Discussion about the development of futures market for electricity

Based on the characteristics of futures commodity,the paper analyzes the feasibility of electric power as futures commodity and the necessity to introduce electricity futures into electricity market.According to the data of California electricity market,it is found that electricity futures can reduce the price risk in restructured power systems effectively.Finally,the development of the electricity futures in China is discussed.It can be anticipated that with the establishment and development of electricity market,the electricity futures will be introduced in China.Therefore,it is necessary now to study electricity futures and various problems which may be occurred when electricity futures is introduced in China.