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Research on Utility Evaluation of Grid Investment considering Risk Preference of Decision-Makers

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Effectiveness evaluations are one of the important ways to guide grid investment and to improve investment efficiency. Improving the effectiveness of grid investment evaluations is studied based on the optimization… Click to show full abstract

Effectiveness evaluations are one of the important ways to guide grid investment and to improve investment efficiency. Improving the effectiveness of grid investment evaluations is studied based on the optimization of the investment evaluation index system and the utility evaluation model. The index system is optimized by establishing an evaluation index system of grid investment effectiveness, considering the redundancy between the indices, and constructing an ISM-DEA model. The utility function model was introduced to fully consider the different risk appetites of decision-makers, and a utility evaluation model that takes risk appetite into account was established. An improved weight integration model based on multiobjective optimization was established by considering the minimum deviation and the trend-optimal objective function when setting the index weights. The calculation results show that the feasibility of the index system optimization model and utility evaluation model constructed in this study is verified under the premise of satisfying the assumptions. By adjusting the risk preference coefficient of decision-makers, the dynamic optimization of the grid investment utility evaluation results can be realized.

Keywords: investment; model; evaluation; utility evaluation; grid investment

Journal Title: Mathematical Problems in Engineering
Year Published: 2020

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