ICM301-Energy Finance

Module Provider: ICMA Centre
Number of credits: 20 [10 ECTS credits]
Level:7
Terms in which taught: Summer term module
Pre-requisites:
Non-modular pre-requisites:
Co-requisites:
Modules excluded:
Current from: 2019/0

Module Convenor: Dr Marcel Prokopczuk

Email: m.prokopczuk@icmacentre.ac.uk

Type of module:

Summary module description:

-    Introduction to energy 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


Aims:
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:

Intended 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



 



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:

Outline content:

-    Introduction to energy 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:      
    Revision and preparation 80
    Essay preparation 100
       
Total hours by term 0 0 200
       
Total hours for module 200

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

Summative assessment- Examinations:

One group project (40% of mark)


Summative assessment- Coursework and in-class tests:

Two MCQs – each 60min. Each test 30% of total mark.


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

Assessment requirements for a pass:

A minimum mark of 50%.


Reassessment arrangements:

Reassessment of project.


Additional Costs (specified where applicable):

Last updated: 1 August 2019

THE INFORMATION CONTAINED IN THIS MODULE DESCRIPTION DOES NOT FORM ANY PART OF A STUDENT'S CONTRACT.

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