Module: 5. Policy Analysis Concentration Elective | 6. Portfolio Elective | 7. Portfolio Elective | 5. Security & Sustainability Concentration Elective
Instructors: Prof. Dr. Lion Hirth
Energy economics is an introduction to the technology and economics of energy systems, power markets and electricity networks. The economics of wind and solar energy, the cornerstone of low-carbon energy systems, lie at the heart of this course. After a crash course in power plant technology and electricity systems engineering, we will discuss the drivers of cost of electricity, with a particular focus on renewable energy and the cost revolution that has made wind and solar energy cost-competitive with fossil fuels. We will then develop tools to assess the economic value of electricity. Students will learn methods to derive an optimal long-term electricity generation mix and to evaluate the economics of wind and solar energy. We will study the “market value” of renewable energy, understand why it drops as deployment increases and discuss the (unsettling) implications for the long-term economics of renewables. But we will also discuss how the transformation of the energy system, in particular the rise of batteries and green hydrogen, helps mitigate the value drop. We will also study electricity markets, power grids, locational pricing and the rise of “prosumers”.
This course is for 2nd year MIA, MPP and MDS students only.Find out more