The privatisation of the electricity supply industry in the UK and the impending changes in the European market in 1992 represent new challenges to UK power engineers. In addition, there are new markets to be served in the developing world. The resultant problems and opportunities are the theme of the 1990 Hunter Memorial Lecture. The way in which power engineers have tackled changing markets and technology in recent years is described, using a series of examples from a range of equipment. In addition, the need to encourage more people to take up the challenge of engineering as a career is addressed with reference to training and career development, investment in new technology, the development of new products and the need for improved marketing. A further theme is the latest challenge facing the power engineer in the 1990s—the environment. The paper concludes with a description of the construction, by British engineers, of a new 1000 MW coal-fired power station in India, overcoming the challenges of geography, climate and cultural differences in the process.