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Power System Planning under Electricity Spot Pricing

There is a reluctance to discuss power system planning under spot pricing. The subject is either seen as an increased part of a utility's entrepreneural activities, or it is assumed that planning will go on just as before spot pricing. This paper critically examines the four ways of dealing with this subject: (i) extending present supply-side cost-minimisation; (ii) using joint supply-demand side net-benefit maximisation; (iii) using entrepreneural ship; and (iv) combinations of these. The paper shows which way is likely to be best under various circumstances and suggests future research.