Method for Determining the Index Evaluation and Weighting for the Transition Period of Electricity Retail Market by Considering the Correlation of Indexes

In order to cope with the increasing diversification of the electricity retail market, the changes and the new characteristics of the market are analyzed, and the risk assessment index for the transition period of electricity retail market is established in this paper. By considering the effect of correlation among multiple indexes on weighting index, Schmidt Orthogonalization is used to decouple the correlation among indexes and then the deviation standardization and index mapping are determined to set up judgment matrix that is a key part of analytic hierarchy process (AHP). In addition, AHP is applied to calculate index weight. In the end, the evaluation result of each index is used as sample data, and proposed weighting determining method is applied to decouple correlation of indexes and set weighting of each index. Results show that the proposed method can effectively determine the important risk index and its weight. This method will be applied to risk assessment for the transition period of the electricity market.