Abstract
In China, a new-round marketization reform of electricity industry is in progress, and the electricity transmission and distribution tariff reform is the core and important task. Currently, the electricity transmission and distribution tariff regulation has gone to the second round in China, and the electric power grid enterprises are facing a closed-loop regulatory system and an increasingly strict regulatory environment. Therefore, it is urgent to evaluate the risk of electric power grid enterprise that is related to electricity transmission and distribution tariff regulation, which can aid the electricity regulators and electric power grid enterprise operators to manage risk and promote the sustainable development of electric power industry. In this paper, a hybrid novel multi-criteria decision making (MCDM) method combining the fuzzy Best-Worst method (FBWM) and improved fuzzy comprehensive evaluation method based on a vague set is proposed for the risk evaluation of electric power grid enterprise related to electricity transmission and distribution tariff regulation. The risk evaluation index system is built. Subsequently, the FBWM is utilized to determine the optimal weights of electric power grid enterprise risk criteria, and the improved fuzzy comprehensive evaluation method that is based on vague set is employed to rank the comprehensive risk grade of electric power grid enterprise related to electricity transmission and distribution tariff regulation. The risk of a province-level electric power grid enterprise that is located in Northern China is empirically evaluated using the proposed MCDM method, and the result indicates that the overall risk of this province-level electric power grid enterprise belongs to ‘High’ grade, but it is very close to ‘Very High’ grade. The results indicate that the proposed hybrid novel MCDM method in this paper is effective and practical. Meanwhile, it provides a new view for the risk evaluation of electric power grid enterprise that is related to electricity transmission and distribution tariff regulation.
Highlights
Since a new round of electric power system reform policy promulgated in 2015, several key fields’ reforms have been comprehensively conducted in China, which include electricity transmission and distribution tariff, incremental distribution networks and electricity sales market, and the electricity transmission and distribution tariff reform is the core and important task for this round of electric power system reform [1,2]
When compared with the previous studies, there are two main contributions: (1) The first contribution in this paper is unprecedentedly to propose a novel hybrid multi-criteria decision making (MCDM) method for the risk evaluation of electric power grid enterprise related to electricity transmission and distribution tariff regulation, combining the fuzzy Best-Worst method (FBWM) and improved fuzzy comprehensive evaluation method based on vague set
The rest of this paper is structured, as follows: Section 2 presents the literature review of the MCDM method; Section 3 builds the risk evaluation index system of electric power grid enterprise related to electricity transmission and distribution tariff regulation; Section 4 introduces the proposed hybrid novel MCDM method, including the FBWM and improved fuzzy comprehensive evaluation method based on vague set for risk evaluation on electric power grid enterprise related to electricity transmission and distribution tariff regulation; Section 5 conducts the empirical analysis and Section 6 discusses the results; and Section 7 concludes this paper
Summary
Since a new round of electric power system reform policy promulgated in 2015, several key fields’ reforms have been comprehensively conducted in China, which include electricity transmission and distribution tariff, incremental distribution networks and electricity sales market, and the electricity transmission and distribution tariff reform is the core and important task for this round of electric power system reform [1,2]. A hybrid novel MCDM method is proposed for risk evaluation of electric power grid enterprise related to electricity transmission and distribution tariff regulation, which is composed of the fuzzy Best-Worst method (FBWM) and the improved fuzzy comprehensive evaluation method that is based on the vague set. (1) The first contribution in this paper is unprecedentedly to propose a novel hybrid MCDM method for the risk evaluation of electric power grid enterprise related to electricity transmission and distribution tariff regulation, combining the fuzzy Best-Worst method (FBWM) and improved fuzzy comprehensive evaluation method based on vague set. The rest of this paper is structured, as follows: Section 2 presents the literature review of the MCDM method; Section 3 builds the risk evaluation index system of electric power grid enterprise related to electricity transmission and distribution tariff regulation; Section 4 introduces the proposed hybrid novel MCDM method, including the FBWM and improved fuzzy comprehensive evaluation method based on vague set for risk evaluation on electric power grid enterprise related to electricity transmission and distribution tariff regulation; Section 5 conducts the empirical analysis and Section 6 discusses the results; and Section 7 concludes this paper
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