Based on Prospect Theory of Project Priority Selection

Abstract

Under the background of new power reform, the project investment of power grid enterprises is faced with great challenges, so it is urgent to make scientific allocation of power grid investment to improve the return rate of investment. This paper presents a project priority comparison model based on prospect theory, which can well balance the influence of qualitative and quantitative factors on the portfolio scheme and ensure that the selected portfolio scheme meets the constraints of investment capacity, power grid reliability, capacity ratio and regional development. This model can provide some reference for power grid investment.