Applications of Interval Theory in the Evaluation and Decision Making of Power System Projects

With the utility deregulation and market operation in China, economic factor is becoming more and more important to the evaluation and decision making of power system projects. As an important characteristic of the electric market, uncertainty is an indispensable part of project evaluation and decision making. Considering that the traditional decision making theories fail to solve the uncertainty problem entirely, this paper applies the interval theory to evaluate and make decision on projects. The interval net present value (INPV) theory is used to conduct economic evaluation, and an interval analytic hierarchy process (IAHP) and interval binary programming based method is proposed to perform project decision-making. Case study has proved the effectiveness of the proposed method.