Energy Markets and Energy Trading

None

This course will focus on the in-depth study of selected chapters of energy economics, in particular energy trading, as well as the characteristics and functioning of the relevant energy markets. In addition, current market developments with a high practical relevance are discussed.

Building on the fundamentals of the energy market economy, students learn

• Macroeconomics: Resource economics, price formation and market power, external effects and their consequences
• Primary energy markets and trade: significance, history, organisation of markets, price formation, important market participants
• Energy policy and regulation: security of supply, economic efficiency, environmental compatibility and interactions
• Electricity Market and Trading: History, Balance Group Model, Structure and Segments of the Electricity Market
• Microeconomics: power plant deployment planning, portfolio analysis, risk management, procurement and trading strategies
• Current market developments: Expansion of renewable energies, challenges for energy suppliers, grid expansion or market design

The aim of the course is to gain an understanding of a market and how it works, whose products form an essential basis for our lives today, which has increasingly become part of social consciousness in recent years, and which is also the cause of geopolitical tensions and ecological consequences.

Building on the economic foundations, students are given

• an overview of the significance of the various energy sources, their interrelationships and characteristics as commodities.
• an understanding of market economy concepts and principles (electricity exchange, OTC trading, etc.), how markets are interlinked (fossil fuels, emissions trading, etc.) and familiarity with subsidy models for renewable energies.
• use case studies to gain an insight into portfolio management (power plant deployment optimization, trading strategy, etc.) and risk management (hedging via derivatives, etc.), as well as current developments on the electricity market.

• Lecture with integrated exercises
• Case studies, presentations and interactive energy debates

• Electricity market simulation (part 1: price forecast 20%, part 2: power plant marketing 20%)
• Final exam (60%)

The examination parts must be positive only in total.

The repeat examination and the commission examination take place orally.

none

• Crastan, Valentin; Crastan, Valentin (2018): Energiewirtschaft und Klimaschutz, Elektrizitätswirtschaft und Liberalisierung, Kraftwerktechnik und alternative Stromversorgung, chemische Energiespeicherung. 4., bearbeitete Auflage, korrigierte Publikation 2018. Berlin: Springer Vieweg.
• Konstantin, Panos (2017): Praxisbuch Energiewirtschaft: Energieumwandlung, -transport und -beschaffung, Übertragungsnetzausbau und Kernenergieausstieg. 4., aktualisierte Auflage. Berlin: Springer Vieweg.
• Ströbele, Wolfgang; Pfaffenberger, Wolfgang; Heuterkes, Michael (2012): Energiewirtschaft: Einführung in Theorie und Politik. 3., überarbeitete und aktualisierte Auflage. München: Oldenbourg.

presence course