Energy Economics



Elective courses registration form

   

No of hours per week: 3  [2 + 1], one term   ECTS: 4

Lecturers: prof.dr.sc. Neven Duic - Neven.Duic@fsb.hr
doc.dr.sc. Goran Krajačić - goran.krajacic@fsb.hr
Assistent: Tomislav Pukšec - tomislav.puksec@fsb.hr

Study: graduate (MSc) study of mechanical engineering
Course: process and energy
Orientation: energy
Term: III term

Course type:
Elective-field-related

Knowledge assessment:
exam

Type of exercises:
Laboratory

Exam prerequisites:
there are no prerequisites
 

Course objective:
Studying methods of investment evaluation in energy sector, methods for energy production cost calculation and energy pricing methodology.

Recommended literature:

  1. Enerpedia - wikiOsnoveEnergetike
  2. Charles M. Gottschalk: Industrial Energy Conservation, UNESCO Energy Engineering Series, John Wiley & Sons Ltd., Chichester, West Sussex, UK, 1996
  3. T. W. Berrie, Electricity Economics and Planning, Iee Power Engineering Series, No 16, 1993
  4. Subhes C. Bhattacharyya: Energy Economics, Springer-Verlag London Limited 2011

URL links:
Exam dates


Week Lectures   Exercises

1. Introduction. Energy and economy. Influence of cost of energy on economy. Influence of economy on energy cost. Influence of cost of energy on technology developement.   Essay. Test.
2. Microeconomics I. Cash flow model. End-of-period convention. Middle-of-period convention. Continuous flow convention. Time value of money. Future worth of money. Present worth of money. Uniform series future value. Sinking fund payment. Uniforma series present worth. Capital recovery. Gradient present worth.   Future worth of money. Present worth of money. Uniform series future value. Sinking fund payment. Uniforma series present worth. Capital recovery. Gradient present worth. Test.
3. Microeconomics II. Equipement life-time. Equipment cost. Project benefits and costs. Evaluation of project proposals I: Payback method. Average rate of return method.   Payback method. Average rate of return method. Test.
4. Microeconomics III. Evaluation of project proposals II: Present value method. Profitability index.   Present value method. Profitability index. Test.
5. Microeconomics IV. Evaluation of project proposals III: Internal rate of return (IRR). Mutual exclusion and dependancy. Comparision of different methods. Investment decisions, investment uncertainty, investment risk.   Internal rate of return (IRR).
6. Colloquy I.   Colloquy I.
7. Microeconomics V. Life-cycle cost analysis. Emission certificates. Green certificates.   Influence of decommission cost on energy cost.
8. Microeconomics VI. Systematic economic analysis technique. Income tax. Depreciation. Inflation.   Income tax and present worth method, profitabillity index, internal rate of return.
9. Tariff systems. Electricity production costs in different conversion systems. Internal and external costs. Energy costs. Fixed and variable costs.   Costs calculation.
10. Colloquy II.   Colloquy II.
11. Electricity and heat production cost calculation methodology I.   WECS electricity cost calculation. TPP electricity cost calculation. HPP electricity cost calculation.
12. Electricity and heat production cost calculation methodology II.   NPP electricity cost calculation. PV + battery systems electricity cost calculation.
13. Electricity and heat production cost calculation methodology III.   Solar heat cost calculation. Heat and power cost calculation from cogeneration.
14. Energy production cost calculation methodology III.   RES/H2 energy costs calculation.
15. Exam.   Exam.


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