Energy Economics (Energiewirtschaft)

The English Lecture (this post isn't valid for the German version of the lecture)

The English lecture conductor:  Georg Erdmann

ATTENTION:  If you have studied similar topics before that covered these topics (listed below) from your previous studies, you should bring some proofs to Professor Erdmann, have him fill out the Antrag auf Anerkennung form (form) for Prüfungsamt registration, so you could get your course recognized by PEESE program and have this course requirement exempted.
- Energy balance
- Markets for fossil fuels
- Electricity markets including generation from renewable sources
- Markets for renewable energy
- Markets for energy efficiency technologies
- Use of modelling tools to evaluate innovations and state-regulation measures
- Impacts on energy demand
- Innovation processes
- Evaluation of energy systems

Studying for the exam:
The topic focus is different from year to year, i.e. the topic for 2008 was electricity, 2009 was natural gas and so on.  The focus topic means that it would weigh more on the exam.  If you attend the lecture, you'd notice what the professor focuses on the most.

Of course the basic ideas behind economics would be on the exam, so you have to explain or apply some concepts.  Studying the homework problems is very important, I guarantee similar problems would show up on the exam.  Some terms that are not on the slide shows but introduced in the lecture might show up in the exam (i.e.  what does "paper barrel" mean?)

During the exam, people tend run out of time, unless you know the topics by heart and can answer the questions very quickly.

Things to focus on:
- the topic focus of the year (recognizing if the topic is natural gas?  Electricity? Coal?  Fossil fuel?...)
- study and re-do your homework problems, make sure you know how to do them QUICKLY (to save time for other problems that demand more time and attention)
- pay attention to abbreviations for what they stand for and what they do
- study the slides for understandings and term memorizations

Ask yourselves if you could answer these things after studying (these problems showed up on 2009's exam)
Bilateral trade agreement related topics
- the differences between future and forward?
- the abbreviations, know what they stand for (i.e. OTC is?  What does it do?)
Resource economics/energy extraction topics
- What is Hotelling Rule?
- 2 uses for primary energy in renewable energy
- why energy economics take emissions price in variable cost
- peak oil
- surplus in emission trading (Prinzip des Zertifikatehandels, Lineare Preis-Absatz-Funktionund konstante variable Kosten)
- an example for unconventional oil and one for conventional oil
- merit order of different types of power plants and the surplus (on a marginal cost curve) and market clearing price and volume
- difference between higher heating value and lower heating value
- what is paper barrel?  (2008's exam)
Monopoly
- monopolist price graph (Preisbildung bei Monopol/Monopolpreisbildung/Pricing Decision in a Monopoly)
External cost
- what is the no pareto optimum/coase theorem?
FOR REFERENCE ONLY - if the topic were focused on natural gas (the topic focus for 2009, just for your study reference)
- 3 major European gas pipelines' names
- Russia has the largest natural gas reserve and where the pipe lines are located, what are their names?
- what are the 2 types of technology for extracting natural gas (porenspeicher and kavernenspeicher), what do they do?
FOR REFERENCE ONLY - similar problems from HW problems that showed up on 2009's exam
- WACC calculation
- HW: bid-ask curve and minimal cost load (know how to draw it)
- Residual supply index and what they mean
- volume traded (market clearing price, market clearing volume)
- input-output table
- fuel switching price
- Net present value and "fictitious" investment
- when to use annuity in total cost calculation
- emission trades between 2 parties (traded volume, price, the surplus...)
- opportunity cost (remember the flipping curves problem in the HW) (on 2008's exam)

My personal impression and remarks of the professor:
The lecture is conducted by a professor who is a bit obsessed with his degree and position.  He doesn't believe in global warming and that is fine, but he lectures as if it's a part of the lecture without telling the students that it is merely his own opinion.  He doesn't separate his opinions while lecturing, which could get a bit offending at times.  Such as telling the students how the economy melt down could have been prevented and what should have been done to prevent it in a way that presented himself as if he could have prevented it if he were in the position.  No doubt he is very intelligent in his field of lecture, but he only works in the field according to the rules and doesn't at all believe that carbon reduction is actually necessary.  His English is a bit difficult to understand and comprehend at times. So just focus on the lecture notes during the lecture and ignore his opinions, unless he is too fixated on the topic in an unacceptable and obsessive manner (which happens sometimes, like using too much of lecture time, defending his own position on the issue without offering different perspectives...), then ask him to continue lecturing.