Power Market Forward Contracts And Its Risk Model

Along with the power market mechanism lead into,the market price risk and other risks must appear. The market will get the price down over a long time,this is the fact that has been proved by the theories and practices. When power market builds beginning,the traders always use forward contracts to solve price risk,that's to say that the most contracts are made by using forward contracts in the beginning. Some power markets are mostly using forward contracts in our country. For connecting with our country real condition,this paper mains to make new contracts to solve risk in power market,and be make sure that it can be used in practice.