A risk-reward balancing model of generation side and purchasing side based on optimized total risk-reward
Shoujun Chen, Kun Chen, Zhongfu Tan
COMPUTER MODELLING & NEW TECHNOLOGIES 2013 17(5C) 229-233
The research institution of energy environmental economics, North China Electric Power University, Beijing 102206
This paper used the Modern Portfolio Theory (MPT) to analyze the risk-reward of purchasing side and generation side by
purchasing-selling power from multi-market, considered the game between the risk-reward of purchasing side and generation side and built a balancing risk-reward model of two sides in the condition of the optimal total risk-reward of both sides. Based on the total optimal risk-reward, the model optimized the purchasing-selling power proportion portfolio to make the risk-reward of both sides in their acceptable range and increase their reward at the same time. The simulation example confirmed the validity and suitability of the model, and manifested that the proposed model provides both the power purchasing side and the generation side some reference and guiding value for purchasing decision -making.