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This book describes recent developments in the power and energy markets that are driving major changes in the generation mix, network requirements and customer engagement. The industry now faces new challenges associated with global warming and escalating demand from developing countries such as China and India. The effect of government interventions to manage changes and to meet emission targets has resulted in an industry that is neither a free market nor centrally coordinated and often lacks strategic direction. The uncertainty has resulted in a dearth of investment in generation and unprecedented low margins of spare capacity. This book provides an analysis of the changes and quantifies their impact. It reviews strategic decisions in the management of changes in the sector and aims to identify the optimal way forward to meet the triple objectives of security, affordability and sustainability with low emissions. It focuses on the economic aspects of initiatives to provide insight into their interaction. It also provides insight into the opportunities in the sector to the many new potential players. Power Market Transformation is based on the most recent developments in the energy sector and brings together all the initiatives that interact physically through the common network and financially through the energy market. It draws on extensive international experience in all sectors of the industry to bring clarity to the complex interactions. It includes worked examples and questions providing a basis for study and examination, and will be of value to engineers, economists, researchers and students in all countries undergoing a transition.

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