New York University
School of Continuing and Professional Studies
M.S. Program in Global Affairs
The Economics and Finance of Energy, GLOB1-GC 2420
Fall 2011, Monday, 3:30-6:10pm
(Updated October 11, 2011)
INSTRUCTOR: Chris Gadomski
http://www.smidirect.net/nyu
OFFICE HOURS: Mondays by appointment
OFFICE PHONE:914.993.9060
E-mail:gadomski@nyu.edu
Course Calendar--Please check frequently as our schedule may change.
1. September 12th--PART One—The Economics of Energy: Getting a better grasp of energy supply and demand. Intro to topic, review of syllabus, review of semester project and financing models. How elastic is the demand for gas, oil and electricity?
2. September 19th--Introduction to project finance and to the online NREL wind financing model. Class to meet in computer lab. Hands-on instruction in use of the model. Assignment: Prior to class familiarize yourself with Introduction to using a financing model, Renewable Energy Financing Model. See: http://analysis.nrel.gov/retfinance/login.asp. For your final you will need to solve a problem with this or a similar computer model. Submit in writing to me your price forecast for oil, natural gas and uranium yellow cake for Dec 5, 2011. Reading: Downey, Chapters 1-3, Project Finance Primer for Renewable Energy and Clean Tech Projects
3. September 26th--(Tentatively scheduling this class for Friday, September 23rd) Let's start with oil supply and demand and the changing economics. Are Saudi Arabian fields running out? If so, how much is left? What about the rest of the Middle East. Where does this leave us, what other options exist? A look at the Alberta Oil Sands, and the Venezuelan heavy oils. In class review: Bill Roach, UTC, powerpoint on Tar Sands. Getting a handle on primary energy demand--how much primary energy do we use and how fast is it growing. Is peak oil for real? Are there new supplies available. If so, from where will it all come? Are there any other supply side solutions? Natural Gas? What about hydrogen? What about biodiesel? What about ethanol? What about coal-to-liquids? See also solar financing model on class website homepage. Group Assigments finalized, discussion of Group project. Reading: Downey, Chapters 4-6,
4. October 3rd--(Tentatively scheduling this class for Friday, October 7th) A look at electricity markets. What are energy externalities, (environmental, social, technological, health, political) how do we account for them in assessing power generation options? What are they, how do they effect the energy equations. What about the big one....carbon? How will this shape future generation option decisions. In class review: Steve Sprecher, EPRI, Economic Costs in a Carbon Contrained World. See: Financing Risk. Dealing with Risk, NIMBY, and new technology, Comparing power generation options. Why is coal cheap? Is nuclear power also inexpensive? Reassessing energy economics doing things differently with renewable technologies. Reading: Downey, Chapters 7-9,
October 10th--Columbus Day observed, no class today.
5. October 17th--PART TWO: Steve Sprecher, EPRI, Economic Costs in a Carbon Contrained World. Comparing power generation options, in class review continued. Working through the LCOE. A look at modern power generation economics...what is changing? Emergence of distributed generation, and the emerging role of solar and wind in the electric generation portfolio. Is this for real? What are feed-in tariffs, PTCs, RECs, and RPSs? See Feed-In Tariffs. Reading: PRIVATE FINANCING OF RENEWABLE ENERGY- A GUIDE FOR POLICYMAKERS -
6. October 24th--Project Finance review continued. Financing energy/power projects. Fundamentals of Project Finance, Challenges and sources of money. Understanding and defining risk in the non recourse project finance structure. Assignment: Readings: Financing Energy Projects in Emerging EconomiesDowney Chapters, 10-12,
7. October 31st--Energy Efficiency, Revisit/review of NREL Model, Reading: Downey, Chapters 13-16, Financing Energy Efficiency.
8. November 7th--PART THREE--Getting Projects Done. Putting the pieces together for a LNG financing. Looking at Successes and Failures, ie., Sempra's Energia Costa Azul, Enron and Dabhol. Reading:, Project Finance Primer for Renewable Energy and Clean Tech Projects, Downey 17-20.
9. November 14th--Follow-up to Getting Projects Done, Planning and developing wind projects--a first hand look at Cape Wind and other projects. Dealing with NIMBY obstacles in the project development process. I will post the take-home midterm exam on the blackboard, and it is to be handed-in to me in class on Nov 28th as well as emailed to me no later than 6:10 on Nov 28th.) Reading: Review selected documents at: Hardscrabble Wind Project
10. November 21st--Midterm, there will be a take home exam in-lieu of class on this day. Take home to be handed in November 28th.
11. November 28th--The Role of Carbon. Putting it all together: Understanding Consolidation and Vertical Integration in today's energy markets. Review of NREL Model. Reading: TBD.
12. December 5th--Take home final goes live on blackboard.
13. December 12th--Semester Projects Due. Class presentations. Semester Wrap-up.
14. December 14th--Take Home Final in lieu of last class due in my mail box outside of Room 441 no later than 6:10 and emailed to me.