The present affluence in the industrial world is the result of a long process starting 300 years ago with the invention of the steam engine and the gradual replacement of fire-wood by coal. Together with the later combustion engine the steam engine now sup-plies 80 percent of the power...

Much of the interest in the Supply Function Equilibria (SFE) model is focused on electricity spot markets for which it seems to be ideally suited. Most of the work has dealt with thermal power supply and very little with mixed hydro and thermal supply. The purpose of this paper is to explore the...