Good English level (the class will be taught in English). Knowledge of statistics/econometrics and microeconomics is strongly reccomended.

Course objectives

The objective of the course is to introduce students to the current issues in energy economics. Through course lectures, class projects and assignments, the students will learn about contemporary issues in energy economics. Some of the topics that students will learn about include: European energy policy, regulation of energy sectors, electricity, gas, heat and renewable energy markets, capital budgeting in regulated and liberalized markets. After successful completion of the course, the students will be capable to critically assess developments in the energy sector. The course will also prove beneficial to those students planning to pursue a career in energy-related positions.

Course objectives

The objective of the course is to introduce students to the current issues in energy economics. Through course lectures, class projects and assignments, the students will learn about contemporary issues in energy economics. Some of the topics that students will learn about include: European energy policy, regulation of energy sectors, electricity, gas, heat and renewable energy markets, capital budgeting in regulated and liberalized markets. After successful completion of the course, the students will be capable to critically assess developments in the energy sector. The course will also prove beneficial to those students planning to pursue a career in energy-related positions.

Expected learning outcomes

After completing the course, the students will have acquired the following:

• Understanding of the workings of energy markets in general and principles by which European energy policy is reflected in national energy policies.
• Understanding of the challenges linked to the energy transition
• Critically discuss the challenges due to materials' risks and renewables
• Verbal and written communication: through presenting discussed case studies, the students will improve their communication and presentation skills crucial in today's business world.

Expected learning outcomes

After completing the course, the students will have acquired the following:

• Understanding of the workings of energy markets in general and principles by which European energy policy is reflected in national energy policies.
• Understanding of the challenges linked to the energy transition
• Critically discuss the challenges due to materials' risks and renewables
• Verbal and written communication: through presenting discussed case studies, the students will improve their communication and presentation skills crucial in today's business world.

Schedule

Week 1

Class 1-2:

Intro: Energy demand and supply (WEO, several years)

Methods:

1. Bottom-up 
2. Top-down
3. Econometrics (Case studies)
4. Behavioural economics (Energy communities as a case study)

 

Week 1-Week 2-Week 3: Markets

 

Class 3:

• Coal (B, chapter 16 +WEO)
• Oil (B, chapter 14 + WEO)
• Gas (B, chapter 15+ WEO)

• Uranium WEO, several years

 

• Electricity markets:

 Class 4-5:

• Introduction (C-F, chapter 3)
• How do electricity markets work: DA, IM, balancing (C-F, chapter 5 &11)

Class 6-7

• Optimal dispatching
  1. Centralised solution (C-F, chapter8)
  2. Market solution (C-F, chapter 10)

Class 8-9

• Spot market competition and market power (C-F, chapter 12-13+ Borenstein+Fabra)
• Interconnection between markets (C-F, chapter 14)

Class 10-12: RES:

• RES competition (Fabra)
• RES Supporting schemes (C-F chapter 25+ Menanteau, 2003)
• RES: investment, subsidies and sustainability (C-F chapter 26)

Week 4- Week5: Rare materials

1. Class 13: Rare materials and the energy transition (JRC reports) and Samuel Carrara’s lecture

1. Class 14: Recycling (T-L 9th edition, chapter8)

3. Class 15-17: Intertemporal optimization and depletable resource allocation (T-L, chapter 5, 6)

 

Week 6- Week 7:

• Class 18: Optimal investment and cost-benefit analysis (T-L, chapter 3)
• Class 19-20: The transport sector and the role of hydrogen

 

Schedule

Week 1

Class 1-2:

Intro: Energy demand and supply (WEO, several years)

Methods:

1. Bottom-up 
2. Top-down
3. Econometrics (Case studies)
4. Behavioural economics (Energy communities as a case study)

 

Week 1-Week 2-Week 3: Markets

 

Class 3:

• Coal (B, chapter 16 +WEO)
• Oil (B, chapter 14 + WEO)
• Gas (B, chapter 15+ WEO)

• Uranium WEO, several years

 

• Electricity markets:

 Class 4-5:

• Introduction (C-F, chapter 3)
• How do electricity markets work: DA, IM, balancing (C-F, chapter 5 &11)

Class 6-7

• Optimal dispatching
  1. Centralised solution (C-F, chapter8)
  2. Market solution (C-F, chapter 10)

Class 8-9

• Spot market competition and market power (C-F, chapter 12-13+ Borenstein+Fabra)
• Interconnection between markets (C-F, chapter 14)

Class 10-12: RES:

• RES competition (Fabra)
• RES Supporting schemes (C-F chapter 25+ Menanteau, 2003)
• RES: investment, subsidies and sustainability (C-F chapter 26)

Week 4- Week5: Rare materials

1. Class 13: Rare materials and the energy transition (JRC reports) and Samuel Carrara’s lecture

1. Class 14: Recycling (T-L 9th edition, chapter8)

3. Class 15-17: Intertemporal optimization and depletable resource allocation (T-L, chapter 5, 6)

 

Week 6- Week 7:

• Class 18: Optimal investment and cost-benefit analysis (T-L, chapter 3)
• Class 19-20: The transport sector and the role of hydrogen

 

Teaching methods

Class materials (slides, papers etc.) will be available in Moodle.

Classes will be held monday-tuesday-wednesday 16-18

 

Evaluation method

There will be a written exam at the end of the course.

Evaluation method

There will be a written exam at the end of the course.

Books:

Books and papers

In bold, compulsory.

Mineral Resources Economics 2:Issues and Action Levers, Wiley, Fizaine and Galiegue, downloadable in blibiopass. Chapters: 1,6,7,8

Creti and Fontini: Chapters: 3-6, 11,12,13,19,20,24,25, 26

Tietenberg and  Lewis, Chapters 3, 5, 6, 7, 8

 

 

Papers

Natalia Fabra, The energy transition: an industrial economics perspective available here: http://nfabra.uc3m.es/wp-content/uploads/2020/12/SURVEY_EARIE-FINAL.pdf

Natalia Fabra, The energy transition: an industrial economics perspective available here: http://nfabra.uc3m.es/wp-content/uploads/2020/12/SURVEY_EARIE-FINAL.pdf

Borenstein: http://faculty.haas.berkeley.edu/borenste/download/ElecJo00MktPower.pdf

Twomey and Neuhoff, Wind power and market power in competitive markets, Energy Economics, 2010

IEA, Critical Minerals Market Review 2023 (available online)

JRC, The role of rare earth elements in wind energy and electric mobility

JRC, Supply chain analysis and material demand forecast in strategic technologies and sectors in the EU -; A foresight study

Menanteau et.al. Prices versus quantities: choosing policies for promoting the development of renewable energy, Energy Policy, 31, 2003

Other resources

World Energy Outlook (WEO) various years. You can download those from the I-OECD section of the virtual UniTo library (access through bibliopass)

IEA, the future of hydrogen, 2019

For people interested in methods&econometrics&simulations (not compulsory):Rafal Weron, Modeling And Forecasting Electricity Loads And Prices: A Statistical Approach