Data envelopment analysis of the environmental effect of electricity interconnection on regional electricity market

The development of power industry is closely related with the environment. In the regional electricity market (REM) of China, the electricity interconnection between provinces will change the original structure of electricity supply and energy consumption of every province and the entire region, and then change their environmental conditions. This paper analyzes the influence of importing or exporting electricity on local environment, and uses the method of data envelopment analysis (DEA) and the idea of grey relational degrees putting forward the evaluation method of, environmental effect of electricity interconnection. The evaluation should be carried out from two angles such as major electric importing areas and major electric exporting areas. It can confirm the impact of the electricity interconnection between provinces on environment,and key influence factors. Through the case study of the southern regional electricity market, the environmental, effect has been illustrated and the final conclusion is impersonal and logical operation on the whole. The results show the reform effects of electric power industry of China in terms of environment.