Research Of The Safety Operation Strategy With Least Cost Of IPP (Independent Power Producers)

Results of the reform in power industry will eventually lead the power plants to the market force and be the major competitors. The independent power producers (IPP) are facing a generation market with significant changes in operation, external and internal conditions. The objective of IPP is to provide prompt services and maximize profit at meantime. Therefore, the utmost problems faced by IPP and should be tackled immediately by IPP are how to upgrade the entrepreneurial management level, sum up in time the end-users' information with internal information for prompt rational decisions so as to ensure the sufficient safety margin, lower costs, increase the utilization of capacity, guarantee the profit goal of the company, and realize the "safety and efficiency" model. The purpose of this paper is to research the development strategy i.e. cost prevailing strategy for IPP, discover some effective measures for IPP to realize the strategy and study quantitatively on the safety operation strategy with least cost. The paper exploits the relationship between utility and budget control in microeconomics and establishes a mathematical model to find the equilibrium between effectiveness and safety, so as to set a reasonable model for safe investment, efficiently segment the limited input in different aspects, and provide guidance for operation.