Research on Benefit Evaluation Method for Smart Distribution Grid Projects Based on Improved QPA

Abstract

[Introduction] The comprehensive benefits of smart grid projects are the key factors influencing the formulation of technical solutions and investment decisions. Therefore, this paper proposes a new method for quantitative assessment of comprehensive benefits based on improved QPA, aiming at the shortcomings of existing methods, including the narrow scope of application, failed in differentiate between stakeholders, and distinguishing between current realizable returns and long-term potential earnings. Methods By analyzing the asset composition of a smart grid project, the cost, functions and corresponding benefits of various types of smart grid assets and relevant parties were mapped in the proposed method, and benefits and costs in accordance with relevant parties and cashing cycles were classified. Ultimately, a cost-benefit analysis of a smart grid project was conducted in accordance with the internal operational mechanisms of sub-systems and overall projects and external market mechanisms. Results This method can be used to quantify more comprehensive and effective multi-scale smart grid projects. Conclusion Based on practical engineering examples, it is shown that the proposed method is accurate and effective, and provides method support for the decision-making of project investment operation mode and technical solution.