The Optimization Study Of Zhejiang Power Grid Annual Investment Plan

This essay is aimed to deal with the practical problem Zhejiang Electric Power Corporation encountered in its work of distributing investment amount among the electric power supply enterprises in the11cities under its government in the coming year. Since the money is mainly used for the construction and routine maintenance of power grid in the11cities, it is a fixed-asset investment program.In the existing research achievements about the study of fixed-asset investment, whether the traditional financial evaluation method in the Corporate Finance Science, or the popular real option evaluation method in the Investment Principles, both of which are applicable to the analysis of most investment programs of most enterprises, have their study focused on the profits. However, Zhejiang Electric Power Corporation distinguishes itself from other enterprises in two aspects. First, it has a monopoly both on the buyer and the seller side. Second, Zhejiang Electric Power Corporation is a governmental enterprise. Due to the two characteristics, both the profit and equity of the investment program should be taken into consideration, when formulating the distribution scheme of the investment amount. In this way, the electric power demand of the developed area can be met, and the development of other areas is guaranteed as well.Based on the general thought, the paper adopts the concept of Gini Coefficient which is widely used in the areas of distribution of national revenue and environmental management, when formulating the distribution scheme of the investment amount. By choosing the guideposts, an optimum Gini-Coefficient-based distribution scheme comes out in the way of obtaining the minimum aggregate Gini Coefficient when there is only one target but many constraint conditions. The final proposal submitted to Zhejiang Electric Power Corporation is an Excel-based accounting template which makes itself programmed and easy to operate.Taking the features of the economic and social development in every parts of Zhejiang and many other factors into consideration, this paper introduces a new way to distribute the aggregate amount of fixed investment and to measure the distribute plan, which is scientific, feasible and easy to operate. This research compensate for the shortage of the justice in former researches and the concept is developing and of extension.