Impacts of transition of economy on electricity market construction in China

Some impacts on electricity market construction in China during transition of economy are analyzed, and the competitive transition mode and relative risk prevention measures are proposed. It indicates that, since Chinese electricity market owns some specific realities such as market power of state-owned enterprises, government macroscopically economy regulating, electricity industry being in the fast period of expansion, energy saving and environmental protection and so on. During the transition period of economy, electricity market construction in china should have some predominant characteristics compared with other countries. At the same time, the transitional competition mode is proposed, and a risk prevention framework has been advanced includes three aspects: power system security, market power and market participants' management risk. Furthermore, this paper proposes that hedging can be an effective means for electricity market in transition period of economy.