Electricity Market Design

ECS576 Electricity Market Design

Spring 2024

Autumn 2024
  • Topics

    This course covers recent advances in the field of energy economics, with emphasis on the market design issues that arise in electricity markets as renewable energies become the dominant technology. The course will start with an overview of electricity markets in practice, together with a discussion of the main regulatory challenges currently under debate. Three sets of topics will follow: (i) Competition in short-run electricity markets. (ii) Optimal design of long-term contracts for renewable energy investments. (iii) Role and impact of energy storage and demand-side policies aimed at counteracting the volatility of renewable energies. Methodologically, the course will rely on applied theory models combined with empirical applications. Throughout the course, students will be encouraged to identify key research questions within this field.

  • Learning outcome

    Knowledge

    Upon completion of the course, the student can…

    • Model the performance of electricity markets.
    • Identify the key market failures.
    • Understand the main challenges facing electricity market design at the onset of the decarbonization process.
    • Identify the competition policy implications that arise during the energy transition.
    • Critically assess recent papers on the energy transition and electricity market design.

    Skills

    Upon completion of the course, the student can…

    • Evaluate advanced topics in energy and environmental economics in their own research.
    • Apply advanced topics in energy and environmental economics in their own research.

    Competence

    Upon completion of the course, the student can…

    • Communicate and discuss the relevant research with a peer audience.

  • Teaching

    The course consists of four days of lectures and sessions for the students to present their own research.

  • Restricted access

    • PhD candidates at NHH
    • PhD candidates at Norwegian institutions
    • PhD candidates from the ENGAGE.EU alliance
    • PhD candidates at other institutions
    • Motivated master’s students at NHH may be admitted after application, but are subject to the approval from the course responsible on a case by case bas

  • Recommended prerequisites

    No specific prerequisites, though familiarity with game theory, industrial organization and econometrics at the master or PhD level is beneficial.

  • Compulsory Activity

    Presentation.

  • Assessment

    Individual written assignment due 2 weeks after the last lecture. The assignment must be written in English.

  • Grading Scale

    Pass/fail.

Overview

ECTS Credits
5
Teaching language
English.
Semester

Autumn. Will be offered 30. September – 4. October 2024.

Course responsible

Professor Natalia Fabra, Charles III University of Madrid (main course responsible)

Associate Professor Morten Sæthre, Department of Economics (internal contact person)