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ECON4930 - Electricity Economics

Facts about this course:
Credits:10
Level:Advanced course at master's level
Teaching semester:Spring 2011
Examination semester:Spring 2011
Language of instruction:English
Administrated by:Department of Economics
Detailed course information - Current and previous semesters:

Course content

The course gives a systematic analysis of electricity-economics issues using economic theory for an electricity system based on hydropower alone and together with other generating technologies. The focus is on optimal management of given production capacities. The existence of hydropower with storage of water implies that the management problem is a dynamic one.

The main parts of the course are:

1. The first part consists of introduction to electricity economics involving hydropower, the analysis of the management problem within an aggregated pure hydropower system with a constraint on the amount of stored water, and extension to many hydropower plants. A social planning perspective is adopted.
2. The second part extends the analysis to include thermal generating capacities in addition to hydropower, and run-of-the river and wind generating capacities.
3. The third part introduces trade of electricity across national borders.
4. The fourth part extend the analysis to include network transport from produceres to consumers involving loss in the network.
5. The fifth part investigates market power based on monopoly.
6. The sixth part introduces stochastic inflows to the reservoirs.
7. The final part discusses actual organisations of electricity systems and lessons learned from the theoretical analyses above.

Learning outcomes

The students should:

  • know key qualitative results as to optimal social planning in electicity economics when hydropower is involved
  • have a satisfactory understanding of how to formulate dynamic management models using standard non-linear programming
  • understand how constraints on the generating system and uncertainty of inflows of water to hydro reservoirs affect the optimal path of social prices
  • be able to discuss actual market organisations in view of theoretical results obtained from the social planning analyses
  • be able to read and present literature on these topics.

Admission

Students at UiO must apply for courses in StudentWeb.

International applicants, if you are not already enrolled as a student at UiO, please see our information about admission requirements and procedures for international applicants.

The examination in this course is not available for external candidates. Only students admitted to the course may sit for the examination.

Prerequisites

Formal prerequisites

Bachelor's degree in Economics, or equivalent.

Recommended prior knowledge

Background in non-linear programming, e.g. ECON4140 - Mathematics 3: Differential equations, static and dynamic optimization / ECON4145 - Mathematics 3: Differential equations, static and dynamic optimization.

Teaching

Lectures: 2 hours per week throughout the semester.

Seminars: 2 hours per week through parts of the semester.

There might occur weeks exempt from teaching (where students are expected to do compulsory term paper).

Exam information

A 3-hour written exam.

Exam resources

No special exam resources are allowed.

Language of examination

The problem set will be given in English. Answers can be given in Norwegian, Swedish, Danish or in English. See § 6.4 i Forskrift om studier og eksamener ved Universitetet i Oslo .

Assessment and grading

Course grades are awarded on a descending scale using alphabetic grades from A to E for passes and F for fail. Read more about the grading system .

An external auditor regularly evaluates the academic quality of the course, including the form of exam used on the course.

Explanations and appeals

Students can request an explanation of their grades, and can also appeal against their grades or make a complaint about formal examination errors. Read more about explanations and appeals

Possibility of make-up exams and re-takes

The Department of Economics has passed following resolution for ECON-courses: It will no longer be possible for candidates to register for an exam in a lower level course after having passed exams in intermediate and advanced level courses in the same subject area (also where there are no pre-requisites that apply to the intermediate course). Further information can be found here.

Students who might wish to retake the exam later, are not guaranteed that the course is ever repeated with a similar reading list, nor that the exam arrangement will be the same.

You can usually resit an exam, but the conditions depend on whether you had a valid reason for absence from the regular exam. Read more about resitting an exam .

Withdrawing from exams and limits on re-takes

A student can sit for this exam up to 3 times. If a student wishes to withdraw from the exam, s/he must do this in StudentWeb at least two weeks prior to the first day of the exam. Failure to do so will be counted as one of the three opportunities to sit for the exam.

Exam options for students with special needs

Students may apply for access to alternative exam resources or exam forms on the basis of chronic illness and/or special needs that create a marked disadvantage to other students in the exam situation. Mothers who are breastfeeding may apply for extra time to complete the exam.

Contact us

Department of Economics

Visiting address: 
Moltke Moes vei 31, Eilert Sundts house, 12th floor

Visiting hours: 
10.15-11.00 and 12.15-15.00

Postal address: 
P.O box 1095 Blindern
0317 Oslo

Phone: +47 22855127
Fax: +47 22855035
E-mail: 
Web: http://www.sv.uio.no/econ/english/