost (LCC). Finally, suggestions for cost accounting and cost management were proposed.

Publisher

MDPI AG

Subject

Management, Monitoring, Policy and Law,Renewable Energy, Sustainability and the Environment,Geography, Planning and Development

Reference51 articles.

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2. The Energy-saving Benefit Evaluation Methods of the Grid Construction Project Based on Life Cycle Cost Theory

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