Part IVEfficient Investment in Generation and Consumption Assets
Interior of Freeman's Bay power station, New Zealand, ca 1908 (Source: Neil Rennie)
The previous part of this book dealt with the efficient use or operation of a stock of generation, consumption and network assets. But as we emphasised in Part I, efficient use of the existing stock of assets is only part of what we require for economic efficiency. It is just as important to achieve efficient investment in new assets – efficient investment in generation assets and efficient investment in new consumption assets. Do decentralised smart markets yield efficient signals for long-term investment? Can markets deliver the right amount of investment in the right location, at the right time?
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