Design of power insurance products based on risk management in spot market

摘要

To future deepen the electric market reforms, it is a need to strengthen market transaction risk management. In the electricity spot market, clearing price fluctuate rapidly with large fluctuations. Market participants may suffer significant losses due to improper trading strategies or unexpected failure to complete the contract. However, the existing risk control methods can't be effective and sustainable, which still base on administrative means. Therefore, it is necessary to study risk management methods which is matched with the construction of power market. This paper proposes a series of power financial insurance products to alleviate risks faced by market participants. First, the transaction risk in spot market is determined to be insurable, which is judged by the analysis of the scope and composition of the insurable risk. Second, power insurance products such as market income insurance, market price insurance and accident insurance were designed, which also been explained in detail by case studies. Finally, an illustrative example is proposed to demonstrate the risk aversion effects of insurance products and financial derivative products, thereby proving the validity and effectiveness.