Abstract
Electricity retail marketization reform is in progress in China, and many electricity retail companies (ERC) have been founded. The comprehensive evaluation of business risk for ERC can help effectively manage business risk and reduce risk loss, which is vital for its healthy and sustainable development. In this paper, a new hybrid multi-criteria decision making (MCDM) method integrating the Bayesian best-worst method (BBWM) and improved matter-element extension model (IMEEM) is proposed for business risk evaluation for an ERC. The latest group MCDM method, namely the BBWM is employed to determine risk criteria weights, and the IMEEM is used to rank the business risk of ERC. The evaluation index system is built including three aspects of economic operation risk, marketable risk and political risk. The business risk of ERC in China is evaluated by using the proposed MCDM method, and the result shows the current business risk belongs to ‘High’ grade and closer to ‘Very High’ grade more. The proposed MCDM method for business risk evaluation of ERC is effective and practical, which can provide references for risk management and sustainable development of ERC.
Highlights
Market-oriented operation is the main direction of electricity industry reform and development in the world [1,2]
One contribution of this paper is to provide a new view for business risk evaluation of electricity retail company, which focuses on economic operation risk, and considers marketable risk and political risk
Another contribution of this paper is to propose a new hybrid multi-criteria decision making (MCDM) method for business risk evaluation of electricity retail company, which combines Bayesian best worst method (BBWM) and improved matter-element extension model
Summary
Market-oriented operation is the main direction of electricity industry reform and development in the world [1,2]. Current studies in this field mainly focus on economic operation risk, so it can be said this paper extends the business risk scope of electricity retail company which considers multiple sources of risks related to electricity retail company business Another contribution of this paper is to propose a new hybrid MCDM method for business risk evaluation of electricity retail company, which combines Bayesian best worst method (BBWM) and improved matter-element extension model. The BBWM is used to determine the weights of business risk criteria which can consider the preferences and opinions of multiple decision makers, and the improved matter-element extension model is employed to rank the overall business risk level of electricity retail company. The detailed backgrounds of these two methods are introduced in the followings
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
