Based on LMP to Help New Energy to Avoid Market Risk CFD

With the proposal of “carbon peaking and carbon neutrality” target, the proportion of new energy in China’s power generation side is increasing, and it is a general trend for new energy to enter the market and participate in trading. However, there is a big risk for new energy to enter the market, and it is necessary to seek an effective way to avoid the risk and promote the new energy to enter the market, which is a hot and difficult issue in the current research. This paper firstly analyses the risk of high proportion of new energy market transactions; proposes CFDs to help new energy avoid the risk of entering the market, including the multi-factor linkage of government-authorized CFD and the market-based CFD with LMP, and modelled the trading of different types of marketable CFDs; Finally, an example is given to verify the validity of the model and the feasibility of CFDs.