Home  Journals  Regional Economics: Theory and Practice  7(442) - 2017 July

Companies' investment projects in the regional electricity market: A methodology for selection

Vol. 15, Iss. 7, JULY 2017

Article PDF Version

Received: 13 February 2017

Received in revised form: 24 February 2017

Accepted: 6 March 2017

Available online: 14 July 2017

Subject Heading: LOCAL MARKETS

JEL Classification: D71, D72, O11, P25, Q01

Pages: 1344–1364

https://doi.org/10.24891/re.15.7.1344

Subject The article deals with the problems of careful selection of investment projects that form the investment programs of regional electric utilities to enhance the investment attractiveness.
Objectives The article aims to develop and propose a project selection procedure in the investment programs of the companies in the regional electricity market. Also, it aims to propose policy advices to determine the needs of electricity market segments in network capacity, establish the relative importance of the characteristics of the investment project, rate projects for priority inclusion in the investment program.
Methods For the study, I used an integrated methodology based on systems, structural and process approaches. Statistical, graphical, factor, and comparative methods are the main methods of study.
Results The paper presents a methodology for selecting projects in the investment programs of the companies in the regional electricity. It may provide an opportunity to assess the investment needs identifying the priority areas.
Conclusions The appropriateness of including a particular project in the investment program is the most effective implementation of all the objectives defined by the company's management and the strategy for the development of the region's electric grid complex, which requires a multipurpose optimization of the investment program methodology.

Keywords: electricity market, electric grid company, investment program, project selection technique

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