Power generation investment in electricity markets.
Contributors: International Energy Agency.; Organisation for Economic Co-operation and Development.
Series: Energy market reform
Publisher: International Energy Agency/Organisation for Economic Co-operation and Development
Published: 2003
Place of publication: Paris
Language: eng
Number of pages: 99
Subjects: Electric Utilities.; Electric power production.; Investments.; Marketing.; Risk.; Hedging (Finance)
Description: This report looks at how investors have responded to the need to internalise investment risk in power generation and how these responses have affected the organisation of the power sector and technology choices. This study looks at several cases of volatile prices in IEA countries’ electricity markets, and finds that while market prices can be a sufficient incentive for new investment in peak capacity, government intervention into the market to limit prices may undermine such investment.
Notes: Includes bibliographical references (p. 95-99).