Energy Markets, Specialization Course

This course is wider than learning about energy markets. The course might also be called "Investment and operations under uncertainty", or "Commodity markets". The main bulk of content is within investment under uncertainty, i.e. real options analysis. Important examples and applications will be from the energy sector. Other content include commodity price models, energy derivatives, climate instruments and analysis of risk in energy portfolios.

The position and function of the course in the study program:
This course is one of two possible specialization courses in the Financial Engineering specialization, and is a 9. semester course in the MTIØT program. It builds on TIØ4140 Project Evaluation and Financing.

The course will convey the following knowledge:
- In-depth knowledge within real options analysis, i.e. analysis of investment under uncertainty
- In-depth knowledge within models for commodity price dynamics.

The course will develop the following skills:
- To work out a basis for decision support regarding valuation and strategic decisions in larger investment projects, where uncertainty is an important factor
- To develop quantitative models for real options
- Selection of quantitative models for commodity prices and other uncertainty factors.

Other important learning objectives:
The course aims to increase the students' theoretical knowledge and methodological skills needed for doing both practical and theoretical work connected to financial or economic analysis in industrial settings. Especially knowledge and skills supporting the writing of projects and master theses in finance.

The course usually consists of two modules. The modules consist of lectures and seminars.
Mandatory activities: There are about ten seminars in the course, and eight of these are mandatory. The first seminar in each module is mandatory.