Multi-dimensional Risk Assessment Framework Based on Interrelation in Electricity Market Operation

In recent years, research in China on risk prevention in the electricity market under the new power system has been relatively lagging, and there has not yet been a truly effective and systematic body of research findings. At the same time, some business departments of China's electricity trading centers, such as the Market Compliance Department, mainly focus on ensuring compliance with behavioral norms among market participants to maintain market order. However, they do not monitor and evaluate the overall operation of the market as extensively as electricity market supervision departments do to improve operational efficiency. This article takes the Guangdong electricity market as the research object. Starting from the requirements of national governance modernization, it introduces the concept of the alignment between Energy and Electricity and the socio-economic development into the performance evaluation of electricity market operation. Firstly, the routine market monitoring indicators of the electricity market are divided into three parts: market power monitoring, market performance monitoring, and market deviation monitoring. Secondly, the fuzzy analytic hierarchy process is used to measure the relevance of routine monitoring indicators to the four major characteristics of the electricity market. Then, based on principal component analysis-entropy weight method, a comprehensive evaluation model of Electricity- Energy- Economy-Environment alignment is established. Finally, a multidimensional market risk assessment framework based on market operation alignment is obtained.