Economic Assessment Method For Urban Distribution Network

As an important part of urban distribution network planning, economic assessment has a crucial and direct impact on its construction and investment. However, most of contemporary methods merely follow traditional financial analysis, thus bring several limitations which are mainly showed in two aspects: 1) lack of evaluations about investments against distribution network physical characteristics because of their inadequate concerns on them; 2) existence of unilateralism and uncertainties about assessment results because of their only dependences on load forecasts. As a solution, a comprehensive economic assessment system and method for urban distribution network is presented in this paper. It consists of three parts: technical and economic analysis, financial analysis and uncertainty analysis, which successfully indicates the inherent relationship between network characteristics and its economy by effectively combining power supply capacity, reliability, power loss and electricity price together. The main work is shown as follows:(1) Analyzing significant factors about economic assessment like: power supply capacity, reliability, power loss and electricity price with the assumption of network maximum potential profit.(2) Establishing an economic assessment system for urban distribution network, which is composed of three parts: technical and economic analysis makes its evaluation on the side of network characteristics, classified and integrative indexes are respectively built to give inside looks at improvements on both network specialities and profits, while with the help of which, a new method for decision-making on annual network construction and investment is given; financial analysis makes its evaluation on the side of marketing demands, which provides a useful approach for investement appraisal with traditional indexes; and uncertainty analysis makes its evaluation on the side of investment ventures, which gives probable tendencies of main indexes with fluctuations of certain sensitive elements.(3) Introducing applications of the economic assessment system as well as its general decision-making approach using AHP method with Entropy weight.(4) Giving an annual replacement decision-making method for electrical equipments considering both distribution network reliability and equipment replacement economy.The proposed economic assessment system and method for urban distribution network is applied to the distribution network of Shanghai Siping Community. Its practicability, convenience, effectiveness and efficiency are strongly proved by the satisfactory results and its contribution to further research is fundamental and valuable as well.