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.

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
• Verbal and written communication: through presenting discussed case studies, the students will improve their communication and presentation skills crucial in today's business world.

Teaching methods

Due to the COVID19 emergency, all the classes will be in presence and also streamed in my webex page.

Sala riunioni personale di Valeria Di Cosmo
https://unito.webex.com/meet/valeria.dicosmo | 846876999

so everyone will be able to attend. Please register to the class through Moodle (follow at the end of the page the "go to Moodle" link). 

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

Classes start on February 21st and will be held monday-tuesday-wednesday 10-12

Evaluation method

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

Students who wish to attend the classes and work on problem sets assigned will also get an evaluation that will count for 1/3 of the final exam.

Schedule

1. 1. 1. 1. Intro:
         2. Materials:
            1. How do power sector works
            2. Circular economy and critical materials
            3. Rare materials

          

         3. Energy demand :introduction
            1. Environmental targets
            2. Methods:
               1. Bottom-up
               2. Top-down
            3. Markets:
               1. Oil
               2. Gas
         • Coal markets
         1. Res

          

         4. Wholesale electricity markets:
            1. Introduction: some data and description
            2. Covid19 and the electricity markets
            3. How do they work: DA, IM, balancing
            4. Interconnection between markets
            5. RES
               1. Spot market competition
               2. RES: investment, subsidies and sustainability
               3. RES and balancing markets
         1. Who pays for the energy transition?
         2. MSD, Capacity markets: potential problems and question open
         3. Forward markets

          

          

         5. Market power and competition in electricity markets+ California

          

         6. Retail markets:
            1. Average cost pricing
            2. Two part tariffs
            3. Ramsey pricing
            4. Retail prices and competition
            5. Demand response and energy efficiency
            6. -> insight : are people rational?: behaviour , smart meters , switching , NIMBY

          

         7. Electricity markets and flexibility:
            1. Storage, electric vehicles
            2. -> Insight Samuel Carrara JRC
            3. Hydrogen for storage
            4. Efficiency and demand management
            5. Energy Communities

          

         8. Energy investment:
            1. Investment evaluation
               1. NPV , IRR
               2. Risk analysis
               3. LCOE

Books:

Books and papers

In bold, compulsory.

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

Bhattacharryya: 2,6,7,12,13,14-16

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

Other resources

World Energy Outlook (WEO) 2019, 2020, 2021. 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

Time of the classes: Mon, Tue, Wed, 10-12.

Office hours: Wed, 16-17.30, either in person or online (same webex page of the classes) . Please send an email to fix an appointment