How will the introduction of electricity market competition affect power generation and transmission technology? Which technologies are most likely to receive a push from competitive markets? These are the questions examined in this review, which considers a wide range of options in both generation and transmission. Competition strengthens the search for the most cost-effective technologies. All electricity generation technologies are affected: those for existing and new plants as well as those for improving capital and operating efficiency. In existing plants, reliability, life extension, operating flexibility and demand-side technology are some of the major factors of change. In new plants, gas turbines are set to continue their growth, but there is still a place for conventional steam and other power plants. New government policies for technology support and environmental protection also have a role in evolving technological choices when competition is introduced.