Comprehensive Performance Evaluation of Electricity Grid Corporations Employing a Novel MCDM Model

Abstract

Under the new round reform of electricity market in China, a large amount of electricity sales companies has emerged in some provinces, and the reform of transmission and distribution tariffs is also in progress. Electricity grid corporations are required to update their operational strategies and improve comprehensive performance to adapt to the fierce competition in the electricity market. Considering this, a novel MCDM (multi-criteria decision making) model integrating Fuzzy-Delphi, the best-worst method (BWM), the entropy weight calculation approach, and the VIKOR method is established in this investigation to assess the comprehensive performances of five selected provincial electricity grid corporations. The comprehensive performance assessment indicator system is constructed in accordance with Fuzzy-Delphi approach, composed of 21 significant sub-criteria from the aspects of profitability capacity, development capacity, safety production capacity, electricity supply reliability, outstanding service provision, energy conservation, and environmental protection. The sub-criteria weights are computed by combining subjective weights determined by BWM and objective weights computed by the entropy weight calculation approach. The comprehensive performance evaluation model is established based on VIKOR. As the electricity grid corporation A is superior in profitability capacity (especially in electricity sales amount) and safety production capacity criterion, it is superior over other four electricity grid corporations. The established novel MCDM is practical and rational, which is applicable for electricity grid corporations’ comprehensive performance evaluation.