Liberalisation and Regulation in Power Economics

11B0262

Bachelor

German

5.0

irregular

1 semester

The lecture "Liberalization and Regulation in the Energy Sector" conveys essential aspects of the liberalized energy market, focusing on the electricity sector and occasionally comparing solutions in the gas market. The lecture provides a brief introduction to the legal foundations and presents the current market model, once for network operation (quasi-monopoly) and once for the generation, trading, and distribution sectors, along with the key participants in each. Furthermore, the lecture covers the fundamentals of economic analysis and provides examples of methods for calculating network costs and incentive regulation. In addition, current key topics are addressed and explored, for example, in lectures, term papers (with a final presentation), or presentations.

1. Legal basis for liberalization and regulation in the EU and Germany
2. Explanation of the unbundled market model
3. Key participants
4. Economic analysis
5. Incentive regulation
6. Excursus: Analogies between the electricity and gas sectors
7. Current issues (selection)

The total workload for the module is 150 hours (see also "ECTS credit points and grading").

• Homework / Assignment or
• oral exam

Term paper with presentation to the course participants or oral exam. The exam format will be agreed upon at the beginning of the semester (standard case: term paper).

Graded Assessment:

• Term Paper: 10-20 pages, including any accompanying explanation: approx. 20 minutes
• Oral Examination: see General Section of the Examination Regulations

The students have a fundamental understanding of the distinction between liberalized and regulated parts of the grid-based energy transport system. They are familiar with the basic concept of capital cost accounting, including the distinction between total capital return and the breakdown into debt and equity interest.

The students have a basic understanding of exchange-traded and over-the-counter energy trading and the handling of physical discrepancies in generation and consumption using balancing groups. They have also grasped the fundamental principles of grid charge setting and incentive regulation.

The students are familiar with the technical terms and their meanings used in the field of liberalized (especially exchange-traded) and regulated (especially renewable energies) energy markets. The same applies to the regulation of energy network charges.

Students can perform simple economic calculations (present value method, annuity calculation of lump sums) and have a basic understanding of how to determine a calculated interest rate using the CAPM method.

Students can, in principle, understand, classify and explain changes in the behavior of electricity market participants and network operators in response to changes in the legal or regulatory framework.

• Vossiek, Peter

• Vossiek, Peter
• Wawer, Tim