In some jurisdictions, there has been indication of or observed cycles in electricity generation capacity after the market was deregulated (Ford, 1999; Larsen and Bunn, 1999; Arango and Larsen, 2011), This raises the question of whether these cycles are a consequence of the initial transition to the newly designed markets or an inherent characteristic of these markets. this raise the question if these cycles are a result of an initial transition of the newly designed markets, or if they are inherent in these markets. The cycles in capacity effects critical areas in an electricity market, from short-term operational issues e.g. security of supply to longer-term issue, like capacity adequacy, price volatility and increased uncertainty for investments.