An Empirical Analysis of Shandong Power Grid Operational Efficiency Based on DEA-Malmquist

Introduction

State Grid Shandong Electric Power Group Corporation is a wholly owned subsidiary of the State Grid Corporation, responsible for planning the Shandong power grid construction and providing safe, reliable and high-quality supply of electricity. By the end of 2011, Shandong Company has been established 21 departments, managed 17 city power supply enterprises and 98 county power supply enterprises, served 3.5 million customers and supplied 95,790,000 population and 15.7 km2 area for power. In 2011, the sales of Shandong company have exceeded 30 billion kwh for the first time, with an increase of 22.3%.

With the expanding of the power grid, is the power grid enterprise operation efficiency improved significantly at same time? It’s of guiding significance to improve the efficiency of Shandong transmission and distribution network. This paper studies Shandong Electric Power Group Corp's power grid operation efficiency from the angle of horizontal, vertical and internal analysis. We choose 17 city power companies under the control of Shandong Electric Power Group Corp as a decision-making unit. Through the DEA analysis, we help the Liaocheng power supply company to look for the operation difference with the same level power supply company, and put forward the improvement measure.