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Power Generation Investment in Electricity Markets

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.

This is an extract, full report available as PDF download