Research on comparison of power grid planning program based on life cycle cost

The Life Cycle Cost (LCC) of power grid assets is a model that was born in China out of necessity because of the liberalization of the energy market. This theory is applied in power system planning to control long-term cost and short-term investment. We proposed a transmission network cost calculation model based on LCC to compare and select the schemes of smart grid planning which considers the effects with reliability, economic indicators and different replacement cycles. The reliability index calculation and quantitative method based on Monte Carlo model is put forward based on the theory of power network reliability analysis and LCC theory. This paper verifies the accuracy and effectiveness of the LCC cost calculation model with an appropriate example by comparing and selecting of two planning schemes for a complete 110kV substation.