THE UNIVERSITY of EDINBURGH

DEGREE REGULATIONS & PROGRAMMES OF STUDY 2019/2020

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DRPS : Course Catalogue : Business School : Common Courses (Management School)

Postgraduate Course: Energy Finance and Policy (CMSE11371)

Course Outline
SchoolBusiness School CollegeCollege of Arts, Humanities and Social Sciences
Credit level (Normal year taken)SCQF Level 11 (Postgraduate) AvailabilityNot available to visiting students
SCQF Credits15 ECTS Credits7.5
SummaryThe 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 will draw on both theoretical and applied concepts in delivering lectures on all topics. Lectures will also be delivered by experienced practitioners, with knowledge of structured and energy finance. In addition to introducing students to the wider literature on energy finance and policy related to energy, 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 financing energy projects.

Syllabus
Introduction to the course and overview of the UK's current energy value chain and key aspects of the institutional framework
Investment uncertainty and market redesign for low carbon investment
Networks: Distribution & transmission regulation
Retail markets and smart energy
New energy business models and the Political Economy of Sustainable Energy & Finance
Field trips to energy installations in the UK
Project Finance and Levelised Cost of Electricity
Energy Risk Management
Stochastic Modelling of Energy Projects in Excel
Experience Curve and Technology Learning in the Green Economy
Managing CO2 Issues and CCS Projects

Student Learning Experience
Formal teaching occurs in lectures, tutorials, computer lab sessions and field trips. 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 endeavor 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.
Entry Requirements (not applicable to Visiting Students)
Pre-requisites Co-requisites
Prohibited Combinations Other requirements For Business School PG students only, or by special permission of the School. Please contact the course secretary.
Course Delivery Information
Academic year 2019/20, Not available to visiting students (SS1) Quota:  None
Course Start Semester 2
Timetable Timetable
Learning and Teaching activities (Further Info) Total Hours: 150 ( Lecture Hours 18, Seminar/Tutorial Hours 13, Supervised Practical/Workshop/Studio Hours 4, Fieldwork Hours 10, Summative Assessment Hours 68, Revision Session Hours 2, Other Study Hours 32, Programme Level Learning and Teaching Hours 3, Directed Learning and Independent Learning Hours 0 )
Additional Information (Learning and Teaching) Preparing reading in advance of lectures
Assessment (Further Info) Written Exam 40 %, Coursework 40 %, Practical Exam 20 %
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
Main Exam Diet S2 (April/May)Energy Finance and Policy (CMSE11371)2:00
Learning Outcomes
On completion of this course, the student will be able to:
  1. Demonstrate a critical understanding of the principles of finance and apply the understanding to solving problems in the energy sector
  2. Describe and critically discuss the principal features of the energy industry, energy technologies, energy markets and capital markets
  3. Apply the main techniques of financial analysis, risk analysis and risk management, including stochastic modelling techniques applied to an energy project under conditions of uncertainty
  4. Critically evaluate financial decision-making within energy firms/utilities
  5. Develop overaching strategies for mitigating and/or transferring energy risks
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-ukelectricity-
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-energyfutures-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
KeywordsNot entered
Contacts
Course organiserDr Xi Liang
Tel: (0131 6)51 5328
Email: Xi.Liang@ed.ac.uk
Course secretaryMiss Yvonne Stewart
Tel: (0131 6)51 5333
Email: Yvonne.Stewart@ed.ac.uk
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