A New Random-price Model And Natural Gas-fired Prospective Analysis

Power price is a focus to people for a long time ,With the development of electricity markets, it is becoming a vital problem. This paper introduces how to model power price in power market, and gives power prices.Firstly, the paper introduces the background of the reform of the electricity industry, the history of the electricity markets and their status quo.Then the concept of Futures,Options,Option Pricing and Geometric Brownian Motion is introduced. The concept of Stochastic model of Electric Power Prices in this basic.The second part of the paper discusses and gives Stochastic model of Electric Power Prices in two conditions .one is Stochastic model of Electric Power Prices in single-market environment, another is Stochastic model of Electric Power Prices in a multi-market environmentThe third part of the paper mainly analyzes the interaction and relation between gas and electricity prices, and gives a future to gas generation in china.