Power Industry Risk Assessment: Current Practices

Abstract

This paper discusses the main types of risks associated with electric power companies in the context of their interaction within the market relations. The second chapter provides a classification of companies' technological risks based on the probability of their formation and the degree of their consequences. The third chapter describes the main stages of the utilities” life cycle. The fourth chapter describes the basic methods for analyzing and assessing various types of risks for utilities. In the fifth chapter, the authors present a comprehensive analysis and risks assessment of a grid company based on expert assessments and SWOT and STEP analysis. One of the largest grid companies in the Russian Federation was selected as an object for analysis. As a result of the risk analysis of the grid company, the most appropriate approaches to assessing the company's risks for each stage of its life cycle have been identified. The authors also proposed approaches to building a risk management system for electric power companies, based on the results of the grid company's analysis and risk assessment.