Credit Evaluation of Electricity Market Participants Based on Game Theory Weighting GRA-TOPSIS

A reasonable and objective credit evaluation mechanism is a pivotal component in the construction of a credit management system for power market participants in the electricity market. Given the current transitional stage of electricity market reform in Yunnan, the existing credit evaluation mechanism faces challenges in providing reasonable and objective assessments and risk management for market entities. Hence, credit evaluation model of electricity market participants based on game theory weighting GRA-TOPSIS is proposed. First, a credit evaluation indicator system that covers willingness to honor contracts, capability to fulfill contracts and performance in fulfilling contracts are established. Particular emphasis is placed on the trading behavior of power market entities in the selection of indicators, which aims to achieve a linkage between behavior and credit management. To obtain a comprehensive weight, the Game Theory (GT) approach is proposed, which combines the subjective weights derived from the Fuzzy Analytic Hierarchy Process (FAHP) with the objective weights derived from the Coefficient of Variation method (CV). Then, the quantitative evaluation framework for the credit level is developed by integrating the grey relation analysis (GRA) with the technique for order preference by similarity to ideal solution (TOPSIS). Finally, Case studies on the credit evaluation data of Yunnan Provincial electricity sales companies in a specific month verify that the proposed model can provide an objective and reasonable evaluation of the credit levels of market participants in the changing power market environment.