Applications of Interval Theory in the Evaluation and Decision Making of Power System Projects

Abstract

With the utility deregulation and market operation in China, economic factor is becoming more and more important to the evaluation and decision making of power system projects. As an important characteristic of the electric market, uncertainty is an indispensable part of project evaluation and decision making. Considering that the traditional decision making theories fail to solve the uncertainty problem entirely, this paper applies the interval theory to evaluate and make decision on projects. The interval net present value (INPV) theory is used to conduct economic evaluation, and an interval analytic hierarchy process (IAHP) and interval binary programming based method is proposed to perform project decision-making. Case study has proved the effectiveness of the proposed method.

Comprehensive Benefit Evaluation of the Power Distribution Network Planning Project Based on Improved IAHP and Multi-Level Extension Assessment Method

“…The weights of all indices can be obtained according to , and the consistency tests of all the judgment matrixes have been checked by using the method involved in this study. Moreover, the distance of the third-level index and the classical field can be calculated by using Equation (21), which is displayed in Table 13. Finally, according to the interval weights obtained from the improved IAHP method and the distance of the third-level index and the classical field in Table 13, the evaluation grades and the correlation degree of the object to be assessed, first-level index, and second-level index can be obtained by using Equations (20) and (22), as shown in Table 14.…”