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Optimization study of grid business investment timing considering return on investment

Author

Listed:
  • Zheng, Xinyuan
  • Shen, Jianfei
  • Dong, Huanran
  • Liu, Hao

Abstract

This study proposes an investment timing optimization technique that takes return on investment into account to implement the power grid company's long-term project investment decision. Firstly, the power grid business investment efficiency evaluation system is built. Secondly, a model of explanatory structure is constructed to explain how project investment and return affect power grid investment ability. Finally, a time-series optimization model that maximizes the total return on investment is developed using dynamic programming theory. The findings demonstrate that the timing optimization approach can successfully assist the power grid's long-term investment choice and raise the overall investment benefit by 14.37 %.

Suggested Citation

  • Zheng, Xinyuan & Shen, Jianfei & Dong, Huanran & Liu, Hao, 2025. "Optimization study of grid business investment timing considering return on investment," Finance Research Letters, Elsevier, vol. 80(C).
    • Handle: RePEc:eee:finlet:v:80:y:2025:i:c:s1544612325006178
    DOI: 10.1016/j.frl.2025.107356
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    References listed on IDEAS

    as
    1. Hongliang Tian & Liang Zhao & Sen Guo, 2023. "Comprehensive Benefit Evaluation of Power Grid Investment Considering Renewable Energy Development from the Perspective of Sustainability," Sustainability, MDPI, vol. 15(10), pages 1-17, May.
    2. Birong Huang & Zilong Wang & Yuan Gu, 2023. "ESG Investment Scale Allocation of China’s Power Grid Company Using System Dynamics Simulation Modeling," IJERPH, MDPI, vol. 20(4), pages 1-16, February.
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