Energy Economics (OPEN UNI)

The purpose of the course is to provide an understanding of the economics of the supply and use of energy. The course will help students to understand the role of economics in shaping the energy system. The course will provide with knowledge of the functioning of the electricity markets, and price formation in electricity markets. The course also aims to provide an overview of market mechanisms of today and the future. After the course, the student will know the cost structure of different energy generation technologies, the price formation in power markets and how the electricity price is formed for consumers. The student will be able to explain the role of electricity markets, as well as balancing and reserve markets. The student will also understand natural monopolies and their economics. The student will also know how the electricity transmission and distribution sector is regulated in Finland. The student will gain fluency in market-based solutions of flexibility, such as demand-side management. The student will also understand the economic consequences of the large-scale integration of renewables, and the support schemes for renewable energy sources. The student will know what externalities are, and how to internalize externalities. The student will know the expectations from incentive-based instruments to reduce pollution, including carbon pricing, marketable emission permits and the EU Emission trading system. The student will also gain understanding of the concepts of carbon leakage and the social cost of carbon. Aims to provide an understanding of the power market, electricity pricing, and market mechanisms. Relevant for those interested in the energy industry or any energy intensive sector.

The course environment in Moodle: Video lectures, learning tasks and exercises. Organized entirely as self-learning.

Lecture material is provided in the course environment.

Intermediate tasks (30% off the grade) and final exam (70% the grade)

Eva Pongracz

1-5/HYL

Timetables: https://opas.peppi.oulu.fi/fi/opintojakso/488508S/19308?period=2024-2025