Fuzzy multi-criteria decision-making method-based operational assessment of Chinese electricity markets

The evaluation of the electricity market is crucial for fostering market construction and development. An accurate assessment of the electricity market reveals developmental trends, identifies operational issues, and contributes to stable and healthy market growth. This study investigated the characteristics of electricity markets in different provinces and synthesized a comprehensive set of evaluation indicators to assess market effectiveness. The evaluation framework, comprising nine indicators organized into two tiers, was constructed based on three aspects: market design, market efficiency, and developmental coordination. Furthermore, a novel fuzzy multi-criteria decision-making evaluation model for electricity market performance was developed based on the Fuzzy-BWM and fuzzy COPRAS methodologies. This model aimed to ensure both accuracy and comprehensiveness in market operation assessment. Subsequently, empirical analyses were conducted on four typical provincial-level electricity markets in China. The results indicate that Guangdong’s electricity market performed best because of its effective balance of stakeholder interests and adherence to contractual integrity principles. Zhejiang and Shandong ranked second and third, respectively, whereas Sichuan exhibited the poorest market performance. Sichuan’s electricity market must be improved in terms of market design, such that market players can obtain a fairly competitive environment. The sensitivity analysis of the constructed indicators verified the effectiveness of the evaluation model proposed in this study. Finally, policy recommendations were proposed to facilitate the sustainable development of China’s electricity markets with the objective of transforming them into efficient and secure markets adaptable to the evolution of novel power systems.