A Survey on Electricity Procurement Decision-making and Risk Management for Electricity Sale Company

Releasing the retailer side of electricity market is the key point in new electricity market reform in china, after which various electricity sale companies have been established all over the country. Electricity sale companies will replace power supply companies to buy electricity from the market and sell it to users. Therefore, multi-electricity procurement decision-making and risk management for electricity sale companies has become a new hot research area in China. In this paper, the main difference between the electricity sale companies and big consumers or power distribution companies is analyzed from the following four aspects, such as type, operation mode, core business and profit, and the existing researches on multi-electricity procurement and risk management for electricity retailers both domestically and overseas are classified and concluded. Based on above analysis, the possible further research direction in electricity procurement and risk management is presented for electricity sale companies by considering the possible market progress of development in China and corresponding value-added service.