Research On Profiting Strategy Of Power Generation Enterprise In The Electricity Market Environment

Compare with the age of integration, under the condition of electricity market, the operation mode and management strategy of power generation enterprise are being reached huge change, facing opportunities and challenges which are unprecedented. In the new power market structure, the purchase price and load of generation are random variables, the revenue of power generation enterprise are implemented by competition. Meanwhile, their revenue structure also change significantly, the unified market was segment into many parts which are independent but contact with each other. This is the source of revenue. At this time, the most critical problem of power generation enterprise in the power market is how to develop the best revenue strategy and cost strategy to maximize profit in the condition of some constraints.The revenue of power generation enterprise is mainly implemented in electricity market segments. Each market such as load market (include of mid-long term contract market and spot market), ancillary services (this paper mainly discuss reserve service), capacity market, has its own features. Based on analysis of the features for each market, this paper first discussed revenue strategy of power generation enterprise in each market. The electricity is transacted in each of market. Because of different purchase price, we must consider how to distribute electricity capacity in each market, this paper discussed the problem that how power generation enterprise distribute electricity capacity between two market by utility function.So as to generation cost, based on the analysis of cost structure of power generation enterprise, this paper first discussed the calculation and sharing of fixed cost. Secondly, we introduced real-time cost analysis to analyze the cost and the change of cost which are occurred continuous in Production process, track the progress that cost transform into commodities, and analyze the change trend of cost. Because the cost of coal is the most important variable cost of power generation enterprise, we proposed that power generation enterprise take some measures to strengthen the management of coal.Under the condition of electricity market, operating risks are inevitable, though mid-long term contract has the function to avoid risks, its efficacy is limited. This paper gave a model to avoid competition risks by use Dynamic Program. The practice of abroad electricity market suggest that electricity financial markets is a useful way to avoid risks, so this paper pointed out that power generation enterprise could use financial power trading to achieve the aim that hedging or arbitrage.