To familiarize students with the application of economic methods in the estimations of economic feasibility of investment projects in power engineering, with a focus on the methods for the calculation of the costs of energy generation. Also, the goal is to prepare students for the tasks of energy planning in case of simple energy systems, based on the demand modelling and strategic thinking about development of energy systems.

Student responsibilities:

Class attendance, consultations attendance and solving the tasks during the course

Grading and evaluation of student work over the course of instruction and at a final exam:

Upon successful completion of the course, students will be able to (learning outcomes):

1 . Estimate the feasibility of investments in energy related projects

2 . Evaluate and compare techno-economic parameters for different renewable energy sources

3 . Analyse and evaluate the subsidy systems for generation of heat and electric energy from renewable energy sources

4 . Plan the development of energy systems through modelling and simulation of demand and supply of energy

5 . Propose measures for increase of energy efficiency and reduction of greenhouse gas emissions in national and local strategic documents.

6 . Analyse the influence of acts, regulations, directives and strategies on the energy planning and development of energy systems

Lectures

1. Introduction - influence of energy on the economy and employment

2. Microeconomics I - cashflow model, value of money in time, capital recovery, lifetime of equipment and costs. Evaluation of a project proposal

4. Microeconomics II - investment decisions, investment uncertainty, investment risk

5. Tariff system, production costs, internal and external costs

6. Legislative and institutional framework (electricity, heat, gas)

7. Economic instruments for subsidizing the renewable energy sources

8. Levelized cost of energy generation and link to energy markets

10. Energy planning - resources, security of supply, fuel costs, availability of technologies

11. Sector analysis

12.

13. Interaction of energy demand and generation on an example of simple energy systems

14.

15.

Exercises

3. Seminar - influence of decommission price on the energy price

9. Seminar - levelized cost of electricity/heat generation from the technology of choice

10.

11.

12. Seminar - planning of the power system

13.

14. Seminar - final consumption scenarios and sector analysis

15. Seminar - simulation of the power market and economic feasibility of the power plant operation

Compulsory literature:

Recommended literature: