This paper contrasts the traditional (i.e., regulated) method of generation planning with the new (i.e., competitive) method that is called "asset valuation". The traditional method was based on adding generation to reach a reliability target, which was often measured by the planning reserve margin. In the present competitive environment, generation is added when the owner of the generation asset believes that the generator will produce an adequate return on investment Both methods are described briefly, with emphasis on asset valuation. Then results from asset valuation are reviewed to evaluate the effectiveness of the standard of generation adequacy.
展开▼
