Introduction to energy market deregulation. Analyses of utilities structural and technological changes. Disintegration of state owned monopolies. Introduction to market mechanisms. Market influence on energy prices and energy strategy. Flexible mechanisms of emissions trading.

Student responsibilities:

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

Colloquium, Essay, Test

Methods of monitoring quality that ensure acquisition of exit competences:

Colloquium, Essay, Test

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

After successfully passing the exam, the student will have the following abilities: - Independently investigate and critically assess the positive and negative aspects of the liberalization process in the energy sector where traditional state monopolies in the market conditions changing technological and ownership structure. - independently investigate upcoming trends in the market mechanisms, with special emphasis on network energy market, and the effect that has on the market price of energy, and strategic decisions in the energy sector. - independently investigate and discuss the arguments (flexible) mechanisms of emissions trading, and the impact on the energy market. - critically evaluate the viability of constructing individual plants in market conditions - Assess the impact of the integration of Croatian electricity market with the Regional Market - Assess the impact of day-ahead market on the profitability of individual plants with special emphasis on flexibility in power production

Lectures

1. Introduction. Demand. Supply. Vertically integrated monopolies and competitive energy companies. Price formation mechanisms. Security of supply. Energy and competitiveness. Oil market. Coal market.

2. European energy market. Electricity market. Natural gas market. Third party access. Transmission network.

3. Energy sector restructuring: energy markets deregulation. Energy market models. Partially and fully opened market. Utilities unbundling: vertical and horizontal. Separation of generation, transmission, distribution and supply services.

4. Price formation. Tariff systems. Liberalized system. System management. Market operator (MO) Transmission system operator or (TSO). Dispatcher. Risk management. System protection mechanisms.

5. Colloquium I.

6. Cost of new entrant to energy market I. Bilateral markets. Spot market. Day-ahead market.

7. Cost of new entrant to energy market II. Pool system. Obligatory and voluntary pool.

8. Transition and European integrations. Why liberalization? Transition of energy sector. Energy market establishment. Institutional framework. Ownership rights.

9. Restructuring and liberalization of Croatian energy sector in Croatia. Electricity market. Natural gas market. HEP and INA restructuring. HEP and INA privatization.

10. Colloquium II.

11. Regional integration. SEE REM.

12. District heating market. Cogeneration plants operation in deregulated energy market.

13. Privileged producers. Renewable energy sources. Feed-in tariffs. Avoided costs. Green certificates.

14. Emission (SOx, NOx, CO2) markets and its influence on energy markets.

15. Colloquium III.

Exercises

1. Essay. Test.

2. Essay. Test.

3. Essay. Test.

4. Essay. Test.

5. Colloquium I.

6. Case study one: electricity market simulation I. Test.

7. Case study one: electricity market simulation II. Test.

8. Essay. Test.

9. Essay. Test.

10. Colloquium II.

11. Essay. Test.

12. Case study: simulation of micro-cogeneration plant operation in market conditions. Test.

13. Case study: simulation of privileged producer operation in market conditions. Test.

14. Case study: impact of emission charges on electricity price, comparison with price of electricity produced in wind power plant

15. Colloquium III.

Compulsory literature:

Green Paper - Towards a European Strategy for the Security of Energy Supply, European Commission
L. L. Lai (Editor) Power System Restructuring and Deregulation, John Wiley & Sons, 2001
M. D. Ilic, F. D. Galiana, L. H. Fink (Editors), Power Systems Restructuring: Engineering and Economics, Kluwer International Series in Engineering and Computer Science, 1998

Recommended literature: