A Dynamic Investment Decision Model of Power Grid

The traditional investment decision model of power grid usually ignores the impact of new projects on the power flow and investment income when deciding the investment sequence. This paper proposes a dynamic investment decision model of power grid that considers the construction time sequence. After each new project is decided, the subsequent projects to be built will be re-decided, and the accuracy of the decision will be improved step by step through the multi-stage dynamic decision process. The establishment of the model comprehensively considers the technical, economic and social benefits, rewards the good and punishes the bad for each index to increase its distinction, and uses the utility theory to take into account the investor's risk preference. Firstly, the weight of each index is obtained by the fuzzy analytic hierarchy process. Then, the utility function matrix is calculated by the utility function. Finally, the comprehensive utility value of investment ranking is obtained by the distance vector merging algorithm. The project with the largest comprehensive utility value should be constructed first. After eliminating the existing projects, repeat the above steps until the last project is built. Taking four projects of IEEE 9-bus system as an example to make dynamic investment decisions. The test results show that the dynamic investment decision is different from the traditional static investment decision, which verifies the feasibility and effectiveness of the proposed model.