The generation industry is of great importance in Norway. Hence, valuation issues in this industry are of great interest. However, highly volatile electricity prices make valuation difficult. The purpose of this book is, through the myopic perspective of real option theory, to study and value generation assets. Chapters 1-3 provides a general discussion of the industry and the real option tool. Chapters 4-6 are quantitative analyses of value aspects in the industry. Chapter 4 consists of the main analysis of the thesis, where the pricing of companies, or parts of companies, in the generation industry after the deregulation in 1991, is analysed in the light of real option theory. Chapters 3 and 4 elaborate two types of real options relevant in the industry; growth options and switching options. The studies comprising this book provide deeper insight into valuation aspects of generation assets. The book also contributes to the literature on real option applications.