JEM162 - Energy Markets & Economics

Kredit: 4
Role předmětu: Anglicky
CFS - elective
ET - povinně volitelný
F,FT a B - povinně volitelný
Magisterský - vše
MEF - elective
Semestr - zimní
Garanti: Nick Elms
Mgr. Petra Valíčková
Stránky kurzu: JEM162
Literatura: There is no single textbook for this course and for this reason we try to include a lot of information in the course material discussed during the lectures. Nevertheless, there are several good books from which you can read selected chapters that link well to the topics covered in this course:

Power: A Practical Handbook, Danielle Beggs and Rajan Phakey, SNR Denton, Globe Law and Business, ISBN: 978-1905783854, 251 pages, available in the IES library.

The Economics of Electricity Markets, Barryl R. Biggar, Wiley – IEEE, 1st Edition, September 2014, ISBN: 978-1118775752, 432 pages, available in the IES library.

Making competition work in electricity, Sally Hunt, Wiley, 2002, ISBN: 978-0-471-22098-5, available online.

Steven Stoft, Power system economics: designing markets for electricity, 2002, ISBN: 978-0-471-15040-4, 496 pages (part of the book available online)
Popis: This course covers a variety of theoretical and empirical topics related to the economics of the power sector. This includes concepts such as supply and demand for power, the structure of the industry (generation, transmission and distribution, retail supply), regulation of the power sector, wholesale power markets and their design (including competition issues), energy efficiency and retail supply, among other topics. We will also explore environmental consequences of energy consumption and production decisions.

The core objective of this course is to gain a good understanding of the power sector with a focus not only on theoretical concepts but also on a more practical application of economic concepts related to power markets.

1st lecture Introduction to the economics of the power sector (supply and demand for power, structure of the industry – generation, transmission and distribution, retail supply);

2nd lecture: Possible models for organising the power sector, technical characteristics that affect that choice and sector liberalisation;

3rd lecture: Need for regulation and current approaches to regulation and related concepts (cost plus or rate of return, price cap vs revenue cap, RIIO, concept of RAB, etc.);

4th lecture: Wholesale trade, including energy only markets and capacity markets, and competition issues;

5th lecture: Investment decision making in generation and transmission;

6th lecture: CO2 emissions and decarbonisation policy instruments (EU ETS);

7th lecture: Other decarbonisation policy instruments (energy efficiency and energy efficiency policies, and renewable energy); and

8th Lecture: Retail supply, retail competition and pricing (including concepts of long run and short run marginal costs, average costs and market failures related to information).

This course will be taught in block lectures with the following schedule:

1st lecture: Friday 6th October (12:30 - 13:50)
2nd lecture: Friday 6th October (14:00 - 15:20)
3rd lecture: Friday 20th October (12:30 - 13:50)
4th lecture: Friday 20th October (14:00 - 15:20)
5th lecture: Friday 3rd November (12:30 - 13:50)
6th lecture: Friday 3rd November (14:00 - 15:20)
7th lecture: Friday 24th November(12:30 - 13:50)
8th lecture: Friday 24th November(14:00 - 15:20)

Please note that the dates of the lecture might change in case we need to travel for work.

The final grade is based on a written empirical paper (term paper) and performance during the final exam, with the following weights:
- Written empirical paper (40%); and
- Final written exam (60%).

Moreover, you are required to get at least 50% in your final exam in order to successfully pass the course.

You will have to gain at least 80 points to get a grade of 1, at least 70 points to get a grade of 2 and at least 60 points to get a grade of 3.


McKinsey & Company
Moneta Money Bank