Application of risk management in power quality market

Suggestion of power quality market (PQM) has enriched electricity market, and characteristics of PQM require more advanced managing methods for power quality supervising department (PQSD). Especially economic estimation for power quality (PQ) accidents and pricing for electric energy with different PQ require sharing their information between electric utilities and power customers. But it is difficult to actualize between competitors against profit risk management provides a new approach to solve this problem. This paper introduces risk management into PQM, and proposes a new pricing method for electric energy with different PQ, that is to add PQ insurance to basic electric energy price. This method changes the economic estimation that is the most difficult work in PQM to compensation choice of everyone. It avoids the difficulty and deviation of estimation. Adopted "provider insurance" theory and reasonable insurance articles, a decentralized decision system can be set up considering reserve power supply as commodity. Also, some investment problems in PQM are discussed in risk management view.