Decision analysis for purchase risks of the purchaser in the four trading markets under the electricity market framework

Abstract

This paper mainly illustrates that electricity purchasers face the decision of electricity purchase and the issues of risk managements in the four trading markets under the framework of the electricity markets. The restrictions and non-restriction purchase/sale of two purchasing electricity models are set up by means of Variance measuring risk under the framework of the electricity market. Meanwhile, in the paper, it also proposes several feasible algorithms to minimize risks for the electricity purchaser by guaranteeing their return.