Regulation of the Power Sector

16 WEEK Online Course

All you need to know about the power sector and power systems around the world 

Power system regulation is never at a rest, and this is particularly true for the power systems of today.  In a world that is hungry for a reliable supply of electricity, regulation and reform of the power sector become the drivers for economic development. Several countries across the world have implemented energy sector reforms to improve their economic performances. 

This online course will highlight the connection between strategic governance of the power sector and economic growth. It will also provide the participants with the fundamentals for working in power sector regulation, whether in a regulatory commission, in a regulatory department within a company, or as a policymaker. 

Led by world-class experts, the course will give you a comprehensive understanding of the main concepts and ideas behind sector regulation from an engineering, economic and regulatory perspective. 

Participants will have exclusive access to the ebook version of ‘Regulation of the Power Sector’, edited by Ignacio Pérez-Arriaga for the duration of the course.

Course director
Carlos Batlle
  • Dates
    21 Mar 2023 - 13 Jul 2023
  • Level
  • Type
  • Workload
    4-8 hours/week
  • Register by
    13 Mar 2023

Welcome live class: 21 March 2023, 2 – 3 pm CET


Week 1: Regulatory models for energy systems

  • Energy services pricing: from regulated costs to price competition: Cost-of-service regulation. Incentive regulation. Competitive bidding. Market competition
  • Energy systems’ governance: activities, structure, and stakeholders’ roles: Unbundling. System and market operation

Live class 1 with Carlos Batlle (FSR/MIT): 23 March 2023, 2 – 3 pm CET

Week 2: Fundamentals of energy systems economics

  • Centralized versus market-based planning: Costs’ characterization: investment, average and marginal costs. Cost minimization versus profit maximization
  • Basics on energy contracts: Physical versus financial contracts

Live Class 2 with Pablo Rodilla (Comillas Pontifical University): 30 March 2023, 2 – 3 pm CEST

Week 3: Cost allocation methodologies

  • Practical case example of cost allocation: Discussion of a real life (non-energy related) case example of cost allocation
  • Cost allocation theory: Efficiency and equity. Long-run marginal costs. Residual costs

Live Class 3 with Carlos Batlle (FSR/MIT): 13 April 2023, 2 – 3 pm CEST


Week 4: Pricing electricity generation

  • Investment and operation planning: From central planning and operation to wholesale markets
  • Energy markets design elements: Market-based economic scheduling: Market models, bidding formats and clearing algorithms

Live Class 4 with Carlos Batlle (FSR/MIT): 20 April 2023, 2 – 3 pm CEST

Week 5: Complements to energy markets: ancillary services and capacity mechanisms

  • Flexibility markets: Intraday, reserves and regulation markets.
  • Capacity and RES-support mechanisms
  • Design elements of capacity and RES promotion mechanisms

Live Class 5 with Pablo Rodilla (Comillas Pontifical University): 27 April 2023, 2 – 3 pm CEST

Week 6: Leading Expert Webinar on current regulatory challenges for the wholesale electricity market

Leading Expert Webinar with Alberto Pototschnig (FSR): 4 May 2023, 2 – 3 pm CEST


Week 7: Interplay between transmission and generation

  • Locational pricing: Fundamentals of nodal (and zonal) pricing.
  • Regulatory treatment of transmission investment planning: Golden rules, net-social welfare maximization

Live Class 7 with Pablo Rodilla (Comillas Pontifical University): 11 May 2023, 2 – 3 pm CEST

Week 8: Regulated revenues and cost allocation

  • Remuneration mechanisms for distribution: Cost-of-service, RPI-X, TOTEX
  • Network costs allocation: Transmission and distribution tariffs

Live Class 8 with Carlos Batlle (FSR/MIT): 18 May 2023, 2 – 3 pm CEST

Week 9: Leading Expert Webinar on EU Electricity Network Codes 

Leading Expert Webinar with Leonardo Meeus (FSR): 25 May 2023, 2 – 3 pm CEST


Week 10: End-user tariffs

  • Principles and basic tariff structures: Efficiency & equity. Additivity, components.
  • Time and locational granularity: Dynamic, TOU, fixed.

Live Class 10 with Carlos Batlle (FSR/MIT): 1 June 2023, 2 – 3 pm CEST

Week 11: Retail markets

  • Business models: Retail activities, stakeholders’ roles.
  • Consumer protection: Data management, switching, vulnerable customers

Live Class 11 with Carlos Batlle (FSR/MIT): 8 June 2023, 2 – 3 pm CEST

Week 12: Leading Expert Webinar on Energy Communities 

Leading Expert Webinar with Sabine Löbbe (Reutlingen University): 15 June 2023, 2 – 3 pm CEST


Week 13: Regulatory Authorities

  • Case study on regulatory authorities

Live Class 13 with Leigh Hancher (FSR): 22 June 2023, 2 – 3 pm CEST

Weeks 14-15: Buffer weeks to work on final papers

Week 16: Final session

Final Live class with Carlos Batlle (FSR/MIT): 13 July 2023, 2 – 3 pm CEST


The course is given in English and developed for: 

  • Representatives from National Regulatory Authorities 
  • Professionals from the regulatory departments of energy companies such as Transmission System Operators and Distribution companies for electricity or gas, power generators or gas suppliers 

No formal background on energy regulation is required.


We designed this training to give you a solid grasp of the fundamentals, and start your journey towards becoming an energy regulation expert.

In this course you will learn:

  • Fundamentals of energy system economics, introduction to different regulatory models and the restructuring process of the power sector
  • Approaches to the regulation of transmission and distribution networks as natural monopolies and principles for the allocation of regulated costs
  • Market design of competitive electricity wholesale markets and its complements, being ancillary services and possibly capacity mechanisms
  • Regulatory and technological challenges for the widespread inception of retail markets
  • The interaction between regulated activities and competitive activities in the power sector 

At the end of the course, the participants can earn a Certificate of Attendance, a Certificate of Completion or a Certificate of Excellence, depending on their performance and engagement throughout the course. 


The training is led by Prof Carlos Batlle, who has been teaching the course “Engineering, Economics and Regulation of the Electric Power Sector” at MIT for the last ten years. Carlos will be supported by a group of leading experts in the field, who will channel their rich knowledge into interactive lectures, and live webinars.


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 by end of February 2023 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 31 January 2023.

Find more information here

  • General fee: 1430€ 
  • Students (with a certificate of current studies): 440€ 
  • Four free seats for Star Donors
  • Two free seats for Major Donors
  • One free seat for Associate Donors


Special offer for group enrolments: 10% discount from 5 participants from the same organisation


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. 

The Learning Approach
Personalised Learning
This course offers three different engagement levels, based on your prior knowledge and the amount of time you can dedicate to the course.
Live Class
Every week, participants-led sessions to deep dive in the topic and interact with your instructors. Live classes are always recorded.
This course gives you instant feedback on your activity in the form of badges. The badges will be converted in the final certificate, which can be shared on your social networks.
Collaborative knowledge
You will have the chance to collaborate with your peers from all over the word on a group project and discuss it with the main experts in the field. 
Course Faculty

Where participants come from

Any doubt?
Contact your course facilitator

Contact Elena
Ignacio Pérez-Arriaga

Power system regulation is never at a rest! Join us online for a comprehensive understanding of the power sector regulation from an engineering, economic and regulatory perspective.

What Participants say about this course

This course gave me the opportunity to indeptly understand the power sector from a regulatory perspective. It challanged me to go beyond noticing and pointing out the problems in the Nigerian power sector and equipping me with the knowledge to proffer solutions to the problems.

Chidera Okeke | Participant of 2022 Edition

The practical approach to this course helped deepened my understanding of electricity markets and also to appreciate the importance of regulation in success of the markets.

Participant of 2022 Edition

A well structured course that provides invaluable insights for anyone desiring to learn more about the workings of the power sector. Highly recommended!

Participant of 2021 Edition

Rich in content, crisp in delivery, highly recommend this course for anyone who wants to advance in the regulation of the power sector.

Participant of 2021 Edition

I really loved the online course on Regulation of Power Sector. It helps by going into the depths of power sector regulation. It was serious, interactive and involved a lot of independent research. I enjoyed the live classes at the end of each chapter. I can recommend this course for all interested in power system management.

Andris Piebalgs | Former Energy Commissioner

This online course is the most innovative and efficient crash course on power I have seen!

Susanne Nies | Managing Director Strategy & Communications, ENTSO-E

Although fully online, this course is supported by a dedicated team, and I could find personalized follow-up and helpful explanations when I most needed them. This was valuable input in addition to all videos, quizzes and teaching materials available during the course.

Corinne Theveniau | Project Manager at RTE France

Generally, a great course, excellently thought-over and managed, thank you very much!

Participant of the 2018 Edition

There is too much opinion and too little facts in other similar courses by other universities. This course is one of the few that looks at facts, present-day and probable past.

Participant of the 2018 Edition
Course in numbers
Completion rate

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