English   Danish

2023/2024  BA-BHAAV6040U  Sustainability and Business: Energy Markets, Competition, and Regulation

English Title
Sustainability and Business: Energy Markets, Competition, and Regulation

Course information

Language English
Course ECTS 7.5 ECTS
Type Elective
Level Bachelor
Duration One Semester
Start time of the course Autumn
Timetable Course schedule will be posted at calendar.cbs.dk
Max. participants 60
Study board
Study Board for BSc in Economics and Business Administration
Course coordinator
  • Christine Brandstätt - Department of Economics (ECON)
Main academic disciplines
  • Economics
Teaching methods
  • Blended learning
Last updated on 08-02-2023

Relevant links

Learning objectives
The aim of this course is two-fold. First, to learn about the explanatory capacity of theory and models of market design, subsidies, network regulation and competition policy in the energy sector. Second, to apply economic analysis to an increasingly sustainable and international energy context to understand energy businesses’ challenges. Given the demand for professionals specialised in economics and law in the energy business, one of the key objectives of this module is to provide the students training in economic aspects on which economic regulation and competition policy for the energy sector are based. The aim is to enable the students to:
  • Understand the historical, current and future trends in the energy sector
  • Understand the implications of political goals, e.g., regarding sustainability and decarbonization, for the energy sector
  • Describe the main assumptions of economic models of competition and monopoly
  • Describe the general energy organization and governance of the energy sector and the related economic regulation
  • Describe the main players in the energy sector, their interests and their interactions
  • Discuss different roles and steps in energy supply or related business models from an economic perspective
  • Discuss current changes and innovations in the energy sector, their implications and interaction with regulation and market design
Course prerequisites
Mandatory prerequisites: Working knowledge of microeconomics. Interest in the application of microeconomics to energy economics, regulatory economics, and industrial economics.
Sustainability and Business: Energy Markets, Competition, and Regulation:
Exam ECTS 7,5
Examination form Written sit-in exam on CBS' computers
Individual or group exam Individual exam
Assignment type Written assignment
Duration 3 hours
Grading scale 7-point grading scale
Examiner(s) One internal examiner
Exam period Winter
Aids Limited aids, see the list below:
The student is allowed to bring
  • An approved calculator. Only the models HP10bll+ or Texas BA ll Plus are allowed (both models are non-programmable, financial calculators).
The student will have access to
  • basic IT application package
Make-up exam/re-exam
Same examination form as the ordinary exam
The number of registered candidates for the make-up examination/re-take examination may warrant that it most appropriately be held as an oral examination. The programme office will inform the students if the make-up examination/re-take examination instead is held as an oral examination including a second examiner or external examiner.
Course content, structure and pedagogical approach

The energy sector is one of the largest and easily one of the most critical sectors in the economy. At the same time, it is a major contributor to environmental pollution, greenhouse gas emissions, and depletion of natural resources. The climate crisis is one humanity’s major challenges to overcome in this time and the decarbonisation of the energy sector is a crucial element in mitigating climate change and a key item of the recently signed European Green Deal and REPowerEU.


In this course, we teach the organization of the energy supply chain, energy market design, subsidies and network regulation. We apply a subset of microeconomic theories which form the basis of business opportunities in this sector.


The particular characteristics of energy as a commodity as such call for a dedicated sector organization. Since the liberalisation of the energy sector, some segments have been opened to competition while others have remained as regulated natural monopolies. In addition, decarbonization and sustainability efforts have introduced new players and but also additional regulation and market interventions.


This course introduces students to the energy sector from a economics and business perspective and familiarizes them with the basic cocepts of energy markets, network regulation and support for renewable energy. The course combines microeconomic concepts, particularly from industrial organization, with their application to the energy sector.


The course develops along the following topics and structure:


  • Economics and political economy of energy supply and climate change, national policy and international cooperation
  • Microeconomics of energy use, energy demand, and energy supply
  • Sector organization and energy supply: theory and pricinples with a focus on electricity, gas and heat supply
  • Economics of investment in renewable energy technologies and business models for innovative energy services
  • Market design and competition in energy markets: theory and pricinples with a focus on electricity wholesale
  • Introduction to monopoly regulation, theory and principles with a focus on networks and utilities for electricity, gas and heat


This module is endorsed by the Copenhagen School of Energy Infrastructure (CSEI) at CBS and it is embedded in its overall strategy of research and education. CSEI is directly supported by the European Commission (DG Energy).

Description of the teaching methods
There will be lectures where students are expected to participate actively, study questions, case studies, and supportive video material.
Feedback during the teaching period
Through oral discussions in class, cases and quizzes
Student workload
Lectures 38 hours
Preparation for lectures 142 hours
Preparations for the exam 25 hours
Exam 3 hours
Expected literature


Mulder, M. (2021). Regulation of Energy Markets (Vol. 80). Springer International Publishing.


Selected chapters from:


Bhattacharyya, S.C. (2019). Energy Economics: Concepts, issues, markets and governance, 2nd ed., Springer.


Cretì, A., and Fontini, F. (2019). Economics of Electricity. Markets, competition and rules. Cambridge University Press.




Additional material

Collection of articles and policy reports 

Last updated on 08-02-2023