ECC2460 · Energy markets and policy

Overview

In this unit you will learn how energy and associated environmental markets work (e.g. carbon markets), and the regulatory mechanisms that have been used or are available to achieve desired policy goals. Energy market policy often attempts to simultaneously achieve environmental, reliability and affordability goals – goals that usually work against each other. Analysts need to understand key economic and technological concepts to contribute to energy and environmental related policy debates. You will apply your understanding of these concepts to analyse Australian policy issues. The unit uses an electricity market game as a primary teaching tool. In the game, you will play the role of electricity generators and retailers in order to gain an understanding of how market rules (including carbon emission regulations and renewable energy mandates) affect the business strategy of market participants; and in turn economic and environmental outcomes. This hands-on participation will provide you with the opportunity to understand the economic incentives faced by energy market participants and the challenges faced by regulators.

Offerings

Assessment

The Handbook lists an examination for this unit.

Assessment details may change. Please refer to the assessment information in Moodle closer to the start of the teaching period.

Requisites

The Handbook lists no prerequisite, corequisite or prohibition for this unit.

Learning outcomes

1. understand the key physical and economic features of electricity markets that differ from more standard commodity markets
2. understand the economic incentives that energy market participants face and how they respond to different environmental policies
3. appreciate the complexity of designing energy and environmental policy that meets affordability, reliability and low-pollution goals with focus on the Australian situation
4. understand the main economic drivers for a variety of non-renewable and renewable energy sources.

Workload

Minimum total expected workload to achieve the learning outcomes for this unit is 144 hours per semester typically comprising a mixture of scheduled learning activities and independent study. Independent study may include associated readings, assessment and preparation for scheduled activities. You are expected to complete all pre-class activities prior to your scheduled class, and post-class activities should be completed after your scheduled class. Learning activities may include a combination of teacher directed, peer directed and online engagement activities.

Student experience, not official rules. Nothing here changes what the Handbook says.