Multiple criteria decision making in distribution utility investment planning

Abstract

The optimisation of capital expenditure is an important consideration for an electricity distribution utility if it is to remain competitive in an ever demanding market. In order that capital expenditure can be optimised it is important that the utility has some means of identifying and implementing the most efficient investment options. This paper proposes the novel use of multiple criteria decision making (MCDM) methods to assist with the decision making process for utility problems involving multiple investment programmes. A case study is performed showing how one MCDM method can be used for a typical utility investment problem. In addition, the uncertainty associated with each investment strategy is included in the investment optimisation.