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

Email: m.prokopczuk@icmacentre.ac.uk

Type of module:

Summary module description:

-ÌýÌý ÌýIntroduction to energy markets: products, companies, production and consumption

-ÌýÌý ÌýCapital budgeting in energy companies: real options analysis

-ÌýÌý ÌýEmpirical analysis of energy markets

-ÌýÌý ÌýOil and gas markets

-ÌýÌý ÌýCoal market

-ÌýÌý ÌýBiofuels and renewables

-ÌýÌý ÌýElectricity markets

-ÌýÌý ÌýEnergy 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:Ìý

•ÌýÌý ÌýUnderstand the peculiarities of Ìýenergy markets and energy companies

•ÌýÌý ÌýUnderstand the concept of real options in the context of energy investments

•ÌýÌý ÌýUnderstand the concept of cointegration in the context of energy markets

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

•ÌýÌý ÌýHave a good understanding of the peculiarities of different energy markets

•ÌýÌý ÌýUnderstand how to value energy related derivatives securities

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

Ìý

Assessable learning outcomes:

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

•ÌýÌý ÌýUnderstand the peculiarities of Ìýenergy markets and energy companies

•ÌýÌý ÌýUnderstand the concept of real options in the context of energy investments

•ÌýÌý ÌýUnderstand the concept of cointegration in the context of energy markets

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

•ÌýÌý ÌýHave a good understanding of the peculiarities of different energy markets

•ÌýÌý ÌýUnderstand how to value energy related derivatives securities

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

Additional outcomes:

Outline content:

-ÌýÌý ÌýIntroduction to energy markets: products, companies, production and consumption

-ÌýÌý ÌýCapital budgeting in energy companies: real options analysis

-ÌýÌý ÌýEmpirical analysis of energy markets

-ÌýÌý ÌýOil and gas markets

-ÌýÌý ÌýCoal market

-ÌýÌý ÌýBiofuels and renewables

-ÌýÌý ÌýElectricity markets

-ÌýÌý ÌýEnergy 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.

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