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



#70129 / #7

Seit SoSe 2022

Fakultät VII

H 33

Institut für Volkswirtschaftslehre und Wirtschaftsrecht

37311500 FG Volkswirtschaftlehre, insb. Wirtschafts- und Infrastrukturpolitik

Hirschhausen, Christian

Weyhing, Christoph

POS-Nummer PORD-Nummer Modultitel
120026 28066 Energiewirtschaft - Elektrizitätswirtschaft
2347256 39023 Energy Economics - Energy Sector Modeling

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 Name Type Number Cycle Language SWS VZ
Energy Economics - Energy Sector Modeling IV 71 150 L 9432 SS English 4

Workload and Credit Points

Energy Economics - Energy Sector Modeling (IV):

Workload description Multiplier Hours Total
Class attendance 15.0 4.0h 60.0h
Class preparation and follow-up 15.0 2.0h 30.0h
90.0h(~3 LP)

Course-independent workload:

Workload description Multiplier Hours Total
Preparation of assignments 5.0 6.0h 30.0h
Preparation of paper and presentation 1.0 60.0h 60.0h
90.0h(~3 LP)
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

Name Points Categorie Duration/Extent
Assignment 1 10 written 12 p./group
Assignment 2 10 written 12 p./group
Assignment 3 10 written 12 p./group
Assignment 4 10 written 12 p./group
Group presentation 10 oral 20 min./group
Term paper 50 written max. 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

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):

This moduleversion is used in the following modulelists:

Verwendungen (1)
Studiengänge: 1 Stupos: 1 Erstes Semester: SoSe 2022 Letztes Semester: SoSe 2022

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


No information