Method for forming the portfolio of projects to reduce losses in electric networks based on the lean approach and a feeder-to-feeder analysis

Igor Achkasov,Tetiana Pushkar,Yevheniia Boiko,Yuliya Vykhodets

doi:10.15587/1729-4061.2018.140871

Abstract

This research aims to develop an approach for forming the portfolio of projects for reducing losses in distributive electric networks. The purpose of this paper is to substantiate the selection of projects for reducing losses in distributive networks for the portfolio of projects. The project management of the reduction of losses is based on the principles of value-oriented organization and economic production. We proposed a step-by-step method of formation of a portfolio of projects for reducing losses, in which it was proposed to use a feeder as the unit of analysis. This approach enables a power supply company to create the optimal portfolio of projects by the criteria of value, risks and costs. The portfolio of the projects for reducing electric power losses in distributive networks of a power supply company includes a set of technical and organizational projects. The proposed approach to formation of the projects’ portfolio includes five stages. Stage 1 involves the identification of the components of the portfolio projects, the basic among which are initiatives, projects, programs, and sub-projects. The projects are grouped at stage 2. To group the projects, we proposed four templates that characterize technical and organizational projects in the portfolio. Stage 3 involves evaluation and selection of projects by the quantitative and qualitative indicators. Value, risks and costs were determined as the main criteria to substantiate the selection of projects. The analytical sample of the projects according to given criteria becomes the basis for the selection of projects. Stage 4 implies prioritization of projects by their ranking. Ranking is performed by means of comparing the values of the indicators of value and attractiveness of a project by the project group or by the entire portfolio of projects. Stage 5 implies balancing the projects’ portfolio by identifying discrepancies between the indicators of project groups and «smoothing». Based on the formed portfolio, the flexibility of losses reduction management increases, since it makes it possible to redistribute the composition of projects by priorities and regulate the use of investment resources.

Highlights

The state and development of the power sector as one of the main strategically important sectors of the country determines the possibility to address the issues of sustainable development of the national economy, and to ensure the national security of the state
It was proposed to select a feeder as the new unit of analysis of electric power losses in distributive networks in order to create initiatives to reduce losses
It is substantiated by the fact that a feeder can be used as a unit of observation of losses and for obtaining structured data that make it possible to discover hidden reserves of reduction of electric power losses

Summary

Introduction

The state and development of the power sector as one of the main strategically important sectors of the country determines the possibility to address the issues of sustainable development of the national economy, and to ensure the national security of the state. The strategy of development of the power industry of Ukraine until 2035 determines the integration of the Ukrainian power markets into the unified EU power market and inclusion of the power system of Ukraine to the EU power system. The Strategy emphasizes technological upgrading of the power sector as an important priority of development of the power industry in Ukraine [1]. Modernization and subsequent innovative development of the system of electrical networks as a part of the power sector in Ukraine at this stage faces considerable complexities.

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Conclusion