Executive Course to master Electricity Markets
20 – 21 September 2018 | Florence
The FSR 2-day Executive Course to master Electricity Markets discusses the micro-economics of wholesale power markets and their implications for energy policies.
The course builds on key economic principles and an interactive approach to discuss current policy debates on the Clean Energy Package, the introduction of capacity mechanisms, of scarcity pricing, as well as the reform of renewables support mechanisms and of the European Emission Trading Scheme.
Get a taste of the course! Watch the video-lectures by the Course Directors:
OverviewThe FSR Executive Course directed by Thomas-Olivier Léautier (TSE) and Fabien Roques (Compass Lexevcon) discusses the micro-economics of wholesale power markets and their implications for energy policies.
Come to the Florence School of Regulation and find answers to these burning questions:
- What are the key market design developments proposed by the European Commission in the Clean Energy package?
- In particular, what are the best practices to introduce scarcity pricing via reforms of balancing and reserve mechanisms?
- How should we manage congestion on the transmission network?
- How should we design efficient electricity markets to achieve multiple policy objectives?
- What is the impact of renewables on electricity markets in the short-term and the long-term?
- How can an efficient interface with the European carbon trading Scheme be achieved? What does the latest ETS reform for phase 4 entail?
The aim of the course is:
- To understand the fundamental micro-economic principles underpinning electricity markets
- To discuss different wholesale electricity market models adopted by different countries and the lessons from 30 years of liberalisation on what works and what does not work
- To review the key market design developments proposed by the European Commission in the 2016 Clean Energy Package
- To discuss the potential for market power and present measures to mitigate market power
- To explain the long-term investment incentives, and the impact of price caps and other types of regulatory interventions on these incentives
- To describe objectives of the government’s environmental policies and their impact on the power industry and on energy companies
- To discuss the impact of market rules (for instance, those related to subsidies to renewables, capacity markets, etc.) for producers and retailers
The fundamental concepts of micro-economics of wholesale power markets
Long term supply and demand balance in power markets
- The optimal cumulative capacity in a power market
- The optimal generation mix
Designing wholesale physical electricity markets
- Characteristics and structures of electricity markets
- Scarcity pricing: the role and design of balancing mechanisms and reserves
- Managing congestion: Nodal pricing of power and other approaches
Market power, price caps, and missing money
- Market power and market power mitigation
- Market power detection tools
- Market power mitigation remedies
Markets, policies, and hybrid models
- Market power mitigation remedies
- The role and design of capacity mechanisms
- Possible approaches for cross border participation in capacity mechanisms
Environmental policies and hybrid models
- Environmental policies and their impact on electricity markets
- Design of market compatible renewables support mechanisms
- EU ETS effect on power markets
Expected learning outcomesAfter training participant will be able to:
- Critically assess the efficiency of different market designs in light of fundamental economic principles
- Indicate factors of markets’ limitations and take the right action to minimize market imperfections
- Use the optimal capacity and optimal mix criteria for achieving competitive markets
- Name controlling mechanisms designed and implemented by regulators
- Prevent and solve the missing money problem
- Consider tools to reduce carbon emissions and their economic impacts on the power industry
- Regard the impact hybrid models have for electricity producers and retailers
Thomas-Olivier Léautier is the Director of EDF’s Corporate University for Management and Associate Researcher at the Toulouse School of Economics.
Thomas-Olivier has worked in the electric power industry for twenty years, both as an academic and a practitioner, in North America and in Europe. He has published numerous scientific articles on the design of electricity markets. His book on electricity markets will be released by MIT Press in 2018.
Thomas-Olivier holds a PhD in Economics and a Master in Transportation from the Massachusetts Institute of Technology in Cambridge, USA, a Master in Science from Ecole Nationale des Ponts et Chaussées in Paris, France, and a Bachelor in Science from Ecole Polytechnique in Paris, France.
Fabien Roques is a Senior Vice President with the economics consultancy Compass Lexecon and an Associate Professor at University Paris Dauphine. His expertise spans European power and carbon dioxide (CO2) markets, with a specific focus on market design and regulation, strategy and restructuring, and asset valuation issues. Over the past decade, Fabien has worked on numerous tailored consulting assignments for clients, including major European utilities, financial investors, and European regulators. Previous roles included leading the IHS CERA European power and carbon research and consulting team, and contributing to the World Energy Outlook as a Senior Economist with the International Energy Agency. Fabien holds an MSc in engineering from the Ecole Centrale Lyon and a PhD in Economics from the University of Cambridge.
- Interactive learning sessions include lectures and working in small groups: Instructors will give lectures focusing on the theoretical concepts complemented by practical aspects. Working together on mini-problems and resolving case studies offers great opportunities to enhance the learning experience and to foster collaboration among participants.
- The limited number of executive participants: A small group of participants not only ensures an effective learning environment but also encourages open discussion between the course directors and participants and grants participants many opportunities for networking
- The online platform organizes training activities and consists of distinguished course material
Target group and knowledge level
Registration is open to all professional from the energy sector. The training is designed for experienced managers and targets professionals from energy companies and representatives from National and European Regulatory Authorities, but also academics and researchers.
No specific academic background is required although the knowledge of engineering or economics is highly recommended. The training is given in English.
Fee (accommodation included)The registration+accommodation fee for:
- Donors of the FSR: 1,700 EUR
- Other organizations or companies: 2,000 EUR
The registration fee covers:
- Course attendance
- Access to the accompanied online platform during the course
- 2 nights accommodation at a hotel in the Florence city center
- Coffee breaks, lunches, dinners
- Shuttle transport between the hotel and the training venue, back and forth
- Certificate of attendance