Power Plant Portfolio based on Efficient Boundary

After China electric power industry market reform, electric power generation groups has competed for exploiting electric generation natural resources. With the consumption of good investment projects, generation groups will put more and more importance on investment risk. This paper adopts Lagrange multiplier to solve the problem of portfolio quadratic programming and further brings forward power plant investment portfolio model. It ascertains every least risk investment weights at certain possible return and further deduces a parabola return-risk curve. By selecting a certain acceptable risk, the generation group could realize best return rate.