Risk Evolution and Simulation of Power Grid Project Cost Management: A System Dynamics and Life Cycle Theory approach

With the rapid development of China's economy, social electric power loads are rising steadily, and the scale of power grid construction is gradually expanding. A series of engineering cost management risks have begun to appear, which have a huge impact on the cost of power grid engineering. In this context, this article identifies potential risk factors at different stages of the life cycle of a power grid project and explores the interrelationships between different risk factors. Finally, the system dynamics is used to establish the risk evolution model. Combined with actual engineering data, the established model is used to simulate and evaluate the risk of power grid project cost management. The above analysis is helpful to further improve the cost management of power grid engineering.