|Status:||CFS - elective
ET - elective
F,FM and B - elective
Masters - all
MEF - elective
Semester - winter
|Course supervisors:|| Nick Elms
Mgr. Petra Valíčková
|Literature:||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, 2017, 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)
|Description:||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.
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.
1. Introduction to the economics of the power sector (supply and demand for power, structure of the industry – generation, transmission and distribution, retail supply);
2. Possible models for organising the power sector, technical characteristics that affect that choice and sector liberalisation;
3. Need for economic regulation and current approaches to regulation and related concepts (cost plus or rate of return, price cap vs revenue cap, RIIO, RAB, etc.);
4. Wholesale electricity trade, including energy only markets and capacity markets, and competition issues;
5. Investment decision making in generation and transmission;
6. CO2 emissions, overview of decarbonisation policy instruments, EU ETS;
7. Renewables and energy efficiency measures; and
8. Retail supply, retail competition and retail 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 (in person): Friday 2nd October (12:30 - 13:50)
2nd lecture (online): Friday 9th October (12:30 - 13:50)
3rd lecture (in person): Friday 23rd October (12:30 - 13:50) (please note there is no lecture on Friday 16th October)
4th lecture (online): Friday 30th October (12:30 - 13:50)
5th lecture (online): Friday 6th November (12:30 - 13:50)
6th lecture (online): Friday 13th November (12:30 - 13:50)
7th lecture (online): Friday 20th November (12:30 - 13:50)
8th lecture (in person): Friday 27th November (12:030 - 13:50)
Please note that if the epidemiological situation and the accompanying restrictions evolve in a way that teaching in person is not possible, we will move to online delivery of all lectures.
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.
With respect to grading, we follow the Dean’s measure No. 17/2018 and the stipulated rules for the A-F grading using rounding up to the nearest whole percentage:
• 91% and above => A
• 81-90 % => B
• 71-80 % => C
• 61-70 % => D
• 51-60 % => E
• 0-50 % => F