Analysis Of Risk Assessment And Risk Management For Power Generation Enterprise

Power industry's market reform is an inevitable trend, the diversification and complexity of risks faced by the power generation enterprises in our country is increased. How to manage risks, and how to coordinate the contradiction between profit and risk have become a very important research topic that must be addressed. With a continuous rise in energy prices, the meaning and status of risk management of the power industry increase constantly, no matter they are power generation enterprises or power grid enterprises. Compare to the power grid enterprises, the risk sources faced by power generation enterprises are more diversified and complex, thus risk management is particularly important for power generation enterprises.This paper describes the risk management for power generation enterprises according to the risk-management processes, and focuses on risk assessment. In the section of risk identification, this thesis discusses the external and internal risks of power generation enterprise. This thesis focuses on risk assessment and discusses the risk assessment model. Combining economic evaluation and characteristics of Chinese electricity market, this thesis applies VaR method in the risk assessment of power industry and power generation enterprises. This model is applicable not only to the power industry research but also to the specific risk assessment model for power generation enterprises. Meanwhile, this model could also make quantitative assessment of system risk for power investment, as well analyze the impact of various risk factors (risk source) to the system risk. This thesis evidences the applicability of the model by empirical calculation. The comparative analysis of the model to the simple application of VaR method in the power generation risk assessment shows that this new risk assessment model has some merit.In short, based on the risk identification and analysis of power market, this thesis combines the existing risk management theories to creatively apply VaR method in the risk assessment of power industry and research into the practical risk assessment model in order to give some enlightenment to the risk assessment and risk management of power generation enterprises.