|Title||Planning, Markets and Investment in the Electric Supply Industry|
|Publication Type||Conference Paper|
|Year of Publication||2012|
|Authors||Richard E Schuler|
|Conference Name||2012 45th Hawaii International Conference on System Sciences (HICSS)|
|Conference Location||Maui, HI, USA|
|Keywords||CERTS, electricity markets, power system economics, power system planning, reliability, reliability and markets, RM11-002|
Effective planning of the complex electricity supply network is essential because of the long lead times required for the development and placing in service of large new generators and transmission lines. Yet much can change while this physical process is being undertaken in terms of costs, prices, technological innovation and public policies, particularly about the environment and fuel diversity. The essential nature of well-constructed markets in yielding accurate, up-dated information about the likely effects of these many factors, as well as the use of advanced planning tools like "real-options" analysis are described, together with how these tools should be carefully staged and integrated with the planning process.