Postgraduate Course: Energy Finance (CMSE11318)
Course Outline
| School | Business School |
College | College of Arts, Humanities and Social Sciences |
| Credit level (Normal year taken) | SCQF Level 11 (Postgraduate) |
Availability | Not available to visiting students |
| SCQF Credits | 10 |
ECTS Credits | 5 |
| Summary | The energy finance course aims to integrate conventional finance with energy finance. The course will provide a basis for understanding the links between conventional corporate finance and energy and carbon finance. The course will provide students essential skills for project cash flow assessment. |
| Course description |
The Course Organiser will draw on both theoretical and applied concepts and will be taught by experienced practitioners, with knowledge of structured and energy finance. In addition to introducing the students to the wider literature on energy finance, recent publications and case studies will be used to ensure that students will come away from the course with specific skills in the evaluation of risks and opportunities associated with energy finance. The International Energy Agency (IEA) estimates that US$10 trillion incremental energy investment will be needed between 2010 and 2030 to stabilize greenhouse gas emissions. Energy consumption accounts for the largest percentage of global greenhouse gas emissions, and the energy sector is likely to dominate global low-carbon investment in the decades to come. Thus energy finance is a core component of carbon finance. The trading of energy, and financial products associated with energy and carbon, is increasing at a rapid pace. This requires an energy or carbon finance professional to have a systemic understanding of the segments of the energy industry, the structure of energy markets, the uncertainties of energy policy, the development of energy commodities derivatives, the evolution of energy technologies and the challenges of financing and operating an energy project.
Syllabus
Corporate Finance Intensive Lecture Week
Introduction to Energy Finance and Energy Market
Project Finance and Levelised Cost of Electricity
Energy Risk Management
The Political Economy of Sustainable Energy & Finance
Experience Curve and Technology Learning in the Green Economy
Energy Finance Field trip
Energy Finance Revision
Student Learning Experience
Formal teaching occurs in lectures, tutorials, computer lab sessions and a field trip. Much of the learning will be the result of students' own reading and reflection, and preparation for coursework. A high level of student participation is expected, through discussion in class and working in groups. Scholarly endeavour is fundamentally about building on the discoveries and insights of others, and we hope that team co-operation will enrich all students. There will be time for questions and discussion in class as well as practice for cash flow and stochastic modelling in computer labs.
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Entry Requirements (not applicable to Visiting Students)
| Pre-requisites |
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Co-requisites | |
| Prohibited Combinations | |
Other requirements | None |
Course Delivery Information
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| Academic year 2019/20, Not available to visiting students (SS1)
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Quota: None |
| Course Start |
Semester 1 |
Timetable |
Timetable |
| Learning and Teaching activities (Further Info) |
Total Hours:
100
(
Lecture Hours 18,
Seminar/Tutorial Hours 13,
Supervised Practical/Workshop/Studio Hours 4,
Fieldwork Hours 10,
Revision Session Hours 2,
Programme Level Learning and Teaching Hours 2,
Directed Learning and Independent Learning Hours
51 )
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| Assessment (Further Info) |
Written Exam
40 %,
Coursework
60 %,
Practical Exam
0 %
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| Additional Information (Assessment) |
Written Examination 40% (assesses LO 1, 4, 5)
Coursework (Group report and group presentation) 60% (assesses LO 2, 3, 4) |
| Feedback |
Summative marks will be returned on a published timetable, which has been made clear to students at the start of the academic year.
Feedback will comprise students interpreting concepts during lab sessions, coursework assessment Feedback and generic examination Feedback. |
| Exam Information |
| Exam Diet |
Paper Name |
Hours & Minutes |
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| Main Exam Diet S1 (December) | | 2:00 | |
Learning Outcomes
On completion of this course, the student will be able to:
- Critically evaluate press coverage of energy finance issues
- Use a financial calculator for simple discounted cash flow analysis and bond valuation and use Excel-based modelling and simulation tools
- Co-operate with others from different professional, educational and cultural backgrounds to produce group analysis and present the results of group work and undertake simple financial computations, namely compounding and discounting in order to derive future values and present values for a series of cash flows
- Apply concepts in energy economics, such as levelised cost of energy, externalities and identify key stages in financing an energy project
- Categorise and quantify energy risk exposures and use basic financial methodologies, namely present and future value calculations, to solve problems in finance
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Reading List
GARP, 2009. Foundations of Energy Risk Management, Wiley Finance.
Fundamentals of Corporate Finance (Sixth Edition) by Richard A. Brealey, Stewart C. Myers and Alan J. Marcus. McGraw-Hill International Edition
James, T. 2008. Energy Markets: Price Risk Management and Trading, Wiley Finance.
Mott MacDonald, 2011. UK Electricity Generation Costs: Update.
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/65716/71-uk-electricity-generation-costs-update-.pdf
(Methodology Section)
Savage, S. L. 2003. Decision Making with Insight, South-Western College Pub.
World Energy Council, 2013. World Energy Scenarios: Composing Energy Futures to 2050. http://www.worldenergy.org/publications/2013/world-energy-scenarios-composing-energy-futures-to-2050/
International Energy Agency, 2014. Work Energy Investment Outlook. http://www.iea.org/publications/freepublications/publication/weio2014.pdf |
Additional Information
| Graduate Attributes and Skills |
- Knowledge and understanding
- Practice
- Team Working
- Generic cognitive skills
- Communication
- Independent research |
| Keywords | Not entered |
Contacts
| Course organiser | Dr Xi Liang
Tel: (0131 6)51 5328
Email: Xi.Liang@ed.ac.uk |
Course secretary | Mrs Kelly-Ann De Wet
Tel: (0131 6)50 8071
Email: K.deWet@ed.ac.uk |
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