Risk Based Decision for Reinvestments in Distribution Systems

This paper illustrates the challenges associated with risk assessment for reinvestments decisions. A holistic framework for risk assessment in electricity distribution systems will be described first and then used to structure the analysis and decision making in a case study concerning cable reinvestment. These decisions are generally multi criteria decisions, including risks related to e.g.; economy, environment, reputation, safety and quality of supply. The paper describes the use of different types of decision support tools used to aid reinvestment decision making in electricity distribution systems, with emphasis on multi criteria decision analysis (MCDA).