Course information

Module Manager
Name E-mail
Dr.ir. L.J. de Vries    L.J.deVries@tudelft.nl
Contact Hours / Week x/x/x/x
0/4/0/0
Education Period
2
Start Education
2
Exam Period
2
3
Course Language
English
Required for
Mandatory module for the SEPAM Energy Profile and the MoT Energy Systems Profile. Strongly recommended for those who wish to do a Master's Thesis project in the areas of electricity or gas markets in the Energy & Industry Section or in the Economics of Infrastructures Section.
Expected prior knowledge
Basic understanding of market economics: supply and demand equilibria, demand elasticity, market power. Basic understanding of the principles of liberalisation of infrastructures, such as the unbundling of monopolistic functions from competitive functions, and the role of regulation.
Summary
European gas and electricity markets have largely been liberalized. Due to the specific physical characteristics and public interest aspects of electricity and gas, and to the fact that the networks continue to be natural monopolies, these markets require careful design. In this class, it is analyzed what the market design variables are and how the ongoing process of market design depends on policy goals, starting conditions and physical, technical and institutional constraints. In addition, a number of current policy issues will be discussed, such as security of supply, the CO2 emissions market, the integration of European energy markets and privatization. Participation in a simulation game, in which long-term market dynamics are simulated, is mandatory.
Course Contents
Introduction, models of liberalization, network regulation
Conceptual framework of market design
Gas system & actor description
Electricity system & actor description
Long-term development of electricity markets
Long-term development of gas markets
Course Contents Continuation
Introduction, models of liberalization, network regulation
Conceptual framework of market design
Gas system & actor description
Electricity system & actor description
Long-term development of electricity markets
Long-term development of gas markets
Study Goals
Understanding of the economic and organisational structure of electricity and gas markets in relation to their technical characteristics; insight in current policy and regulatory issues. The aim of this course is to apply the students’ technical, economic, legal and policy making skills to the complex and highly relevant reality of regulation and market design in electricity and gas sectors. At the end of the course, students should be able to analyze energy policy issues from a technical, economic, and institutional perspective and be able to argue different sides of the issue.
Education Method
Lectures, guest lectures, market simulation game, excursion.
Computer Use
An on-line market simulation game is part of this course.
Literature and Study Materials
Reader SPM 9541, other reading materials such as scientific papers, to be announced on Blackboard.
Prerequisites
One of the following classes is required: SPM 2220, DTB 2220, TPA 1231. Students from other departments may substitute with a different economics class. Experience shows that students without a basic understanding of market economics have difficulty with this class.
Assessment
Written test.
Permitted Materials during Tests
Calculator
Enrolment / Application
Via Blackboard
Targetgroup
Master students
Category
MSc level