Boom and Bust in Power Plant Construction: Lessons from the California Electricity Crisis

摘要: This article argues that competitive electricity markets are prone to the same cycles of boom and bust appear in commodity a specialized industry like real estate. The then demonstrates how might western system using computer simulation. A “business as usual” simulation shows west be at crest building on verge wholesale prices. Without fundamental changes markets, next construction would come too late prevent decline reserve margins reappearance price spikes. If we continue with current market structure, run risk exposing another round reliability alerts concludes suggestions for alternative structures California discussion whether these apply other countries engaged restructuring.