Research On The City Grid Engineering Investment Decisions Based On The Reliability

In the traditional electric power investment system, as the main body, the state invests network project in order to increase social income, so there is no exist of market failure problems because of externalities. Along with the development of power system reform, the electric power company is an independent enterprise legal persons and main body of investment, and it is engaged in market activities to achieve the maximum profit. Because China is in primary phase of power system reform at present, we still lack the distribute ion system of reliability earnings in electric power system, because power commodity has social commonweal nature, and the existing mechanism has not effective incentive for electric power company market behavior, the electric company's behavior is the factor of the market failure, the direct embodiment of city network project is that the investment decision is not reasonable.An important method to solve such problems of externality is internalization of externalities, which also called definite property right problem. Power supply reliability is an additional important technical index when the electric power company is selling electricity commodity, with the development of social and economy, reliability indexes gradually have the features of the products. Through this method, the electric company maximize returns and social benefits maximization agreed in a direction.Constructing City network engineering will be raising power selling, and also can increase urban power supply reliability, which will increase power users potential benefits, so as to improve the overall social income, therefore city network project is different from general engineering project with its externality characteristics. Based on the electric power company, This paper will be discussing a set investment decision-making system in a city grid project which improve social benefit not just electric power company profit. This system is built with externality internalization, and stipulated the power supply reliability is property rights of electric power company, which regard the potential returns as electric power company profits, and discusses influence of power supply reliability to city network engineering cost. Combining the traditional city network engineering cost and benefits of the city grid projects, power company can make the reasonable investment decision.