The impact of deregulation on the theory and practice of investment appraisal is addressed in this comprehensive treatment of the restructuring of the electricity supply industry. Demonstrating that the classical approach to generation investment appraisal is no longer valid, a new approach is developed using three economic models to represent differing market conditions. Highlighting the impact on the organisation of the utilities and their suppliers, Electricity Markets offers essential advice for survival in the deregulated environment worldwide. Features include: * Examination of the alternative market structures and their mechanisms * Methods for investment appraisal and market simulation to support the assessment of market strategies by generators, distributors and suppliers * Use of game theory to predict market behaviour and competitive interaction * Coverage of the analytical and technical aspects of grid deregulation plus a look ahead to the long term productivity and structure of the industry * Discussion of the regulatory framework and its limitations in improving efficiency and encouraging optimum levels of investment This timely book will enlighten a broad audience ranging from utility managers and suppliers involved in deregulation to consultants and academics concerned with managing change.