Energy Economics

• Explain and apply basic concepts of economic theory such as demand and supply , general equilibrium and markets
• Describe a country’s energy structure and apply relevant indicators to compare it with other countries
• Identify and explain the dynamic interactions between energy markets,and describe the role of institutional and organisational relationships in energy markets
• Analyse power markets based on load duration curves, screening curves and cost recovery of power plants
• Describe the relation between investments and generation capacity and the effects produced by capacity remunerations models such as capacity markets
• Model interactions within power markets depending on competitive structure
• Assess compare and anslyse the effects and interactions between different regulation methods
• Analyse and compare the consequences of different support schemes and auction mechanisms on renewable energy technologies investment
• Describe the regulatory and policy choices for unbundling and energy networks regulation
• Analyze energy demand and electricity load patterns and how the affect energy systems
• Apply quantitative methods for energy economics analysis

This course takes the approach of microeconomics to analyse the energy sector, how energy markets behave and the necessary regulation of markets.
The course provides a general introduction to the energy sector both at the national and at the international level. The main focus will be on different types of energy markets (electricity, oil, gas, emissions, etc.). This encompasses market design, market interactions as well as potential market imperfections. These subjects will be analysed and discussed under consideration of environmental taxes, quantitative regulation and market power. We discuss policy measures to address these aspects under different conditions.
Textbook chapters as well as scientific papers and articles dealing with the respective subject will be introduced and discussed.

The course applies an equality policy with no discrimination of gender, age, religious beliefs or disabilities.

01005/42009, Basic knowledge of microeconomics, power market theory, and energy market liberalisation is a plus.

For students that have no previous experience regarding microeconomic theory, it is highly recommended to read Gregory Mankiw “Principles of Microeconomics”, Chapters 6–10.

The energy economics course consists of a 4-hour weekly schedule, with 2 hours allocated to lectures in the auditorium and another 2 hours dedicated to exercises and group work. Additionally, students should anticipate further engagement beyond the designated course hours.

Teaching activities and content are organised for students admitted to the MSc in Engineering (Sustainable Energy)