Research On Control Of Large Thermal Power Enterprises Diversification Risk

In recent10years，so along with the electric power system reform and the adjustmentof national energy policy that Power generation enterprise are facing increasing businessrisks in China. Since April12,2002, the State Council issued power system reformsscheme that has separated that power plant and power grid, and Re-combination of powergeneration companies and power grid companies and so on. After recent years of reformand development, Breaking the monopoly of the electricity industry, Power generationcompanies have been completely sent to the market and moving towards a competitive. Atthe same time, the State in the past20years, vigorously promote the development of newenergy industry and developed a new energy and renewable energy development strategy,thermal power embarked on a large instead of small and thermal power co-generation ofthe Road, Large-scale construction of thermal power has basically come to an end, wind,solar, hydro and other renewable energy sources into the large-scale development andconstruction period, more and more social capital to enter the power generation market,brought electricity construction investment diversification, the one has brought the rapiddevelopment of China’s electric power industry, on the other hand, increased competitionin the electricity sold in China market. In recent years, coal and electricity prices upsidedown, the obvious contradiction between thermal-based power generation companies arefacing unprecedented challenges. Single generation businesses sometimes can notguarantee the profitability of power generation companies, in order to protect profitability,making power generation companies to moderate non-related diversification.Diversification of business distributed enterprise risk, improve operational security,transferred to the good prospects for emerging industries, and help to promote thedevelopment of the original business of the enterprise, etc.This article uses the theory of modern portfolio, economics, analysis of China’s powergeneration business risk, project selection in the diversification process.First of all, China’spower enterprises diverse motives and risks; Secondly, it discusses the method and modelof corporate diversification risk control theory; Finally, the use of backpack model, powergeneration enterprise project selection methods, and on this basis, analysisGD Powercompany project selection problem.