ICM301-Energy Finance

Module Provider: ICMA Centre
Number of credits: 20 [10 ECTS credits]
Terms in which taught: Summer term module
Non-modular pre-requisites:
Modules excluded:
Module version for: 2017/8

Module Convenor: Dr Marcel Prokopczuk

Email: m.prokopczuk@icmacentre.ac.uk

Summary module description:

This module aims to provide students with an understanding of financial decision making in the context of the energy industry. The course will combine theoretical models with practical applications.

Assessable learning outcomes:

On completion of the module, students will be expected to be able to: 

•    Understand the peculiarities of  energy markets and energy companies

•    Understand the concept of real options in the context of energy investments

•    Understand the concept of cointegration in the context of energy markets

•    Understand how to manage the risk of energy related companies and investments

•    Have a good understanding of the peculiarities of different energy markets

•    Understand how to value energy related derivatives securities

•    Have a understanding of current challenges in the context of renewable energy and carbon emissions reductions

Additional outcomes:

Students will get experience in working with real world data and also experience how to conduct empirical analysis. Moreover, they will be familiarized with several local issues related to energy markets around the world.

Outline content:

-    Introduction to anergy markets: products, companies, production and consumption

-    Capital budgeting in energy companies: real options analysis

-    Empirical analysis of energy markets

-    Oil and gas markets

-    Coal market

-    Biofuels and renewables

-    Electricity markets

-    Energy spread trading and risk management

Brief description of teaching and learning methods:

Lectures will be used for both, the exposition of theory and for demonstrating applications to real world problems. There will be a total of 20h lectures. The techniques used to achieve the stated module objectives will consist of a combination of active teaching, question-answer sessions, problem solving, and class discussions.

Contact hours:
  Autumn Spring Summer
Lectures 20
Guided independent study 180
Total hours by term 200.00
Total hours for module 200.00

Summative Assessment Methods:
Method Percentage
Project output other than dissertation 60
Class test administered by School 40

Other information on summative assessment:

Mid-course MCQ 1            20%

Mid-course MCQ 2            20%

Group project                    60%


Formative assessment methods:

Penalties for late submission:
Penalties for late submission on this module are in accordance with the University policy. Please refer to page 5 of the Postgraduate Guide to Assessment for further information: http://www.reading.ac.uk/internal/exams/student/exa-guidePG.aspx

Length of examination:


Requirements for a pass:

Reassessment arrangements:

Last updated: 17 May 2017

Letter 'IPO.MODCAT1STKT' - Generation started at 17/May/2017 09:48:57.04.

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