Evaluating investment strategies for distribution networks based on yardstick competition and DEA

The traditional investment for distribution networks is mainly evaluated and conducted from the static perspective. A dynamic comprehensive evaluation method is essential to obtain an efficient investment strategy. Firstly, a hierarchical evaluation index system is constructed to describe the overall performance of the distribution network, which includes six types of criteria such as information level, power supply capacity, asset utilization efficiency and economy, power supply quality and loss, power supply reliability, and sustainable development level. Each criterion is composed of input and output indicators. Then, using projection pursuit method considering subjective weight constraints, a combined weight optimization model is proposed to calculate the weight vector of each criterion. Furthermore, the data envelopment analysis (DEA) based dynamic evaluation approach is set up to compute the investment efficiency defined as ratio of output and input. The time degree theory is also introduced to realize dynamic evaluation. Via yardstick competition among multiple regions and "reward and punishment" rule, a precise investment planning strategy can be achieved while minimizing construction cost and maximizing efficiency of the resource allocation. The numerical results on a practical 10-region distribution system in four planning cycles verify the effectiveness of the proposed method.