Energy Markets

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

Lecturers: Neven Duić - Ante Ćurković - Goran Krajačić -
Ivan Andročec -
Antun Pfeifer -

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

Course type:

Knowledge assessment:

Type of exercises:

Exam prerequisites:
Introduction to Energy Management
  Course objective:
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.

Recommended literature:
1. Green Paper - Towards a European Strategy for the Security of Energy Supply, European Commission
2. L. L. Lai (Editor) Power System Restructuring and Deregulation, John Wiley & Sons, 2001
3. 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
4. Enerpedia - wikiEnergyMarkets

URL links:
Exam dates

Week Lectures   Exercises

1. Introduction. Demand. Supply. Vertically integrated monopolies and competitive energy companies. Price formation mechanisms. Security of supply. Energy and competitiveness. Oil market. Coal market.   Essay. Test.
2. European energy market. Electricity market. Natural gas market. Third party access. Transmission network.   Essay. Test.
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.   Essay. Test.
4. Price formation. Tariff systems. Liberalized system. System management. Market operator (MO) Transmission system operator or (TSO). Dispatcher. Risk management. System protection mechanisms.   Essay. Test.
5. Colloquy I.   Colloquy I.
6. Cost of new entrant to energy market I. Bilateral markets. Spot market. Day-ahead market.   Case study one: electricity market simulation I. Test.
7. Cost of new entrant to energy market II. Pool system. Obligatory and voluntary pool.   Case study one: electricity market simulation II. Test.
8. Transition and European integrations. Why liberalization? Transition of energy sector. Energy market establishment. Institutional framework. Ownership rights.   Essay. Test.
9. Restructuring and liberalization of Croatian energy sector in Croatia. Electricity market. Natural gas market. HEP and INA restructuring. HEP and INA privatization.   Essay. Test.
10. Colloquy II.   Colloquy II.
11. Regional integration. SEE REM.   Essay. Test.
12. District heating market. Cogeneration plants operation in deregulated energy market.   Case study: simulation of micro-cogeneration plant operation in market conditions. Test.
13. Privileged producers. Renewable energy sources. Feed-in tariffs. Avoided costs. Green certificates.   Case study: simulation of privileged producer operation in market conditions. Test.
14. Emission (SOx, NOx, CO2) markets and its influence on energy markets.   Case study: impact of emission charges on electricity price, comparison with price of electricity produced in wind power plant
15. Colloquy III.   Colloquy III.

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