Power Market Development Trend and Genco Challenges

摘要

In this paper, we will exam the development of power markets from the viewpoint of a generation company (Genco). To a certain degree, generation companies are the very targets of restructuring, since the economic benefits of deregulation are expected mainly from the unbundling of generation companies from vertically integrated utilities and the subsequent productivity improvement in these new companies. It is therefore understandable that the generation companies, in a new competitive power market, face the greatest challenges. For electricity markets around the world, after more than a decade of development, the path forward remains unclear. The problem seems to be worst for a generation company. By studying issues faced by generation companies around the world, it is not difficult to notice a set of common concerns. These concerns can be summarized by three questions. 1) Where are we? 2) What is the most likely market format for a specific region? 3) How can a generation company become more competitive? We intend to address these questions through the following sections, 1. Market Development Path - "Where are we?" 2. Basic Formats of Power Markets - "What is the most likely market format for a specific region?" 3. Challenges facing a generation company - "How can a generation company become more competitive?" Instead of in-depth analysis of one particular problem, only high-level issues are touched upon in this paper, the purpose is not to recommend solutions but to raise awareness.