Improved TOPSIS method for power distribution network investment decision-making based on benefit evaluation indicator system

Abstract

Purpose

The aim of this paper is to review the current situation and existing problem, establish investment benefits evaluation indicator system and introduce synthetic approach degree containing Hamming approach degree, Euclid approach degree and gray correlation degree to improve the shortage of Euclidean distance in traditional TOPSIS method, and the evaluation result is strengthened by multiplication rule. This paper aims to solve the distribution network investment decision-making problem and construct a comprehensive distribution network investment benefit indicator system, which is more suitable for China distribution network characteristics.

Design/methodology/approach

This study develops improved TOPSIS methods for decision maker in the power distribution network market and uses an example to prove its effectiveness and superiority in practice which can realize the combination of theory and practice.

Findings

The research shows that the investment evaluation indicator system built in present paper covers more investment benefit influencing factors (such as qualified rate of trunk cross-section, pass rate of N-1 lines), and the evaluation result obtained by improved TOPSIS method is more efficient and persuasive.

Originality/value

The study can help investors evaluate distribution network project more efficient, and make contribution to the choice of distribution cases with similar investment benefits.

Citation

Niu, D., Song, Z., Wang, M. and Xiao, X. (2017), "Improved TOPSIS method for power distribution network investment decision-making based on benefit evaluation indicator system", International Journal of Energy Sector Management, Vol. 11 No. 4, pp. 595-608. https://doi.org/10.1108/IJESM-05-2017-0005