Information entropy based fuzzy optimization model of electricity purchasing portfolio

With the development of electricity demand side market, large consumers have more electricity purchase choices, in the same time have to face the risk of electricity price fluctuation on different markets. In order to measure and hedge the risk reasonably, this paper introduces information entropy as the measure to risk in electricity purchase, by aid of fuzzy optimization, linear membership function is adopted and the optimal electricity purchasing portfolio model is established according to the given expected target and tolerance. Test results show that information entropy can overcome lots of shortages in the method that adopts variance as risk measure; the electricity purchase strategy given by fuzzy optimization has good consideration both on price and risk.