WIT Press


EVALUATION OF ECONOMIC RISKS FOR POWER-GENERATING COMPANIES

Price

Free (open access)

Paper DOI

10.2495/RISK180111

Volume

121

Pages

9

Page Range

125 - 133

Published

2018

Author(s)

ALEXEY Y. DOMNIKOV, EKATERINA ANTIPOVA, LIUDMILA DOMNIKOVA

Abstract

The paper presents the results of a study on the economic risks affecting the competitiveness of power-generating companies. A methodical approach to the diagnosis of economic risks has been developed by the authors. The possibilities are estimated by using competitive advantages of various generating technologies on the basis of the method of decomposition of factors, which characterize economic risks. The process of development of power-generating companies involves the solution of complex problems related with the reliable power supply to consumers and the increase in efficiency of energy generation. The problem of increasing competitiveness requires the development of a special system for diagnosing the economic risks for power-generating companies. This implies forming a knowledge base necessary for the subsequent evaluation of the level of influence of economic risks on the competitiveness of energy sources. The approach proposed for diagnosing economic risks proposed is based on cluster and discriminant analyses. It allows determining the characteristics of energy-generating technologies that will give a high level of competitiveness. As a consequence, it becomes possible to study changes in the business environment and profitably take advantage of the potential advantages of the market. The evaluation of economic risks leads to assessing the level of their impact on the prospects of the presence of new energy-generating sources on the local energy market. It also permits analysis on the feasibility of exploiting their competitive advantages. The approach proposed is aimed at improving decision-making in conditions of uncertainty, minimizing economic risks and increasing the competitiveness.

Keywords

power industry, economic risks, efficiency, competition, strategy, reliability, mathematical economic models