Research On The Decision-making Of Asset Replacement For Power Grid Enterprise Under The Condition Of Regulatory Asset's Regulation

The competition mechanism will be gradually introduced into interior electricity-generating and electricity-consuming markets. Since the service of electricity-transporting and allocating owns the network characteristic which leads to the inherent prominent feature of monopoly, government regulation is still necessary for the power grid enterprises. As electric power sector regulation has just been adopted in China, the regulatory system as well as the related laws and rules is to be further improved. In such situation, the power grid enterprises are prone to confront more rule-related risks than that in a mature condition. Supposing the effective asset regulation exists, the risk the power grid enterprise confronts due to the asset regulation under the circumstance of increasing the cost or of controlling highest price will be the most serious one. For this reason, while being regulated, the power grid enterprise should study actively the regulation management and strengthen asset management.The power grid asset regulation involves various daily managing and decision work, which includes asset definition, asset reforming decision, asset replacement decision, asset technical remodeling decision, and asset obsolescence management and so on. At present, the mechanism for the arranged use of those assets which are out of use is still not established. What's more, the abandonment of asset which is still beneficial leads to the waste of resources. Thus, timely replacement of the asset, to assure the best power-transporting condition, to avoid the waste of resource and finally to avert regulatory risks, is essential in the power grid asset regulation. Therefore it's obvious that in the producing-operation management of power grid enterprise, the asset replacement decision based on effective asset regulation is a complicated technical economy problem. Against such background, this paper centers on the study of asset replacement decision.Aiming at the fact that the present asset replacement method can not fully reflect the characteristics of power grid like effective asset regulation, reliability and economics, considering these three elements, through analyzing the present asset replacement theory and method, this paper brings up and analyzes the scoring system of power asset in short and medium terms as well as the long-term replacing model which is based on the age and service life of the asset. Finally,this paper puts forward a method of asset-replacing B/C ratio to determine the replacement needs of individual assets. This paper holds the point of view that building long-term asset replacement model can predict the future needs of asset replacement, and determine the trend of power grid enterprises' asset replacement and some correlative problems they're facing; the scoring system can analyze and diagnose the condition of asset more accurately, which is especially applicable to the prediction and decision of the replacing quantity in the short-medium term; the method of asset-replacing B/C ratio will link the replacement cost of assets with the efficiency and technology through the index of asset-replacing B/C ratio, which considers the replacement cost, giving consideration to the replacement to improve the performance of power grid assets. In a word, these methods can regulate the investment of power grid enterprises and increase the benefits and efficiency of the operation of the enterprises. Moreover, these methods are worth using for reference in regard to the power grid reform and rational arrangement of the technical reconstruction project.