Energy Trade and Market Mechanisms
level of course unit
Learning outcomes of course unit
Graduates are able to explain the principles of regulated markets and their unbundling from free-trade markets and interpret these in regard to electricity and gas-network regulations, identify the principles of commodity futures trading and describe free-trading energy markets for electricity and gas, interpret the status of European and national energy markets in regard to political development goals, analyze and assess price developments by means of data processing programs with high temporal resolution.
prerequisites and co-requisites
Introduction to Energy Business, Electrical Power-Supply Networks
The types of unbundling of natural monopolies and free energy markets are illustrated for the electricity and gas economy in regard to their national and European development. Students become familiar with standardized stock-market products and trade markets. Price developments based on examples from the stock market and online trade are graphically prepared and analyzed by means of database applications that are common in Energy Business. Key figures are determined and interpreted based on examples.
Various approaches for energy services, regulated energy services and capacity services in the electricity and gas market are compared with each other. Market players and price-formation mechanisms are explained in various added-value steps as e.g. the transfer pricing system and structured electricity procurement.
Data and facts from current statistics of the World Energy Outlook and other sources are collected and interpreted against the background of political development goals. The influence of government interventions in market events by means of funding measures, infrastructure development measures or the restriction of market power of individual energy-management companies are examined based on examples.
recommended or required reading
Stern J.: The Transition to Hub-Based Gas Pricing in Continaental Europe, Oxford Institute of Energy Studies, 2011
Ströbele W.; Pfaffenberger W.; Heuterkes M.: Energiewirtschaft: Einführung in Theorie und Politik, 1. Auflage, Oldenbourg Wissenschaftsverlag; 2012
Zenke I.; et al.: Energiehandel in Europa: Öl, Gas, Strom, Derivate, Zertifikate, 3. Auflage, C.H.Beck Verlag, 2012
assessment methods and criteria
Written examination, presentation
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