Content: The purpose of this
lecture is to familiarize students with the basic notions and tools of
the analysis of energy markets and strategic behavior in these markets
with an emphasis on electric power and gas. The lecture consist of three
parts and is accompanied by a tutorial.
In the first part we focus on electric power. We look at the sector from three angles:
power generation, transmission, and `reliability management'; with two
issues in mind: the use of existing asset and the investment into new
assets.
Firstly, we address each of these issues from an
operations research view, explaining the various problems which have to
be solved in order to achieve an efficient power supply. Secondly, we
suggest how the efficient solutions can be implemented using
decentralized markets, if these were perfectly competitive. Thirdly, we
look at some problems which result from market power using
non-cooperative game theory. With market power, the market participants
will act strategically and try to `game' the rules to their advantage.
In
the second part, we will look at the international pipeline system for
natural gas, and discuss how investment and regulation can shape the
power structure. In this part we will be using notions from cooperative
game theory.
Organization: 4 hours lectures and tutorial per week (4sws). Home assignments will be discussed in tutorials
Prerequisites: Basic knowledge of microeconomics (optimization theory), game theory and industrial organization.
Examination: there is a written examination (90 min) counting for 6 ETCS at the end.
- Kursverantwortliche/r: Franz Hubert
- Kursverantwortliche/r: Nesrine Ouanes