Executive Course to master Electricity Markets

2 DAY Residential Course

Learn how to master electricity markets and key issues around their reform

The energy crisis that was triggered by the Russian war in Ukraine has led European power markets to unprecedented levels of prices and stress. It has also led to wide ranging policy interventions and calls for reforms of the wholesale electricity market design.

The course gathers a group of senior practitioners to discuss and share experiences about both the economic and political forces that drive the debate on the evolution of power and carbon markets to enable and support the decarbonisation of the power sector.

The course builds on key economic principles and an interactive approach to discuss current policy debates on the reform of electricity and carbon markets, with a particular focus on the high penetration of Variable Renewable Energy sources (VREs), and recent evolutions in Europe following high energy prices resulting from the war in Ukraine.

Early bird Discount
10% discount for registrations and payments made by 1 July 2024
  • Dates
    14 Oct 2024 - 15 Oct 2024
  • Level
  • Type
  • Register by
    26 Aug 2024

The development of wholesale electricity markets has started in the 1990s, to unleash the benefits of competition onto the previously monopolistic and regulated electricity industry. Since the early 2000s, fighting climate change has risen on top of the political agenda in Europe (and to a lesser extent in other regions). Green electrification of the economy, i.e., electrification of final energy demand and decarbonization of electricity generation, mostly through VREs, is a necessary first step to achieve the EU objective of Net CO2 neutrality by 2050. Facilitating large-scale VRE penetration has been added as an objective of electricity policies. In addition, a CO2 emissions market (EU Emissions Trading System, EU ETS) has been created, to induce emitters to abate their emissions (which is economic as soon as the price of an emission exceeds its abatement cost).

By and large, these policies have been successful: European CO2 emissions have been reduced to 2.7 Gt in 2002 from their 2006 peak of 3.7 Gt, the European wholesale spot electricity market is integrated and reasonably competitive, guaranteeing that at every hour European electricity demand is served (almost) at the lowest possible cost, and VREs represent a significant share of electricity generation in most countries.
Policy makers today face a challenging set of circumstances:

  • First, high shares of VREs (a success from the previous policies) generate new electricity price dynamics of with periods of low/negative prices and high volatility, the reduced captured prices for solar and wind in some areas, and increase the need for flexibility, i.e., electricity available when the sun does not shine or the wind does not blow. In addition, congestion on the transmission grid is increasing (in large part due to the connection of VREs), which leads to de facto price separation within some countries.
  • Second, the massive 2022 gas-then-electricity-prices increase has heightened the need for long-term contracts providing insurance to market participants. The resolution of the crisis has shown the limitations of the European governance of the electricity industry.
    Third, free CO2 emissions allowances granted to industrial companies are progressively scaled down, and the EU CBAM is implemented, which has a major impact on the EU ETS market and prices.

Designing electricity markets to simultaneously meet these challenges is a daunting task. This course aims to provide participants with a profound yet practical understanding of the necessary trade-offs involved.

Before the course, participants will receive access to an online platform where they will review materials on the theory of power markets and carbon pricing. The residential part will then focus on a range of lectures and group activities to discuss and deepen the understanding of the key economic concepts and how they confront in practice with policy makers’ objectives.


The FSR Executive Course directed by Thomas-Olivier Léautier (TSE and TotalEnergies) and Fabien Roques (FSR, University Paris Dauphine and Compass Lexecon) discusses the micro-economics of wholesale power and carbon markets and their implications for the restructuring of European electricity markets.

Take part in this course by the Florence School of Regulation and find answers to these burning questions:

Impact of the current crisis

  • How can the recent price surge be explained and what are the possible approaches to mitigate the impact on vulnerable consumers in the short-term?
  • What are the structural drivers of energy markets, now that they have entered a new area of instability and volatility?
  • What will be the longer-term legacy of the current crisis on EU electricity markets?
  • How will the current architecture evolve to balance electricity affordability, security of supply, and decarbonation?


  • 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?
  • What is the role and potential design of local flexibility platforms / markets?
  • How should we design efficient electricity markets to achieve multiple policy objectives?
  • How can the theory shed lights on the positions of different stakeholders on the key market design issues?
  • What is the impact of renewables on electricity markets in the short-term and the long-term?
  • What are the market and regulatory barriers to sector coupling?
  • How to define a more efficient interface between market and system operations? How will the role of TSOs and DSOs evolve?
  • How can an efficient interface with the European carbon trading Scheme be achieved? What does the forthcoming ETS reform entail?
Structure of the course

This residential course will be divided in 2 parts:

Module 1: Theory of power markets and carbon pricing (Online)
Readings and video lectures to be completed before the residential course

Module 2 (15-15 October 2024): Practice – Power markets and carbon trading in practice (Residential)
Residential lectures in Florence on the reform of the European electricity market architecture.


Theory: The fundamental concepts of micro-economics of wholesale electricity markets

Long term supply and demand balance in electricity markets

  • The optimal cumulative capacity
  • 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 such as local platforms for flexibility

Market design and system operation

  • The role of system operators and the EU (TSO) and US (ISO) models
  • The new challenges for system operation with high shares of RES
  • The evolving role of TSOs and DSOs

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

Support mechanisms for clean technologies

  • The economic rationale (positive externalities, economies of scale, etc.)
  • The evolution of the design of support mechanisms as technologies mature
  • State aid regulation and the impact of support schemes on markets

Emissions trading and the ETS

  • The theory of externalities and the foundations of carbon pricing
  • Lessons from 15 years of the EU ETS
  • Carbon leakage and mitigation policies in Europe
  • Potential reforms of the ETS and extension to other sectors (transport, buildings, etc.)
  • EU ETS effect on power markets
Learning outcomes

After the 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 and understand the design of capacity remuneration mechanisms
  • Discuss lessons from practice and experience of senior executives about the positions of different stakeholders on the key market design issues
  • 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
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, both utilities, TSOs and DSOs, NGOs, and representatives from National and European Regulatory Authorities, but also academics and researchers.

Please note that the training course is given in English and basic knowledge of engineering or economics is highly recommended.

Please do note that this is an Executive Course and only participants that meet the specific target requirements will be admitted. Participants are required to enclose to their registration form a short CV (max. 2 pages). Participants will receive a response regarding their admission two weeks after the registration deadline.


At the end of the course, participants will receive a Certificate of Participation.

FSR Annual Scholarships

Each year, the Florence School of Regulation – Energy and Climate (FSR Energy & Climate) awards scholarships for a wide variety of training courses targeting a broad audience of professionals and academics.

Applications will be assessed by a Selection Committee of FSR members on a yearly basis. The successful candidates will be informed after February 2024 and will be provided with all relevant information on how to enroll in the online course or residential training of their choice.

Send your application by 28 January 2024.

Find more information here

Fees & Cancellation Policy


  • General fee: 2,900€
  • Associate Donors: 2,610 €
  • Major Donors: 2,320 €
  • Star Donors: 2,175 €

Contacts: fsr.conferences@eui.eu

The course fee includes:

  • Access to the course material and the course platform
  • Recorded lectures
  • Residential classes held in Florence
  • Group work activity
  • Networking dinner and lunch

Please note that the course fee will only cover one dinner and lunch, not travel and accommodation costs.

Cancellation policy 

Paid registration fee is non-refundable. However, registrant substitution may be made up to 20 days before the start date of the course.

Logistic Info

Please arrange your travel and accommodation as soon as possible as Florence is very popular in this period.

Please note that the course fee does not cover travel and accommodation costs.

This is a fully residential training course, and classes will be held in Florence on 14-15 October 2024.
By submitting your application, you are committing to pay the corresponding fee.

Event venue
Sala Europa
Villa Schifanoia,
Via Giovanni Boccaccio 121,
I-50133 Firenze – Italy

Local transportation
Villa Schifanoia is easily reachable by taxi from Florence centre or from Fiesole (about 20€) and from Florence Airport (about 35€).

If you prefer public transport (ticket 1,50€ to be bought in official ticket offices, machines and authorised retailers that display the Autolinee Toscane sticker):

  • Take bus number 7 from the main railway station (bus stop: Stazione Nazionale) and get off at the stop ‘San Domenico 01’ (map) From there walk to our main building, Badia Fiesolana (map). Once there, ask the porters to direct you to the internal path connecting our campus (5-minute walk)


  • From the main railway station (bus stop: Stazione Nazionale) take bus n. 1B and get off at the last stop: Boccaccio Cino da Pistoia (map). Then walk up the hill to Villa Schifanoia (map)
The Learning Approach
Interactive learning sessions
Lectures focusing on the theoretical concepts complemented by practical aspects.
Resolving case studies
Opportunities to enhance the learning experience and to foster collaboration among participants.
Open Discussion
Open discussions between the course directors and participants as well as many opportunities for networking
Online Platform
Supportive material available online, before the course start.
Course Faculty

Where participants come from

Any doubt?
Contact your course facilitator

Contact Marina
Executive Course to master Electricity Markets

Learn how to master electricity markets and key issues around their reform. This course gathers a group of senior practitioners to discuss and share experiences about both the economic and political forces that drive the debate on the evolution of power and carbon markets to enable and support the decarbonisation of the power sector.

What Participants say about this course

his course is extremely helpful for anyone involved in electricity and carbon markets in Europe, especially at this point, when the markets are undergoing huge changes. Thomas-Olivier Léautier and Fabien Roques deliver very rich material in a concise form enriched by interactive exercises. While many courses moved completely online, it was great to attend in-person sessions at FSR. Market simulation games, case studies and contributions from other attendees greatly enhance the experience.

Participant of 2023 blended edition

Thomas and Fabien are extremely knowledgeable and very helpful when we had questions. They cover the fundamental economic principles well, and explained everything very clearly. The course was very well run by Marina, Elena, and the rest of the FSR team!

Participant of 2023 blended edition

This course comprises of lot of learning. New concepts were discovered during the discussions. Overall wonderful 5 star course.

Participant of 2022 online edition

I just completed the Executive course 2021 edition and I have to say that it was a great experience. The lectures were well-structured and the live classes combined with the supplementary readings produced a lot of animated discussions about how theory is implemented in practice. I particularly liked the use case assignment because it allowed diving deeper into the topics explored in the lectures and collaborating with a quite diverse group of people.

Katerina Drivakou - Researcher at UBITECH ENERGY

When I joined this course, I had no idea about Electricity Market. Now I not only know a bit of Electricity Market, I have learned about European Green Deal and much more about various European Countries. The video were short and to the point. Both Thomas and Fabien motivated us to pushed us to excel. The quizzes were brilliant and finally all the course participants were exceptionally great professional.

Participant of 2021 online edition

Great overview of how electricity markets function in theory and in the real world, and the political drivers for why those are rarely the same. Would recommend for anyone looking to understand the future drivers of power markets and the tough decisions that need to be made by the world's leading economies.

Participant of 2021 online edition

I highly recommend this course to anyone who wants to understand the electricity market both theoretically and practically. Working through the course material online is so flexible and I found it easy to fit my own time.

Participant of 2021 online edition

Just finished Florence School of Regulation - FSR Energy Executive Course to Master Electricity Markets: Two days of intense and very inspiring discussions on the microeconomics and the political economy of power market design and regulation, including new insights on how digitization and fast-growing renewables will shape the power market of the future!

Kora Töpfer - Public & Regulatory Affairs Officer at EPEX SPOT

A very interesting group that shared their opinions and visions about electricity markets and the challenges for decarbonisation and renewables integration under the Clean Energy Package .

Ricardo Francisco Pacheco - Senior Adviser of Markets and Consumers Division at ERSE

Just finalized the two-day Executive Course to Master Electricity Markets in Florence School of Regulation - FSR Energy. Great discussions on the implications of regulation, incl. the CEP, on having efficient European electricity markets to support the Energy Transition. Also took home some interesting reading to go even more into depth.

Louise Nørring - Business Analyst at Energinet

An interesting course about the key market design developments and challenges in electricity market integration. While priorities of the more matured markets may differ from those in the less matured electricity markets, fundamental principles underpinning electricity markets remain more or less the same.

Shahid Hasan - Policy & Regulatory Specialist and Fellow at KAPSARC

Very useful and great networking. I have started reading the book already and it is great as well!

Participant of 2019 Edition

I like the diversity of people in the group there were very interesting people.”

Participant of 2019 Edition
Course in numbers

FSR Alumni Day - 2nd edition

25 October 2024, Florence

Join us for a unique opportunity to reconnect and stay updated on the latest policy developments in the fields you previously studied.


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