Electric Power Technology

Opportunities and Challenges of Competition

International Energy Agency

How will the introduction of electricity market competition affect power generation and transmission technology? Which technologies are most likely to receive a push from competitive markets? These are the questions examined in this review, which considers a wide range of options in both generation and transmission. Competition strengthens the search for the most cost-effective technologies. All electricity generation technologies are affected: those for existing and new plants as well as those for improving capital and operating efficiency. In existing plants, reliability, life extension, operating flexibility and demand-side technology are some of the major factors of change. In new plants, gas turbines are set to continue their growth, but there is still a place for conventional steam and other power plants. New government policies for technology support and environmental protection also have a role in evolving technological choices when competition is introduced.