This book responds to the opening up of electricity markets to
competition, which has completely changed the nature of power
generation. The building of new generation and transmission
capacity and the setting of the energy mix between nuclear, gas and
renewable resources are mainly left to private initiative and
investors. The authors and the editor of this book explore whether
or not market forces offer a sustainable future for electricity
generation. They employ economic theory and method to answer
questions such as: Will the market be able to ensure adequacy of
generation capacity and security of supply? Can price signals from
future electricity markets lead to an acceptable level of
investment for society? How can market and public intervention
combine to deliver the right signal to invest in expanding and
reinforcing the grid? How can two complementary investments such as
the building of power plants and the expansion of the network be
coordinated successfully? With a focus on the EU and US liberalised
electricity markets, these questions, and others, are answered by
leading thinkers in the field, and offer a much-needed assessment
of the long-term consequences of liberalisation.
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