Energy Markets Economics and Regulation

Code:

M.EEC070

Acronym:

REMER

Keywords
Classification	Keyword
OFICIAL	Power

Instance: 2024/2025 - 1S

Active?	Yes
Responsible unit:	Department of Electrical and Computer Engineering
Course/CS Responsible:	Master in Electrical and Computer Engineering

Cycles of Study/Courses

Acronym	No. of Students	Study Plan	Curricular Years	Credits UCN	Credits ECTS	Contact hours	Total Time
M.EEC	23	Syllabus	2	-	6	45,5

Teaching language

English

Objectives

The objectives of this course are as follows:
1. Acquisition and demonstration of knowledge regarding advanced topics on electricity markets, including the treatment of complex bids and models to compute short term nodal marginal prices;
2. Acquisition of a global perspective on regulation on general and on its application to the electricity sector;
3. Acquisition of in deep knowledge regarding the Portuguese Tariff System and the applied regulatory strategies;
4. Acquisition of a global perspective on the coal, natural gas and oil markets, including the negotiation platforms, the main providers and the buyers;
5. Acquisition of knowledge on CO2 markets, green certificates and guarantees of origin;
6. Demonstrate the capacity to treat, validate and interpret results obtained in practical assignments developing autonomous work and bibliographic research;
7. Integrate and perform teamwork and capacity to plan work together with other colleagues;
8. Develop and demonstrate capacities regarding the preparation of written reports and delivery of oral presentations.

Learning outcomes and competences

The students shall obtain and develop a set of competences and knowledge associated with the operation of markets of several goods including their interrelations and main agents as well as advanced knowledge about electricity markets, regulatory strategies and their practical application. The students shall also develop their autonomous work capabilities and to prepare written reports.

Working method

Presencial

Pre-requirements (prior knowledge) and co-requirements (common knowledge)

Students are advised to have the frequency of the Course "Markets and Quality".

Program

The program of the course includes the following topics:
a. Basic concepts of microeconomy useful to define the how companies should act on competitive markets, namely demand and supply curves; b. Markets with physical delivery and financial and derivatives markets, namely in the electricity sector;
c. The coal, natural gas and oil markets, negotiation platforms, price dynamics, main types of products, main providers and buyers;
d. Interrelations between the electricity markets and the coal, natural gas and oil markets.
e. Advanced topics on the operation of electricity markets including the treatment of complex bids and the computation of short term nodal marginal prices;
f. Concept of Regulation – evolution of this concept along time and main regulatory strategies;
g. Application of regulatory strategies to the Tariff Code in force in Portugal mainland.

Mandatory literature

João Paulo Tomé Saraiva, José Luis Pinto Pereira da Silva e Maria Teresa Ponce de Leão; Mercados de electricidade. ISBN: 972-752-053-7
Carol Dahl; Energy Economics and International Energy Markets: Understanding Pricing, Policies, and Profits, PennWell Books, 2004. ISBN: 978-0878147991
Steven Stoft; Power System Economics, IEEE/Wiley, 2002. ISBN: 978-0471150404
Joanne Evans; Lester C. Hunt; International Handbook on the Economics of Energy, Edward Elgar Publishing Limited, 2009. ISBN: 978-0857938251
Subhes C. Bhattacharyya; Energy economics. ISBN: 978-0-85729-267-4

Teaching methods and learning activities

Teaching is based in two components: 
- theoretical classes to present topics related with the program of the discipline accompanied whenever possible with the presentation and discussion of practical situations; 
- practical classes in which students make practical assignments and prepare written reports on them.

Evaluation Type

Distributed evaluation with final exam

Assessment Components

Designation	Weight (%)
Exame	60,00
Trabalho escrito	40,00
Total:	100,00

Amount of time allocated to each course unit

Designation	Time (hours)
Elaboração de relatório/dissertação/tese	30,00
Estudo autónomo	84,50
Frequência das aulas	45,50
Total:	160,00

Eligibility for exams

Frequency will be attained if the following conditions are obtained simultaneously:
- limit of absences to the TP classes is not exceeded;
- delivery of the two written reports mentioned above.

Calculation formula of final grade

Evaluation is distributed with Final Exam, FE. Apart from the final exam, students will deliver two written reports regarding the two assignments developed in TP classes.
The grades assigned to these components are termed as FE, PA1 and PA2 (values ranging from 0 to 20). The minimum grade to obtain in the Final Exam, FE, in order to be approved is 8 out of 20. If the grade obtained in FE is not inferior to 8 out of 20, then the final grade is obtained using the next expression.

CFinal = 0,60*FE + 0,20*PA1 +0,20*PA2

Examinations or Special Assignments

The components of the evaluation are as follows:
- two practical assignments and written reports (PA1 and PA2);
- final exam (FE).

Internship work/project

Not applicable.

Special assessment (TE, DA, ...)

Final exam and written reports about the two practical assignments mentioned above.

Classification improvement

New exam to improve the grade obtained in the Final Exam. The grades obtained in the two Practical Assignments are not subjected to improvement.

Observations

The frequency of this course requires basic knowledge about power systems obtained in the courses on Sistemas Eletricos de Energia and on Regimes Estacionários do SEE as well as on Operations Research. It is the responsibility of the students to ensure having these knowledges when registering in this course. It is also advised the frequency of the course Markets and Quality.