--Economics and Finance of Energy--
Fall 2008 Course Calendar, Professor Chris Gadomski
Last updated October 15, 2008 --Please check frequently, topics and calendar subject to change.
1. September 3rd----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? Assignment: Please complete by September 24th, Twilight in the Desert Read also $105 Oil, See: 105oil.pdf
2. September 10th--Let's start with oil supply and demand and the changing economics. Are Saudi Arabian fields running out? If so, how much is left? Where does this leave us, what other options exist? A look at the Alberta Tar Sands, and the Venezuelan heavy oils. In class review: Bill Roach, UTC, powerpoint on Tar Sands.
3. September 17th--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? Assignment: Readings, Twilight in the Desert, Introduction to using a financing model, Renewable Energy Financing Model. See: http://analysis.nrel.gov/retfinance/login.asp, See also solar financing model on class website homepage.
4. September 24th--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. Assignment: Finish, Twilight in the Desert, Read: The Economics of Nuclear Power, See: http://www.smidirect.net/nyu
5. October 1st--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.
6. October 8th --PART TWO: 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: Read: Financing Energy Projects, Chapters 1-7. Investment: Risk, Return and The Role of Policy. HBR case 9-207-107, An Overview of Project Finance & Infrastructure Finance-2006 Update.
7. October 15th--Project Finance review continued. Financing Energy Projects, Chapters 8-11.
See also: Feeling the heat
8. October 22nd--Developing Project Finance Cash Flow. Revisit/review of NREL Model, Assignment: Read: The California Energy Crisis, Financing Strategy Gadomski, http://www.smidirect.net/published/catchthecredits.htm
8. October 29th--PART THREE--Special presentation, Analyzing and assessing the market for nuclear power in the US. Are the forecasters right? A look at the economic and financial obstacles to nuclear power development in the US?
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. Assignment: HBS Case: Enron: The Dabhol Power Project in Maharashta, India. What Went Wrong at Enron, See links posted on class web page regarding LNG
10. November 5th--Midterm (The mid-term will be a take home exam in-lieu of class on this day. I will post the exam on the blackboard on October 29th, and it is to be handed-in to me in class on November 12th as well as submitted to me through the digital drop box no later than 6:30 on November 12th.)
11. November 12th--Follow-up to Getting Projects Done, Class presentations.
Planning and developing wind projects--a first hand look at Cape Wind. Dealing with NIMBY obstacles in the project development process. Gadomski, http://www.smidirect.net/published/gimmeshelter.htm
12. November 19th--The Role of Carbon. (Speaker Invited, Date tentative) Putting it all together: Understanding Consolidation and Vertical Integration in today's energy markets. Class Presentations. HBS Case 9-706-015, E.ON Corporate Strategy
13. December 3rd--Semester Projects Due. Class presentations. Semester Wrap-up. Take Home Final Goes Live on Blackboard
14. December 10th--Last Class! Take Home Final in lieu of last class due in the digital drop box no later than 9:15
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