A Performance Evaluation Framework of Electricity Markets in China

With the construction of electricity markets in China, market performance has become a growing concern. New approaches are required for performance evaluation in a profit-oriented open market. In this paper, a feasible performance evaluation framework of electricity markets is proposed. Firstly, an index-based criterion is established to evaluate the market performance in social, environmental and economic aspects. Next, a mathematical evaluation approach is presented based on the proposed index-based criterion. The analytic hierarchy process (AHP) and the improved entropy weight method (IEWM) are applied to measure the weights of indices. Finally, a ranking strategy is introduced to quantify the evaluation results based on the improved technique for order preference by similarity to an ideal solution (ITOPSIS) and improved gray correlation (IGC) method. The proposed evaluation framework can be employed to assess the daily performance of electricity market operation. Furthermore, it can also be utilized to compare the performance of different electricity markets in China.