Quantitative Energy Economics [ LINMA2415 ]

> https://icampus.uclouvain.be/claroline/course/index.php?cid=LINMA2415

• Fluency in English at the level of course LANGL1330.
• Optimization (linear programming, KKT conditions, duality)
• Microeconomic theory (not necessary but helpful)
• Mathematical programming languages AMPL and/or Mosel (not necessary, but helpful)

• Energy market design
• Economics of energy markets
• Operations research applications in energy markets
• Contemporary problems (renewables, demand response, capacity investment and risk management)

With reference to the AA (Acquis d'Apprentissage) reference, this course contributes to the acquisition of the following learning outcomes:

• AA1.1, AA1.2, AA1.3
• AA2.2, AA2.5

At the end of the course, students will have learned to :

• explain the architecture of energy markets, ranging from real-time to forward markets
• formulate mathematical programming models that describe energy markets and regulatory interventions in these markets
• formulate mathematical programming models that describe risk management practices in the energy sector
• implement mathematical programming models that describe energy markets and risk management practices using AMPL
• implement algorithms that can be used for solving quantitative problems that arise in the energy sector using AMPL

• Written exam
• Course project and homework assignments

2 hours of magistral courses per week, and 2 hours of training sections per week. Homeworks and term projects will be evaluated by the instructor and/or the teaching assistant.

• Introduction to energy market modeling
• Electricity markets (unit commitment, transmission constraints, system security and reserves)
• Equilibrium models
• Investment planning
• Smart grid topics (wind / solar power integration, demand response)
• Quantitative methods (KKT conditions, mixed integer linear programming (MILP) models, modeling of risk aversion, stochastic programming)

• Course notes
• Printouts from textbooks or archived journals will be provided during lectures. A few textbooks that might be helpful as supporting material: Steven S. Stoft, "Power System Economics" / Daniel S. Kirschen, Goran Strbac, "Power System Economics"

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