78456 - Economics And Management of Energy Utilities M

Academic Year 2023/2024

  • Docente: Lorenzo Nardon
  • Credits: 6
  • SSD: ING-IND/35
  • Language: English
  • Teaching Mode: Traditional lectures
  • Campus: Bologna
  • Corso: Second cycle degree programme (LM) in Electrical Energy Engineering (cod. 9066)

Learning outcomes

The course provides the basics for understanding the regulation of public utilities, the design of electricity markets and the guiding principles of business management for the energy sector. At the end of the course students are able to understand the main challenges of infrastructural and power investments, and can engage them both in public perspective of regulation and competition policy of utilities and in the enterprise perspective of capital budgeting. Futhermore students are finally able to identify key management issues of engineering, procurement, construction and operation phases of industrial projects, and can deal with them applying project and process management techniques.

Course contents

The course introduces the most relevant economic theories and empirical perspectives, from microeconomics to macroeconomics and regulatory economy fundamentals. Public policies and regulation such as competition, natural monopolies, renewable energy support, environmental policies and energy efficiency measures are analysed throughout the course. Economics of energy resources and markets, focusing grids and networks, traditional power and renewable energy are discussed focusing on major industry trends and dynamics. After an extensive overview of the market context, management and other business-related tools will be provided from project management to capital budgeting.

The course is divided in four modules:

  1. Introductory topics and basics of macroeconomics
  2. Energy and power regulation
  3. Energy markets, industries and technologies
  4. Management of energy companies and investment projects


No assigned textbook for the course. Lectures will be supported by power point presentations.

Lecture notes will be available at the web site AMS campus [https://campus.unibo.it/].

Some suggested readings (further publications / sources shall be shared during lectures):

  • IEA - International Energy Agency, World Energy Outlook 2022, and in general all IEA free publications (https://www.iea.org/publications/ )
  • IRENA - the International Renewable Energy Agency, World Energy Transitions Outlook 2023: 1.5°C Pathway, and other relevant IRENA free publications (http://www.irena.org [http://www.irena.org/] )
  • BNEF - Bloomberg New Energy Finance free publications (https://about.bnef.com/clean-energy-investment/ )
  • Mckinsey Global Institute free publications (http://www.mckinsey.com/mgi/overview )
  • BP, Energy Outlook 2023, http://www.bp.com/en/global/corporate/energy-economics/energy-outlook.html
  • Lazard Levelized Cost of Energy+, https://www.lazard.com/research-insights/levelized-cost-of-energyplus/

Suggested bibliography:

  • Pearce D W, Turner R K, Economics of Natural Resources and the Environment, Johns Hopkins Univ Pr (December 1989)
  • Kirschen D, Strbac G, Fundamentals of Power System Economics, John Wiley & Sons, (2004)
  • Introduction to Energy Analysis, third edition, Kornelis Block (2021)
  • Stoft S, Power System Economics: Designing Markets for Electricity, Wiley, (2002)


Teaching methods

  • Class lectures
  • Case studies / excel applications
  • Meetings / seminars with energy experts/business managers
  • Other activities

Assessment methods

Final exam consisting of:

  • Written test: multiple choice questions + open questions + exercises
  • Project work: groups of 3-4 students, whose presentations will be discussed in class and evaluated in the final exam
  • Oral exam: discretionary if the student has given the project work, mandatory if not

Office hours

See the website of Lorenzo Nardon