Fundamental Economics for the Power Sector

Последна измена: March 30, 2023
1. Course Title Fundamental Economics for the Power Sector
2. Code 4ФЕИТ09Л014
3. Study program ЕЕС
4. Organizer of the study program (unit, institute, department) Faculty of Electrical Engineering and Information Technologies
5. Degree (first, second, third cycle) First cycle
6. Academic year/semester III/6 7. Number of ECTS credits 6
8. Lecturer D-r Vesna Borozan
9. Course Prerequisites Passed: Power Networks
10. Course Goals (acquired competencies): This course is designed to provide an insight in the microeconomic principles underlying the introduction of competition, theory of firm, market models, as well as in the basic models of regulation of natural monopolies.
11. Course Syllabus: Basic concepts from economics: microeconomics and macroeconomics. Basic concepts from market economics: Modeling of the consumption and production; Marginal production, Marginal cost; Producers’ revenue; Elasticity of supply; Market equilibrium, Global welfare and deadweight loss. Concepts from the theory of the firm: Long run and short run approach; Costs. Types of electricity markets: Spot market, Forward contracts and forward markets, Future contracts and futures markets; Options; Contracts for difference. Competition: Why competition? Markets with imperfect competition and market power; Models of imperfect competition- need for protection of competition and regulation. Definition of network energy, with focus on electricity; Natural monopolies in the electricity sector; Policy in the electricity sector, legal and organizational models of competition. Development of competition in the sector. Regulatory approaches; Costs; Revenues; Return of capital investments and pricing of network services.
12. Learning methods: Teaching the theoretical part of the course; Auditorium exercises and consultations; independent work on at least one project and a homework
13. Total number of course hours 3 + 2 + 0 + 0
14. Distribution of course hours 180
15. Forms of teaching 15.1. Lectures-theoretical teaching 45
15.2. Exercises (laboratory, practice classes), seminars, teamwork 30
16. Other course activities 16.1. Projects, seminar papers 30
16.2. Individual tasks 30
16.3. Homework and self-learning 45
17. Grading 17.1. Exams 0
17.2. Seminar work/project (presentation: written and oral) 10
17.3. Activity and participation 10
17.4. Final exam 80
18. Grading criteria (points) up to 50 points 5 (five) (F)
from 51to 60 points 6 (six) (E)
from 61to 70 points 7 (seven) (D)
from 71to 80 points 8 (eight) (C)
from 81to 90 points 9 (nine) (B)
from 91to 100 points 10 (ten) (A)
19. Conditions for acquiring teacher’s signature and for taking final exam Successfully completed the seminar and the independent homework, as well as, attendance of at least of 80% of theoretical teaching classes
20. Forms of assessment During the semester, there are two mid/end-term exams (120 min each). Besides these exams, any student must complete and submit the required homework and seminar assignments, according to the schedule published at the course web site.
The final mark is determined from the weighted average of scores from the exams, homework, and seminar assignments.
During the exams, it is not allowed to use any literature in printed or electronic form. Calculators are allowed, but not mobile phones, tablets or similar electronic devices.
21. Language Macedonian and English
22. Method of monitoring of teaching quality Student inquiry
23. Literature
23.1. Required Literature
No. Author Title Publisher Year
1 V. Borozan, P. Krstevski Economics for Engineers Internal textbook 2021
2 Dubravko Sabolic Introduction in microeconomics FER, Zagreb – Tekstbook 2014
3 Dubravko Sabolic State Regulation of Industry FER, Zagreb – Textbook 2015
23.2. Additional Literature
No. Author Title Publisher Year
1 N.Gregory Mankiw Principles of Microeconomics Cengage Learning 2015
2 N. Katic, V. Borozan, S. Halilcevic Power System Economics CEFES – EU Tempus Project CD JEP-18126-2003 2003
3 Donald G. Newnan, Ted G. Eschenbach, Jerome P. Lavelle Engineering Economic Analysis Oxford University Press 2004