Risk evaluation and management mechanism of green electricity market based on multi-dimensional cloud model

Abstract

In the process of continuous promotion in the green electricity market, various risks have emerged due to the inherent uncertainty and complex trading environment of the market. Evaluating and controlling the risks through a multi-dimensional evaluation is crucial for the smooth and healthy development of the green electricity market. This work proposes a risk assessment method for the green electricity market based on the multi-dimensional cloud model. First, the comprehensive indicator evaluation system is established for both pre-transaction and post-transaction dimensions by analyzing the operating mechanism of the green electricity market. Second, each dimensional cloud is formed by the evaluation clouds of all indicator levels. The comprehensive risk level cloud is generated based on the indicator values and the evaluation clouds of each indicator. Finally, the sources of market risk are identified, and the corresponding risk management methods are proposed on the basis of the risk evaluation level and membership degree of each indicator. The case study results demonstrate that the proposed method can accurately evaluate and reduce the potential risks existing in the green electricity market through the two-stage detection mechanism.