Wijnia, Y.C. and J.P. Warners: Prioritizing investment. The value of portfolio decisions in electricity infrastructure management, pp. 1-10. In: Proceedings of the 29th IAEE Annual International Energy Conference 2006: 'Securing Energy in Insecure Times', 7-10 June (2006). At: Potsdam, Germany. [s.l.]: IAEE, 2006. Eds.: Erdmann, G. and U. Hansen. International Proceeding (refereed).
In Europe, most of the energy distribution companies are confronted with tighter budgets, as the regulators place efficiency targets on those monopolists. This calls for a new approach for decision making, as the traditional evolutionary process of policy setting and evaluating investment proposals is not fast enough to deal with the change in the constraints. The portfolio decision is such a new approach. However, making a portfolio decision in a multi value system like the energy distribution system is not straightforward. In this paper we describe the theoretical background of the portfolio decision and the way to make it practicable. Finally, we present the findings of the implementation of the portfolio decision in a large Dutch energy distribution company. In this case we found that the portfolio decision is a robust approach to improve the quality of decision making.