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Executive Course to master Electricity Markets

The Florence School of Regulation opens a new 2-day course which will provide deep insight into the world of electricity markets.

 

Come to the Florence School of Regulation and find answers to these burning questions:

  • What are the efficiency properties of electricity markets and their limitations?
  • How should we manage congestion on the transmission network?
  • What is the purpose of capacity mechanisms? How should we best design them?
  • What is the impact of renewables on electricity markets in the short-term and the long-term?
  • How should we design electricity markets to achieve multiple policy objectives?

 

  • Overview

    The FSR’s new 2-day Executive Course to master Electricity Markets discusses the micro-economics of wholesale power markets and their implications for energy policies. The course illustrates the efficiency properties of markets as well as their limitations. It covers the short-term dispatch, the long term supply and demand balance. Environmental policies and their impact on electricity markets will also be examined.
  • Learning Objectives

    The aim of the course is:

    • To analyze the efficiency properties of spot markets and to better understand their limitations
    • To discuss different wholesale electricity market models adopted by different countries
    • 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 on these incentives
    • To discuss the role of capacity mechanisms, and efficient design rules
    • 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
  • Content

    The simple 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

    Organizing wholesale physical electricity markets

    • Characteristics and structures of electricity markets
    • Nodal pricing of power

    Market power, price caps, and missing money

    • Market power and market power mitigation
    • The missing money problem

    Markets, policies, and hybrid models

    • Environmental policies and their impact on electricity markets
    • Energy policies and hybrid arrangements
  • Expected learning outcomes

    After training participant will be able to:
    • 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
    • Indicate characteristics and structures of electricity markets and explain the mechanism of nodal pricing of power
    • 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
  • Course Directors

    Thomas-Olivier Léautier
    Thomas-Olivier Léautier is Research Director at the Toulouse School of Economics, and Professor of Management at the University of Toulouse Graduate School of Management (http://www.iae-toulouse.fr), where he created the Master in Risk Management.

    His two primary areas of interests are: (i) the electric power industry, in particular market and regulatory design to meet the decarbonisation challenge, and (ii) risk management strategy and operations, in particular Enterprise Risk Management.

    He has published numerous scientific articles on both topics, and a book on risk management.  He has developed and teaches graduate courses on power markets and risk management.
    Thomas-Olivier has led the development of executive education at the Toulouse School of Economics.  He has designed and led multiple executive education programs, for example “Electricity distribution in France: reconciling national and local objectives” with EDF the French leading electric power company, which has received two awards: CorpU in the United States and EFMD in Europe, “Electricity markets”, an introduction to the changing electricity industry for EDF’s high potential junior executives, and “Managing currency risks”, for Airbus’ suppliers.

    Prior to joining the University of Toulouse, Thomas-Olivier led a successful professional career.  He was Director of Risk Measurement and Control for Alcan Inc., a global aluminium and packaging firm based in Montréal, where he set up the risk management infrastructure.  Previously he worked as a management consultant with McKinsey and Company, a global management consulting firm, where he was a leader in the North American Electric Power and Natural Gas and Risk Management practices.

    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

    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.

  • Learning Portfolio

    • 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 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

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