Display language

#70129 / #7

Seit SoSe 2022


Energy Economics - Energy Sector Modeling (EW-MOD) (Energy Economics - Energy Sector Modeling)


Hirschhausen, Christian




Fakultät VII

Institut für Volkswirtschaftslehre und Wirtschaftsrecht

37311500 FG Volkswirtschaftlehre, insb. Wirtschafts- und Infrastrukturpolitik



H 33

Weyhing, Christoph


Learning Outcomes

The students study the basic principles of the energy sector in the current context of restructuring towards a no-carbon energy supply by 2050 and its common challenges as well as the creation of a European energy market. Students learn to apply the common academic methodology in energy economics, techno-economic analysis using numerical optimization in sample cases during the course and in a final project. Knowledge of methodology is taught in relation to the design and regulation of energy markets and applied by the students in sample cases during the module. Regular homework assignments require the students to work through academic research papers and train self-study. The students learn the basic principles of open science, specifically creating reproducable work using open source tools, open data and open results.


The module covers issues relating to the design of electricity markets with a high proportion of power generation using renewables. It also examines network-related fields and their interplay with regional generation and demand. Following a general introduction to the electricity sector, various special features of electricity as a good and their impact on the functioning of the electricity sector are derived analytically. In this context, the module examines the short-term pricing of a range of energy market products and necessary long-term incentives for system adequacy. The main methodology used is numerical modeling. The course teaches the open source programming language Julia and the use of open data platforms. - Introduction: basics of energy economics, energy transformation, and motivation of quantitative methods - Operation Research: recap of optimization and linear problems, graphic solution, simplex and standard form, duality and dual simplex - Dispatch Problem: electricity markets, merit order, economic dispatch problem, renewable generation, heating and storages in (linear) economic dispatch problems - Network: zonal markets, transport model, market prices, model prices (shadow prices/duality), nodal markets, linear power flow formulation, power transfer distribution factor (PTDF) matrix, locational marginal prices (LMPs) - Unit Commitment: mixed integer problems, minimum generation, startup and shutdown costs - Capacity Expansion: screening curves, overnight costs and annuity, greefield model of capacity expansion - Introduction to the Julia programing language

Module Components


All Courses are mandatory.

Course NameTypeNumberCycleLanguageSWSVZ
Energy Economics - Energy Sector ModelingIV71 150 L 9432SoSeEnglish4

Workload and Credit Points

Energy Economics - Energy Sector Modeling (IV):

Workload descriptionMultiplierHoursTotal
90.0h(~3 LP)
Class attendance15.04.0h60.0h
Class preparation and follow-up15.02.0h30.0h

Course-independent workload:

Workload descriptionMultiplierHoursTotal
90.0h(~3 LP)
Preparation of assignments5.06.0h30.0h
Preparation of paper and presentation1.060.0h60.0h
The Workload of the module sums up to 180.0 Hours. Therefore the module contains 6 Credits.

Description of Teaching and Learning Methods

Integrated classroom learning

Requirements for participation and examination

Desirable prerequisites for participation in the courses:

Knowledge in the area of Operations Research

Mandatory requirements for the module test application:

No information

Module completion



Type of exam

Portfolio examination

Type of portfolio examination

100 points in total



Test elements

Assignment 110written12 p./group
Assignment 210written12 p./group
Assignment 310written12 p./group
Assignment 410written12 p./group
Group presentation10oral20 min./group
Term paper50writtenmax. 20 p./group

Grading scale

Test description (Module completion)

The portfolio examination consists of the following elements, adding up to a maximum of 100 credits. The grading follows the joint conversion key of the School of Economics and Management (decision of the school's council dated May 28, 2014 - FKR VII-4/8-28.05.2014). The groups for the assignments, presentation and term paper usually consist of five students.

Duration of the Module

The following number of semesters is estimated for taking and completing the module:
1 Semester.

This module may be commenced in the following semesters:

Maximum Number of Participants

This module is not limited to a number of students.

Registration Procedures

Via email to orim@wip.tu-berlin.de

Recommended reading, Lecture notes

Lecture notes

Availability:  unavailable


Electronical lecture notes

Availability:  available



Recommended literature
Kirschen, Daniel and Strbac, Goran (2004): Fundamentals of Power System Economics
Stoft, Steven (2002): Power System Economics

Assigned Degree Programs

This module is used in the following Degree Programs (new System):

Studiengang / StuPOStuPOsVerwendungenErste VerwendungLetzte Verwendung
Industrial Economics (M. Sc.)16SoSe 2022SoSe 2023
Wirtschaftsingenieurwesen (B. Sc.)13SoSe 2022SoSe 2023
Wirtschaftsingenieurwesen (M. Sc.)13SoSe 2022SoSe 2023
Wirtschaftsmathematik (M. Sc.)13SoSe 2022SoSe 2023

Students of other degrees can participate in this module without capacity testing.


No information