Research on Credit Risk Transmission and Simulation in the Regional Power Market

Mechanism of credit risk transmission in the regional power market is an important issue in the current risk management of power trading market. This paper purpose a multi-order credit risk propagation model based on IIM (Inoperability Input-output Model) to analyze the propagation mechanism of multi-order credit risk in the regional power market. Meanwhile we conduct simulation analysis, supposed the discrediting behaviors of some nodes of the regional power market, which leads to the related ability loss or economic loss of other market nodes in the power market system. On account of the simulation results, we propose some protective measures of the relevant nodes in the regional power market when different enterprise nodes suffer from credit risk events.