• Demonstrate a good knowledge of fundamental energy economic principles
• Recognise the driving forces and the economic, regulatory, technological, environmental, social, and policy aspects of a business model within the energy sector
• Understand the link between a business model and the current and future challenges of the energy sector
• Discuss the link between a business model and the regulatory framework (e.g., policies, regulation, and market design)

Course content:

Energy is one of the world’s largest industries and has an essential role in economic activity and in our daily lives. At the same time, it is a major contributor to the depletion of natural resources, climate change, and environmental pollution.

In this context, the decarbonisation of the energy sector is a key element in mitigating climate change and maintaining security of supply. The Green Transition implies massive transformations in the energy industry and in energy-intensive sectors from technical, economic, social, and political viewpoints.

This course introduces the students to the analysis of the energy sector and its ongoing transformation from an economic perspective. In particular, it will familiarize the students with the economic characteristics of energy, sector organization, the transition towards sustainable and renewable energy, relevant business models, and the economic reasoning behind their regulatory framework. The lectures are based on 2-3 timely case studies. In the past these have been for example on offshore wind, demand-side flexibility and hydrogen/ power to X. These cases cover economic, technological, and policy aspects of selected business models within the energy sector.

This module is offered by the Copenhagen School of Energy Infrastructure (CSEI), a research centre at CBS, and it is embedded in its overall strategy of research and education.

Course structure:

The course will cover the following themes:

• Economics of energy use, energy demand, and energy supply.
• Technology and innovation, support mechanisms: renewable energy sources, their integration into the energy system, and support policies.
• Introduction to energy economics: sector organisation and governance, vertical relations, market power, market failures, economies of scale, externalities, natural monopoly.
• Introduction to regulatory economics: regulation of the energy sector, monopoly regulation and market design.
• Future challenges in energy economics and policy.

• Classic and basic theory
• New theory
• Teacher’s own research

• Analysis
• Discussion, critical reflection, modelling

3-week course that cannot be combined with any other course.

Precourse activity: The course coordinator uploads precourse activity on Canvas at the end of May. It is expected that students participate as it will be included in the final exam, but the assignment is without independent assessment and grading.

Main Literature – Selected Chapters from

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

Creti, A. and Fontini, F. (2019), Economics of electricity: Markets, competition and rules, 1st ed., Cambridge University Press: London.

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

Additional material

Collection of articles and policy reports