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Pricing of sending hydroelectricity to grid in China

GU Wei-zhong~1, LIU Lan~2(1.School of Business,Beijing Institute of Machinery,Beijing 100085,China;2.South Bank University,London SE1 4YB,England)  
Electric power industry in China is now performing an innovation of separating the powerplant from grid and bidding for grid. It is a very critical step in the process of market-orientation of electric power industry. But the innovation on price of sending electricity to grid will involve some complicated and difficult problems in the innovation of electricity price.lt will also play an important role in realizing market-orientotion in the electricity power industry. A model to forecast the price of sending hydroelectricity to grid is set up according to the financial condition and binary electricity price in order to provide some helpful ideas for innovation of electricity in China.
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