BLOCK I: THEORY AND PRINCIPLES OF REGULATION
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

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

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

BLOCK II: REGULATION OF ENERGY SUPPLY ACTIVITIES
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

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

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

Regulated revenues and cost allocation

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

End-user tariffs

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

Retail markets

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

Regulatory Authorities

• Case study on regulatory authorities

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 28 February 2022 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 9 January 2022.

Find more information here

• General fee: 1300€ 
• Students (with a certificate of current studies): 400€ 
• Four free seats for Star Donors
• Two free seats for Major Donors
• One free seat for Associate Donors

Discounts 

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

Contact: fsr.secretariat@eui.eu 

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.