Pricing of Power Market Security Services Based on Risk Management

With the development of the power industry, the power grid has gradually become a huge interconnected system, in order to economically and rationally utilize various resources, while improving the reliability of the operation of the power system, but high returns are accompanied by high risks. On the one hand, with the emergence of large-scale interconnected power systems, the structure and operation mode of the system are becoming more and more complex, especially the emergence of weak links between long-distance high-power transmission lines and systems, adding accidents and causing large-scale blackouts. On the other hand, with the emergence of large-scale interconnected power systems, somewhere failures often affect the entire system. Therefore, research on safety issues has always been a focus of power system research, and security has always been used in power system operation. At the top of the list, but with the deepening of the power market reform, the security of the power system is increasingly under pressure from economic interests. This paper attempts to explore the market model and pricing of power market security services from the perspective of risk management. Theory 1.1 The concept of risk is an objective state of existence, and the occurrence of its losses is uncertain. This definition indicates that the mathematical expression of risk, objectivity, loss and uncertainty is: where L is the accident loss; For the probability of accident; R is the magnitude of the risk, that is, the mathematical expectation of the loss of the risk accident value.

Risk can be divided into basic risk and individual risk according to its origin and influence. Basic risk refers to the risk caused by non-individual, or at least the factors that the individual cannot resist or change. The loss usually spreads to a large extent, such as lightning strike. , transmission line failures, power system instability, and other risks that exist in the power network. Individual risk refers to the risk caused by individual factors. The loss usually only affects the scope of an individual, such as fires, user equipment failures, and other risks that exist within the individual. Since the underlying risk is not under the influence of the individual and the impact of the loss is large, the basic risk should be dealt with by the collective rather than by the individual. Since the individual risk is usually considered to be within the scope of the individual, it should be Insurance and other tools to deal with this type of risk 1.2 Risk management Risk management is through risk identification and risk assessment, and based on this, a reasonable and comprehensive use of a variety of management methods, technical means to comprehensively and effectively control the risks involved in the target, In order to achieve safety with a minimum cost to achieve the goal. The measures to deal with risks are: a avoidance by preventing the risk from being prevented from moving away from the risk event. The aim is to reduce the probability of an accident.

Impairment. The aim is to minimize the loss of accidents.

Self-retained. After a comprehensive balance, it is decided to take risks and transfer. In a certain way, the risk is transferred to another entity. For example, if the insurance is purchased, the insured will transfer the risk that may occur to the insurance company.

The above measures can be summarized as pre-accident prevention, impairment in accidents and remediation after accidents. Among them, avoidance and prevention are preventive measures before the accident, that is, in the case of choice, avoid high-risk programs and choose low-risk programs, and the focus of prevention is to use various preventive measures before the accident to reduce the probability of accidents. The point is that when the accident occurs, various measures are taken to prevent the accident from further expanding to reduce the accident loss. The retention or transfer depends on the income of 114-2200153 VCademiC J awake alElectoniC oil! A cost-effective 13. Power Market column. Tang Zhenfei and other risk-based power market security services pricing 3.1 Power system security issues is a risk nature of the problem 1 threatening Li due to a random 4 and feblish equipment damage A and economic interests of the staff lost, reimbursed. Comprehensive risk management should be the comprehensive application and optimization combination of these measures to minimize the total risk cost. 1.3 Insurance and social insurance are one of the measures for risk transfer, and also an important risk countermeasure. Insurance is divided into commercial insurance. And social insurance two major categories. The premise of commercial insurance is that there are a large number of independent and identically distributed risk events. Commercial insurance companies use the law of large numbers by concentrating the risks, so that the entire risk set presents a defamatory commercial insurance. The risk is transferred from the insured to the insurance in the form of a contract. The company, the majority of people to share the loss of a few people, such as property insurance, life insurance, etc. due to the impact of the basic risks, the risk events present a strong commonality, so the entire risk set is very random, does not meet commercial insurance The preconditions, so the general commercial insurance company does not cover the basic risks, the basic risks should be co-administered by the collective, which creates the necessity of social insurance, and only social insurance has the conditions to apply comprehensive risk management within the scope of the whole society. The method effectively controls the basic risks. Social insurance is non-profit. It is enforced by national legislation and all members must participate in order to ensure social stability, such as unemployment insurance disability insurance. Social insurance usually collects premiums in the form of taxes, operated by a non-profit organization designated by the state in a monopolistic manner. It is characterized by non-profit, mandatory and universal security.

2 Public goods theory There are private goods and public goods in economics. 1J. Private goods have two characteristics in consumption and use: First, competitiveness, if someone has consumed a certain commodity (service) , it reduces the amount of goods (services) consumed by others; second, it is exclusive. If someone has consumed a certain product (service), then others can no longer consume the goods (service) market at the same time. The mechanism can only be effectively used in the case of private goods. Public goods refer to items that are not competitive or exclusive. For example, broadcast television, roads, power system stabilizers, etc., due to the special attributes of public goods, consumers tend to Underreporting or concealing the consumption of public goods, and even wanting to be a “free rider”, it is impossible to get the correct price-demand curve from the market, so the production and consumption of public goods cannot be solved by individual decision-making in the market. The government must assume the task of providing public goods. The general government collects funds through taxation, through cost-benefit comparison. Social insurance is one of the ways to provide public goods.

3 Re-recognition of power system safety problems The normal operation state has a certain degree of adverse impact, and may even lead to accidents such as power outages, system loss, and equipment damage. How much influence a disturbance has on the power system depends on the nature of the disturbance, its intensity, where it occurred, the duration of the rush, and the preventive and protective measures of the power system and the ability of the system itself to withstand the disturbance. The safety issue is to study how disturbances affect the power system, how to prevent and mitigate such adverse effects, and how to improve the ability of the power system to withstand various disturbances, as evidenced by various safety measures for safety analysis of power systems and disturbances such as safety robots. The occurrence is random and belongs to a type of risk. Therefore, the safety problem of the power system is the risk of the power system being insecure. Because the power system is a huge interconnected system, the disturbance at a certain place often adversely affects the entire system. Therefore, a large part of the power system security risk is a basic risk category and must be resolved from the perspective of the entire power system.

The process of power system safety management is divided into the following three aspects: a. Pre-accident prevention First, through the expected accident analysis, the potential factors that may cause disturbance are prevented and controlled, in order to avoid the disturbance as much as possible. This type of preventive control measures has reasonable rules and regulations, static and dynamic anticipation accident analysis, dispatcher's power flow calculation, lightning protection, anti-missing device and other accidents. For those disturbances that are not eliminated by preventive control, these disturbances are isolated by means of protection devices so that they cannot be further expanded, and for disturbances that are not completely successfully isolated and for small disturbances that do not require isolation, the power system itself is used to withstand disturbances. The ability to absorb such measures to improve the system's ability to withstand disturbances includes spares, stabilizers, PSS, and so on. If the disturbance exceeds the capacity of the system, it will lead to systemic accidents. At this time, only emergency control measures are taken to remove the fault area or equipment over a large area to avoid the collapse of the whole system. After the remediation accident occurs, the fault should be eliminated as soon as possible to restore the system operation. This type of measures include generator restart, line re-entry and so on. In addition, economic compensation must be made to market members who suffer losses from accidents. Loss of accidents, including loss of economic benefits, is less considered in traditional power systems. However, the power market has put forward this requirement. Research, a number of specific measures have been developed to prevent impairments and remediation, and the safety of related automatic devices. The safety of power systems should evolve from a simple safety issue to an optimal balance of safety and economics that combines these safety measures. Comprehensive security risk management.

3.2 Power System Safety Indicators Power system security can be quantitatively described by the size of the security risk: the more secure the system.

3.3 Power system security services have the nature of public goods. Because a large part of the power system security risks are basic risks, the security services of power systems are often focused on ensuring the security of the entire system at the system level. Every user is protected (although some users are not even aware of the existence of risk), otherwise the failure of somewhere often affects the entire system, so that every user in the system is affected, so the security service is the system. All users service, each user is fairly protected by the security service, so the power system security service has the nature of public goods. According to the public goods theory, the market mechanism can not effectively provide public goods, must be collectively from the entire system The angle determines the optimal number of public goods to offer. This paper envisages that an independent agency (securityoperator, reduced to SO) provides security services for the power system. Its function is to comprehensively adopt various security measures for the power system based on the security assessment of the system and the appropriate market operation. Security risk is fully managed to ensure the safety of the power system with minimum cost. 4 Power market security service market model and optimal pricing 4.1 Market model of power market security services Because power system security issues are a risk nature issue, and a large part The security risk is of a basic risk nature, so SO can provide a security service SO (or a monopoly professional insurance company under the control of SO) in a social insurance-like manner. According to the security assessment of the power system, the security risk is comprehensive. Management, optimize the allocation of funds for prevention, derogation, and remediation, and ensure the safety of the power system with the lowest total premium (safety service fee).

Since the security service has the nature of public goods, each user of the system accepts the security service fairly, so the security service fee (total premium) should be averaged according to the total amount of the system to form a user-oriented premium. In practice, the user's electricity bill can be used. One of the insurance premiums for China and Canada, the premium is charged at the same time as the electricity fee is charged.

With security insurance, the security risks of the power system are concentrated on SO. After paying a certain premium, members of the power market do not have to worry about the losses caused by security risks, so they can concentrate on management and pursue the greatest economic benefits.

4.2 Insurance coverage and insurance standards In principle, SO only requires risks that fall within the basic risk category, and risks that belong to individual risk categories (such as user equipment failure generator failures, etc.) are voluntarily insured by the user to SO or resolved by themselves.

Due to the nature of the user, the economic loss caused by interrupting the same amount of power is not the same. If the actual loss of the user is used as the insurance standard, the user with a large loss has a high insurance standard, and the premium paid accordingly is also high, and the contribution to the system security service is large. However, due to the nature of the public goods of the security service, users who pay less premiums are paid. Still enjoying equal access to security services, it is easy for users to under-report accident losses, so as to pay less premiums to enjoy the "free service" situation, so should take an appropriate user to interrupt the unit's economic loss level I as a unified insurance Once the standard is interrupted due to the power system, the user will get the financial function of "Q (Q is the user's interrupted power) economic compensation, the non-profit organization power market security management lblish is done because of the size of the premium and The insurance standard is proportional to the L, the more the bookmark3 is, the choice of I should be close to the loss level of the general user, so that for the more important users, the actual power interruption loss will be greater than the insurance standard I, and the excess should be included in the individual risk. Category, by the user voluntarily insured to so or solve it on its own The more users are compensated for the interruption of power supply, but it also means that the higher the premium collected, the higher the premium for the average user, especially the unimportant user, will cause unnecessary economic burden and affect its healthy electricity consumption. Select an appropriate insurance standard as a unified insurance standard, and treat the demand beyond this standard as its individual risk, which not only ensures the universality of the protection, but also meets the requirements of different levels of users. 4.3 Economic Benefit Analysis of Security Measures The adoption of each security measure will inevitably weaken the security risk to a certain extent. The economic benefit of the security measure is: the expected compensation amount of the system accident loss; Cj is the cost of the safety measure j, including the fixed device. Cost and operation and maintenance cost; P'j-, pirj+ are the probability density of the risk accident Rr before and after the safety measure j in the state Xi; Qrj-, Qrj+ are respectively in the state X before the safety measure j is adopted After the risk accident Rr occurs, the power is interrupted; I is the insurance standard. Obviously, when selecting safety measures, priority should be given. Considering the high economic efficiency measures, according to the economic benefits of the measures, the safety measures are arranged into the safety measures priority list for selection and implementation. Obviously, the safety measures without economic benefits or negative economic benefits should be eliminated. 4.4 Safety Service Optimal Pricing In determining insurance standards After I, the SO takes the security measures from the priority list of the security measures and then takes them out. The assumption is that the first m security measures are implemented in order. The total economic benefits of the security measures are: the total amount of compensation; Km= + Cj, SO The total expenditure of safety services after the implementation of the first m safety measures in the safety measures priority list, which consists of two parts, jade, + is the function of using the safety measures to give priority to the compensation amount expressed as the total cost of safety measures C, then: The above optimization problem is minK(C), and the optimization condition is dK(C)/dC=−1, so that the total capital investment of the optimal safety measure and the total expenditure of the minimum safety service can be obtained.

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