Economic Analysis Of Urban Power Network Planning Projects

Economic analysis is indispensable in power network planning and construction. As a public utility, power transmission corporations should take some social responsibilities besides self-development. With the development of socialistic market economy, project investment and benefit are emphasized more and more by power transmission corporations. In the CODE of PLANNING and DESIGN of URBAN ELECTRIC NETWORKS (PUEN) in 2006, it is requested that economic evaluation of urban power network planning should include financial evaluation and social benefit evaluation. On the stand of power transmission corporations, financial evaluation, using the method of"with and without comparison", involves calculation of capital finance indexes with no planning projects, and calculation of finance indexes of the sum of capital and increment with planning projects, during the calculation period.National Grid is the largest power transmission corporation in China, whose management status can reflect the average level. On the basis of the analysis and calculation of financial report of National Grid during 2002 to 2004, and horizontal and vertical comparison of financial indexes, management status and characteristics of National Grid are discussed.Based on PUEN in 2006, this paper presents the economic evaluation method and content demand for the first time, and takes urban power network investment and construction of a city in northwest (Y city) during the 11th 5-year planning as an example to deduce the profit and loss account, cash flow statement and balance sheet in 2005. The method of"with and without comparison"is used and different methods are tried in border condition computation. The profit ability and redeem ability, with and without projects, are also analyzed as well as the sensitivity of the three factors: electricity price, investment and electricity. The result shows that the method of"with and without comparison"can reflect the management status of power transmission corporations in the investment process, and the calculation results can help the planners greatly in assistant decision.