Chinese grid investment based on transmission and distribution tariff policy: An optimal coordination between capacity and demand

The Transmission and Distribution (T&D) tariff reform has constrained the revenue and increased the operating pressure of the China's power grid companies. The contradiction between investment demand and investment capacity is increasingly prominent. It is urgent to carry out relevant research on how to alleviate the negative impact of the reform of transmission and distribution prices and realize the sustainable development of power grid enterprises. In order to provide reference for the investment decision-making and operation management of China's power grid companies, and to achieve the goal of coordinating investment demand and investment capacity as much as possible, this paper analyzed the specific content and impact of the T&D tariff reform, constructed a power grid investment capacity calculation model, and established the coordination and optimization model of grid investment capacity and investment demand is developed. Then, an empirical analysis was carried out by taking two provincial grid companies in different situations as examples to determine a reasonable investment scale, verify the validity of the model, and put forward investment strategies and policy recommendations that adapt to the reform of transmission and distribution prices. (C) 2020 Elsevier Ltd. All rights reserved.

Automated summary

The reform of Transmission and Distribution (T&D) tariffs in China has put pressure on the revenue and operations of power grid companies. Research is needed to alleviate the negative impact and achieve sustainable development. The paper developed models to calculate investment capacity, coordination, and optimization, and proposed investment strategies and policy recommendations through empirical analysis.