Financial Risk Assessment Of Biomass Power Generation Business

Rapid economic development has brought the energy consumption and environmental degradation. As a clean energy, biomass energy development and utilization make the world’s attention. From our point of view, content rich biomass, biomass energy development and utilization of China’s energy development is of strategic importance. At present, the development and utilization of biomass energy for power generation in China is still in the stage of policy support. In the process of marketization, biomass production and operating is under the influence of a number of internal and external risk factors, which is through corporate finance data reflected and the financial risks of enterprise. Financial risk is the business conditions "barometer".The analysis and evaluation of enterprise’s financial risk and its influencing factors can help managers understand various uncertain factors in enterprise production and management which can strengthen enterprise risk management and enhance the level of internal control.Therefore,this thesis is of great theoretical and practical significance.Based on the theory of financial risk and the research and in-depth analysis of the biomass power plant, this thesis sums up biomass electricity generation the influence factors of enterprise’s financial risk. According to the biomass power generation enterprise finance risk factors, this thesis selects financial and non-financial evaluation indicator to build biomass power generation evaluation index system of enterprise’s financial risk. Taking enterprise performance evaluation standard value for criteria application of efficacy coefficient method, it standardizes the evaluation index value from all index standardization points. Based on the fuzzy analytic hierarchy process to construct enterprise finance risk evaluation model, each index is calculated by weight and value-at-risk.Then it gets the total risk value and its corresponding risk levels.Finally, this thesis uses the case of H biomass power plants to evaluate its financial risk. By calculation, the finacial risk of this enterprise is medium grade. Among them, the major financial risk factors for enterprise’s operational risks is from operation management.So this company should pay attention to the potential of biomass power generation management, strengthen the scientific and effective management, enhance operational capabilities and effectively avoid risk.