• 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

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).