Investment Optimization Model for Distribution Networks Projects With Risk and Efficiency Constraints

With the penetration of new energy, electric vehicles and others, distribution networks (DN) nowadays are facing the increasing uncertainties. investment competition in the DN is intensifying. Investment efficiency and investment benefits have become the focus of consideration for power grid companies. A proper investment portfolio model is required for the investor to choose better candidate between different functional and cost candidates. Hence, this paper proposes a two-tiered index system by integrating the development diagnosis index of DN and assessment of the investment efficiency of an individual project. Moreover, the distribution characteristics of the project yield into investment risk caused by project uncertainties are considered by conditional value at risk (CVaR). So, a multi objective optimization model of DN portfolio investment solved by fuzzy satisfaction to get precise investment strategies is established to cooptimize the trade-off between efficiency and risk. The proposed model is validated using 20 projects in a package of investment plan of a power grid company as case study to verify the effectiveness of the proposed approach.