A novel evaluation method of societal benefits of ultra high voltage power grid optimizing power energy allocation

Abstract

Although Ultra High Voltage (UHV) power grid requires heavy investment, it can also produce vast social economic benefits by optimizing power energy allocation. Owing to the existing controversy over the economy of the UHV power grid, it is necessary for policymakers to propose a scientific method used to comprehensively analyze huge costs and benefits caused by the UHV power grid. In this paper, Life Cycle Cost (LCC) is introduced to analyze cost dimensions of the UHV power grid and shadow price theory is used to evaluate huge potential social benefits brought by UHV power grid. Based on these shadow prices, social benefits of UHV power grid are put forward from aspects of saving installation benefit, saving coal-fired benefit, power loss reduction benefit, short-circuit current reduction benefit, sustainable development benefit, and social resource distribution optimization benefit. Some evaluation indexes for social benefits based on input-output analysis table of the LCC mode are calculated to be comparable with those of the traditional cost mode. A certain UHV power grid of China is applied to verify the effectiveness and feasibility of the proposed evaluation method.