Energy Markets II

In continuation of the lecture "Energy Markets I", students gain an overview of the more fundamental concepts of energy markets (eg. renewable energy promotion schemes, energy trading in wholesale markets). Thereto, the course covers the topics of renewable electricity production, introducing energy trading, a case study of the fracking industry and energy grids/ networks. Transmission grid management and expansion are considered as the significant topic of energy grids.

Upon successful completion of this module, students are able to (1) name and (2) summarize the concepts and economic characteristics of all relevant fields of energy markets. Further, they can (3) explain how to trade energy commodities in energy markets. They are able to (4) interpret the role of energy grids and their regulation. Finally, they can (5) apply the aforementioned concepts and theoretical foundations presented in the module. Students are able to (6) analyze business models of utilities and make business decisions regarding management and investment in electricity markets in response to a changing environment.

The module examination is based on a written exam (60 minutes), which has two parts and is open-book. The first part of the written exam (≤20% of written exam) consists of multiple-choice questions, which tests the students’ knowledge and understanding of the basic concepts and economic characteristics of energy markets. The second part of the written exam (≥80% of written exam) consists of open questions and calculations. Here students have to show that they can explain how to trade energy commodities in energy markets and interpret the role of energy grids and their regulation. In answering the open questions students demonstrate their ability to analyze business models of utilities and their ability to make business decisions regarding management and investment in the electricity market in response to a changing environment. . Students may use a non-programmable calculator. Additionally students have the possibility to improve their test score by 10 percentage points through a voluntary midterm assessment. This involves successfully taking part in the browser- based business game offered during the exercise course. The results of the midterm assessment are used only if they improve the overall grade of the written exam.

Basic knowledge in economics (competition) and industrial economics (market power, oligopoly, entrance barriers, transparency). Modules: - Energy Markets I - Economics I (Microeconomics) - Industrial Economics

The module combines various learning methods: - Basic knowledge, theoretical concepts and practical examples are provided through the lecture. - Students are encouraged to get additional background knowledge from scientific literature in private reading. - In the exercise course, students play a browser-based business game. In the course of the business game, the students slip into the role of the Chief Executive Officer of a utility company.