| Learning objectives |
In formulating the synopsis and in discussions
during the oral exam, the student should demonstrate
- Broad knowledge of important substantive problem areas in the
energy transition, as listed in the course description.
- Basic knowledge of the theoretical frameworks encountered in
the course, as listed in the course description.
- .An ability to critically assess and select several of these
frameworks and apply them in an interdisciplinary manner to a
problem they choose within energy transition, either from a public
or private perspective.
- An awareness of how other theoretical frameworks from the
course may be relevant to the chosen problem.
|
| Course prerequisites |
| The course is open to students in the CBS EBA
M.Sc. program or equivalent. Some prior exposure to business
strategy and innovation is an advantage but not required. Knowledge
of microeconomics commensurate with a B.Sc. in business
administration is expected. No technical knowledge of energy and
power systems is required. |
| Examination |
|
The Energy
Industry in Transition: Markets, Innovation, and
Strategies:
|
| Exam
ECTS |
7,5 |
| Examination form |
Oral exam based on written product
In order to participate in the oral exam, the written product
must be handed in before the oral exam; by the set deadline. The
grade is based on an overall assessment of the written product and
the individual oral performance, see also the rules about
examination forms in the programme regulations. |
| Individual or group exam |
Oral group exam based on written group
product |
| Number of people in the group |
2-4 |
| Size of written product |
Max. 10 pages |
|
Definition of number of pages:
Groups of
2 students 5 pages max.
3-4 students 10 pages max.
Students who wish to have an individual exam might be able to write
a term paper in the course. Please see the cand.merc. rules for
term papers for more information. |
| Assignment type |
Synopsis |
| Duration |
Written product to be submitted on specified date and
time.
15 min. per student, including examiners' discussion of grade,
and informing plus explaining the grade |
| Grading scale |
7-point grading scale |
| Examiner(s) |
Internal examiner and second internal
examiner |
| Exam period |
Winter |
| Make-up exam/re-exam |
Same examination form as the ordinary exam
Same examination form as the
ordinary exam. If a student is absent from the oral exam due to
documented illness but has handed in the written group synopsis,
they do not have to submit a new product for the re-take exam. If a
whole group fails the oral exam, they must hand in a revised
synopsis for the re-take.. If one student in the group fails the
oral exam, the course coordinator chooses whether they will be
allowed to use the same synopsis, or the must hand in a new
synopsis for re-take exam.
|
Description of the exam
procedure
Groups are invited to give a brief 5 min. presentation of the
problem and theoretical frameworks chosen for the synopsis and an
indication of what different insights into the problem or
implications for business or public policy may be gained by
applying the chosen theories to the problem. Students will
then be asked individually to further explain these problems,
theories, and implications. During this questioning part,
they may also be asked to account briefly for other theories from
the course and how they might prove relevant for the
case.
|
|
| Course content, structure and pedagogical
approach |
|
Energy is essential for the functioning of modern economies, yet
at the same time, CO2 emissions from fossil-based energy use is by
far the largest contributor to global warming. In a Danish context,
energy products and services and carbon-reducing energy
technologies such as wind turbines, district heating, and
insulation, account for a significant proportion of our exports
(106,7 BDKK, or 11,7% of exports in 2020[1]) and employs about 75,000
persons[2]). To
ensure a sustainable future, the entire system of energy production
and consumption will have to be transformed in the decades ahead
from fossil fuels to renewable energy sources. Transportation
systems will have to be electrified to substitute renewable energy
for fossil-based fuels. The electrical grid, storage systems, and
consumption will have to be re-designed to accommodate for
intermittent sources of power like wind and solar energy. Energy
generation will increasingly become distributed among many
suppliers, from large, centralized power plants to individual
“prosumers”. Enormous investments are required in conversion
and sector coupling technologies, such as “Power-to-X”. These
changes represent both a huge challenge for society and an
opportunity for private enterprise.
The purpose of this course is to give you a thorough insight
into the energy industry, both from a private and public
perspective. You will be introduced to both existing and
future technologies and an understanding of how the unique
characteristics of the energy industry derive from the physical
realities of these technologies. Given the complex and
multi-faceted nature of the energy transition, we will analyze it
from different theoretical perspectives in an interdisciplinary
manner. Theories used include economics, business- and
innovation strategy, finance, life cycle assessment, and consumer
behavior.
The content of the course is very concrete, as we will involve
practitioner guest lecturers and arrange field visits to power
plants, waste treatment plants, experimental engineering labs, and
other relevant sites.
Specific problem areas covered are
- The overall challenges and opportunities we face in the
transition to a sustainable energy system, particularly the
large-scale conversion to renewable energy technologies.
- Recent developments in energy technologies and associated
costs.
- The environmental, social, and economic consequences of these
technologies and the tradeoffs between them.
- The systemic and complex nature of energy transition and the
uncertainty and controversy this gives rise to.
- How outcomes are affected by consumer behavior.
- The roles of policy making and market design at the local,
national, and supra-national levels.
- The challenges of financing energy-related ventures and
investments.
- The implications for business strategy and decision
making.
Theoretical frameworks employed are
- Economics of energy production, transmission, distribution,
storage, and consumption.
- Economics and functioning of power markets and ancillary
services.
- Economic theories underlying regulation and deregulation of
energy markets and greenhouse gas emissions, and how real-life
regulation is affected by politics.
- Consumer choice theory.
- The principles and real-life complexities of life cycle
assessments and carbon accounting.
- The dynamics and associated business strategies of innovation,
technology life cycles, transitions, and platforms.
- Investments and strategy making under uncertainty.
- Basic principles of finance and how they relate to energy
ventures and investments.
Nordic Nine areas that the course addresses
-
N1: You have deep business knowledge placed in a broad
context. The course provides a deep knowledge of the
energy industry, placed in the broader context of the transition
from fossil fuels to alternative energy sources.
-
N2: You are analytical with data and curious about
ambiguity. It reveals the complexities and uncertainties
of this transition and its environmental consequences
-
N3: You recognize humanity’s challenges and have the
entrepreneurial knowledge to help resolve them. It
outlines in concrete terms the challenge of the transition as well
as the opportunities it raises for new business
-
N5: You understand ethical dilemmas and have the
leadership values to overcome them. It highlights
the tradeoffs in different solutions to bringing down greenhouse
gas emissions and how they are ultimately guided by political
values.
-
N6: You are critical when thinking and constructive
when collaborating. Through its interdisciplinary approach
to the problems, it encourages critical reflection of the different
theoretical perspectives and their strengths and limitations.
-
N7: You produce prosperity and protect the prosperity
of next generations. It will enable participants to create
value for businesses while at the same time contributing to the
transition to a sustainable energy system.
|
| Description of the teaching methods |
| The course will combine lectures, in-class
discussions, and guest presentations by practitioners from the
energy industry and related public sector authorities. Sessions may
be conducted online if required by Covid-19 restrictions. In
addition, optional field trips will provide a concrete impression
of how the energy system works in real life. |
| Feedback during the teaching period |
| Feedback is provided indirectly during
interactive class discussions. Deeper feedback is available during
office hours, where students are encouraged to engage in more
in-depth conversations with the teacher |
| Student workload |
| Class attendance (including field classes and guest
lectures) |
33 hours |
| Miniproject + oral exam |
80 hours |
| Reading, preparation |
93 hours |
| Optional field trip |
10 hours |
|
| Further Information |
|
The course is part of the Minor in in Energy Economics and
Policy. If the course is oversubscribed, students enrolling
in this minor will be given priority. There will inevitably
be some limited overlap with the other courses in the Minor with
respect to frameworks and topics.
|
| Expected literature |
- Afuah, A.N. and J.M. Utterback (1997) Responding to
Structural Industry Changes: A Technological Evolution Perspective,
Industrial and Corporate Change, 6 (1): 183-202, 19 pp. EBSCO
Host, AN 11579992.
- Background reading: Shilling, M.A. (2017). Strategic
Management of Technological Innovation, 5th edition, New York:
McGraw-Hill. Ch. 2-5.
- BNEF (2021), Energy Transition Investment Trends.
Summary.
https://assets.bbhub.io/professional/sites/24/Energy-Transition-Investment-Trends_Free-Summary_Jan2021.pdf
- Courtney, H., J. Kirkland, and P. Viguerie (1997): Strategy
under uncertainty, Harvard Business Review, November-December, pp.
197-218. (12 p.)
http://esc-web.lib.cbs.dk/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=9711071077&site=ehost-live&scope=site
- Day, GS; Schoemaker, PJH (2011) Innovating in Uncertain
Markets: 10 Lessons for Green Technologies. MIT Sloan
Management Review 52(4): 37-45. 9 pp. Download from
http://sloanreview.mit.edu/files/saleable-pdfs/52411.pdf.
- Economist (2018). Royal Dutch Shell tries to reckon with
climate change.
https://www.economist.com/business/2018/12/08/royal-dutch-shell-tries-to-reckon-with-climate-change
- Eisenmann, T., G. Parker and M.W. van Alstyne (2006),
Strategies for Two-Sided Markets, Harvard Business Review, October:
92- 101. 10 pp. EBSCO host AN 22316862.
- Gawer and Cusumano (2008), How Companies Become Platform
Leaders, Sloan Management Review, Winter: 28-35. 8 pp.
Download via EBSCO Host, AN 28452300.
- Ghosh and Nanda (2010) Venture Capital Investment in the Clean
Energy Sector, Working paper 11-020, Harvard Business School.
(22 pp.) EBSCO Host, AN 67399185.
- Goldstein, N., Cialdini, R.B.; Griskevicius, V. (2008) A Room
with a Viewpoint: Using Social Norms to Motivate Environmental
Conservation in Hotels. Journal of Consumer Research
35(3): 472–82 (12 pp.). EBSCO Host, AN 34412781.
- Grant, RM (2016). Contemporary Strategy Analysis, 9th edition,
Wiley. (If you need to brush up on basic concepts of
strategy).
- Griffin, J. M., and S. L. Puller. (2005) Introduction: A
Primer on Electricity and the Economics of Deregulation, in
Electricity Deregulation: Choices and Challenges, University Of
Chicago Press. Source: Uploaded PDF.
- Hoffmann, V.H., Trautmann, T. and Hamprecht, J. (2009).
Regulatory uncertainty: A reason to postpone investments? Not
necessarily. Journal of Management Studies 46 (7), November, pp.
1227-1250 (23 p.)
http://esc-web.lib.cbs.dk/login?url=http://search.ebscohost.com.esc-web.lib.cbs.dk/login.aspx?direct=true&db=bth&AN=44218321&site=ehost-live&scope=site
- Holland SP, Hughes JE, Knittel CR, Parker NC. (2015). Some
Inconvenient Truths about Climate Change Policy: The Distributional
Impacts of Transportation Policies. Review of Economics &
Statistics, 97(5):1052-1069. doi:10.1162/REST_a_00452
- Longer introduction to the grid and smart grids:
https://www.youtube.com/watch?v=nJ-eBqEnraE
- Makovich L. The Electric Power Industry’s Missing Money
Problem, note, Foreign Affairs. 2015;94(2):138E. Source:
EBSCO Host, AN 100961116.
- McInerney, C., & Bunn, D. W. (2019). Expansion of the
investor base for the energy transition. Energy Policy, 129,
1240–1244 (5 pp.) EBSCO Host, AN 135931755.
- McKinsey (2017) Battery storage: The next disruptive technology
in the power sector. 6 pp.
- MIT Energy Initiative (2016) The utility of the future, report
(executive summary) 4 pp.
- Nordhaus W. (2010). Designing a friendly space for
technological change to slow global warming. Energy Economics.
2011;33(4):665-673. doi:10.1016/j.eneco. 2010.08.005
- Perloff (2012) Exhaustible resources, Section 16.3 in
Microeconomics, 7th edition, Pearson, p. 570-577, 8 pp.
Source: Uploaded PDF.
- Podcast Energy Transition Show (2017): [Episode #59] -
Lifecycle Assessment.
https://xenetwork.org/ets/episodes/episode-59-lifecycle-assessment/
- Podcast: Energy Transition Show (2020) Energy Basics Parts 4-6
– Electricity, Generation and Grid Management.
https://xenetwork.org/ets/episodes/episode-126-energy-basics-parts-4-5-6/
- Podcast: Energy Transition Show (2020) Energy Basics Parts 7-9
– The Electricity Business and Power Markets.
https://xenetwork.org/ets/episodes/episode-128-energy-basics-parts-7-8-9/
- Podcast: Energy transition show (2021). Making Climate
Policy Work.
https://xenetwork.org/ets/episodes/episode-141-making-climate-policy-work/
- Porter, M; Kramer, MR (2006). Strategy & Society - The Link
Between Competitive Advantage and Corporate Social
Responsibility. Harvard Business Review. EBSCO Host, AN
23081414.
- Reinhardt, F.L. (1999): Bringing the Environment Down to Earth,
Harvard Business Review, July-August: 149-157. 8 p. EBSCO Host, AN
1980088.
- RMI (2015) The economics of battery energy storage (executive
summary), Rocky Mountain Institute report. 6 pp.
- RMI (2015) The economics of demand flexibility (executive
summary), Rocky Mountain Institute report. 9 pp.
- RMI (2015) The economics of grid defection (executive summary),
Rocky Mountain Institute report. 4 pp.
- RMI (2015) The economics of load defection (executive summary),
Rocky Mountain Institute report. 13 pp.
- Rosenberg, N. (1995). Why technology forecasts often
fail, The Futurist, July-August, pp. 17-21 (5 p.)
http://esc-web.lib.cbs.dk/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=afh&AN=9507191471&site=ehost-live&scope=site
- Rotman, D. (2012) Can Energy Startups Be Saved? Technology
Review May/June 2012. (on-line version) (3 pp.) Download from
http://www.technologyreview.com/review/427665/can-energy-startups-be-saved/.
- Sartzetakis ES. (2021). Green bonds as an instrument to finance
low carbon transition. Economic Change & Restructuring
54(3):755-779. Source: EBSCO Host, AN 51584231.
- Schmalensee, R. (2012) Note on the economics of energy
demand. Teaching note, Sloan School of management.
Source: Uploaded PDF.
- Schoemaker, P.H. (1995). Scenario Planning: A Tool for
Strategic Thinking. Sloan Management Review. 36(2):
25-40.
- Short simple introduction to how the grid works:
https://www.youtube.com/watch?v=1dZjohZPIqE
- Sterman (2018) Hold on – is burning biomass bad for the
climate? Energy World, May 2018: 29-31.
https://mitsloan.mit.edu/shared/ods/documents?PublicationDocumentID=4581
- Svoboda, S (1995) Note on Life Cycle Analysis. Note. Univ. of
Michigan.
http://websites.umich.edu/~nppcpub/resources/compendia/CORPpdfs/CORPlca.pdf
- Thøgersen, J. (2017). Housing-related lifestyle and energy
saving: A multi-level approach. Energy Policy, 102, 73–87. (15
pp.) EBSCO Host, AN 121453496.
- Thøgersen, J. (2018). Frugal or green? Basic drivers of energy
saving in European households. Journal of Cleaner Production, 197,
1521-1530. (10 pp.) Download from
https://www.sciencedirect.com/science/article/pii/S0959652618319413
- Thøgersen, J.; Grønhøj, A. (2010). Electricity saving in
households - A social cognitive approach, Energy Policy, 38,
7732-7743. EBSCO Host, AN
54608343.
|
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