The Investigation for the Risk Management Strategy in the Electricity Market

The reform of the power market promoted the development of the power industry, meanwhile, also brought about the inherent uncertainty. Face the uncertainty of the market, transmission provider need relevant risk management in invest and trade. Based on learning the experience of the risk management in Finance &Insurance industry, this paper introduces the concept and meaning of the risk management in electricity market, and comes up with the risk management model for the power purchasers in the electricity market where multiple trades coexist, and discuss in details that multiple parameters have effects on the purchasing risk. The theoretical analysis and discussion for this model is conducive to understand the economical theory of the trade among power purchasers in power market in depth, and has some significance on the practical power market.