Auction Transaction Patterns And Management Strategies Of S Power Grid Under The Background Of Electricity Market Reform

The reform in electricity market is related to the implementation of China's energy strategy, and also affects the development of the national economy. The main mission of this round of electricity market reform is to construct a fair, organized, and healthy electricity market. Although some progresses were made in the first round of the electricity market reform started from 2002, the electricity market was not formed yet. However, there rise a lot of problems in the electricity industry after years of accumulation. The key factor consists in how to build an electricity market. And a top-level design is the starting point, then invitation of electricity market participants to the market, so as to form a trading relationship featuring plenty sellers together with plenty buyers. Finally, the mature electricity market will be constructed based on the system readjustment according to the market transaction. In the process of constructing the future electricity market, power Grid Company will lose advantages as monopolies in distribution and sale business, because of the fierce competition and the diminished market share. Besides, brain drain will also be a problem to be resolved. Since power grid companies play a critical role in this round of reform, and also the main market participants in the future, it is quite necessary and urgent to carry out studies on the challenges and coping strategies faced and taken by power grid companies under the circumstance of future electricity market.This paper selects S power Grid Company as the research object. The major theoretical frameworks and influential factors are to be sorted out through literature review. Then, based on those theories, factors, and the actual situation where S company is in, a simplified electricity trading model will be designated. C language programming and linear programming skills are used for imitation. After the newly designed model is proved feasible, the challenges those S powers Grid Company will face are to be analyzed and predicted. Finally, some suggestions are provided to help S power Grid Company find the profit chances in the future electricity market. It is found in this paper that the changes of the transaction and pricing mechanism impact the profit model and competency of S power Grid Company tremendously. In order to survive in the fiercely competitive market, S power Grid Company needs to(1) control the operational costs well in finance;(2) coordinate the volume and price in the market;(3) participate in marketing activities;(4) manage the brand well;(5) prevent operational risk, and(6) prevent excessive loss of talents in operation.