Energy Economics & Policy

INTERNATIONAL TRAINING ON ENERGY ECONOMICS AND POLICY

COURSE BACKGROUND

The global energy landscape is characterized by an intricate “energy trilemma”: ensuring energy security, mitigating the threat of climate change, and managing volatile energy prices. This complex challenge necessitates a profound transformation in how energy is produced, delivered, and consumed across both developed and developing economies. A key aspect of this transformation involves meeting increasing electricity demands through more intermittent renewable resources.

ECAS Institute offers this “Energy Economics and Policy” course to provide a comprehensive understanding of these critical issues from an economic perspective. The course will delve into a variety of theoretical and empirical topics, examining energy demand, supply, pricing mechanisms, the dynamics of renewable versus depletable resources, and the environmental consequences of energy consumption and production. By demonstrating how core economic principles are applied within various energy-environment models, the course aims to equip participants with the knowledge to inform effective energy and climate policy.

COURSE OBJECTIVES OF THE TRAINING

On successful completion of this course, participants will be able to:

1. Critically evaluate the purpose of energy policy, as well as the diverse range of policy strategies and instruments available.
2. Explain how economic principles govern energy markets and the fundamental economics of energy supply.
3. Evaluate different approaches for energy market regulation.
4. Critically assess various approaches for the modeling of energy and environment interactions.
5. Identify and evaluate the key issues currently facing the energy sector, including the impact of smart technologies and challenges to energy security.

WHAT YOU WILL LEARN

This course will enable you to grasp the economic underpinnings of the energy sector and its policy implications. You will learn to:

• Critically analyze energy policy objectives and the various tools used to achieve them.
• Understand the economic forces driving energy markets, from supply and demand dynamics to the unique economics of different energy sources.
• Assess different regulatory frameworks applied to energy markets.
• Evaluate various modeling approaches used to understand the complex interactions between energy systems and the environment.
• Identify and discuss current and emerging challenges in the energy sector, such as the role of smart technologies and strategies for enhancing energy security.

DURATION AND PROGRAM

This is a structured training course designed to provide comprehensive insights into energy economics and policy. The program will combine theoretical explanations with empirical evidence, demonstrating how economic principles inform energy and climate policy. The detailed program schedule, including specific session timings and learning activities, will be communicated upon registration.

TARGET PARTICIPANTS

This course is designed for individuals with a broad interest in understanding and developing energy economics and strategy within the context of a sustainable future. It is particularly relevant for:

• Energy and facility managers
• Consultants in the energy or related sectors
• Local government planners
• Individuals working in entirely different sectors who are considering a change in career path towards energy.

TRAINING MODULES

The core content of this course is structured around key economic concepts and their application to energy systems and policy:

No	Module	Details
1.	Key Concepts and Economic Analysis of Energy Systems	This module introduces fundamental economic principles as applied to energy, laying the groundwork for understanding energy markets. Key Topics: Scarcity and opportunity cost in energy Supply and demand dynamics in energy markets Market failures and externalities in the energy sector Introduction to energy system components and interdependencies
2.	Economics of Energy Supply and Demand	This module delves into the economic factors influencing both the production and consumption of energy resources. Key Topics: Factors determining energy demand (e.g., income, prices, preferences) Factors determining energy supply (e.g., availability, extraction costs, technology) Economics of depletable (fossil fuels) vs. renewable resources Price formation and volatility in energy markets
3.	Energy Market Regulation and Governance	This module examines the different approaches and mechanisms used to regulate energy markets to achieve specific policy objectives. Key Topics: Rationale for energy market regulation Types of market structures (e.g., monopoly, oligopoly) and their implications Regulatory instruments and their effectiveness Governance structures in energy sectors
4.	Energy Efficiency and Renewable Energy Policies	This module focuses on the economic rationale and design of policies aimed at promoting energy efficiency and the uptake of renewable energy. Key Topics: Economic incentives for energy efficiency Policy mechanisms for renewable energy deployment (e.g., subsidies, feed-in tariffs, quotas) Cost-benefit analysis of energy efficiency and renewable energy policies Case studies of successful and challenging policy implementations
5.	Economic Modelling of Energy and Environment Interactions	This module explores various modeling approaches used to analyze the complex relationships between energy use, economic activity, and environmental outcomes, particularly climate change. Key Topics: Integrated assessment models (IAMs) Econometric models for energy demand and emissions forecasting Cost-effectiveness analysis of climate mitigation strategies Economic impacts of climate change on energy systems
6.	Energy Policy Theory and Practice	This module provides an overview of the theoretical underpinnings of energy policy and examines how these theories are translated into practical policy measures. Key Topics: Political economy of energy policy Stakeholder analysis in energy policymaking Policy implementation challenges and best practices Case studies of national and international energy policies
7.	Economics of Energy Security and Smart Technologies	This module addresses contemporary challenges such as energy security and the role of new technologies in transforming the energy sector. Key Topics: Dimensions of energy security (availability, affordability, accessibility) Strategies for enhancing energy security (e.g., diversification, storage, efficiency) Economic implications of smart grid technologies The role of digitalization and automation in energy systems
8.	Economics of Ancillary Services Markets	This module focuses on the economic aspects of ancillary services within energy markets, which are crucial for grid stability and reliability. Key Topics: Definition and types of ancillary services (e.g., frequency regulation, reserves) Market design for ancillary services Economic valuation of ancillary services Integration of intermittent renewables and ancillary services

TRAINING STYLE

The modules will be taught through PowerPoint presentations, and lectures and will include a case study/field visit, breakout sessions, case studies and other interactive discussion components.

The course will also include a few guest speakers, both in person and via Zoom and other online learning platforms for overseas speakers. This provides useful real-world insights alongside the more theoretical aspects of the course.

The conference faculty shall consist of experienced decision makers, as well as practitioners and representatives from established educational and research institutions active around climate change, engineering and international development. Throughout the course, theoretical presentation of concepts will be moderated and more group discussions and plenary engagements will be optimized. PowerPoint presentations will be made by facilitators and resource persons, to highlight key concepts before embarking on group work.

GENERAL NOTES

• Training manuals and additional reference materials are provided to the participants.
• Upon successful completion of this course, participants will be issued with a certificate.
• We can also do this as a tailor-made course to meet organization-wide needs. Contact us to find out more: info@ecasiafrica.org.
• Payment should be sent to our bank account before the start of training and proof of payment sent to: info@ecasiafrica.org.

ABOUT ECAS INSTITUTE

The ECAS Institute designs and delivers independent and targeted training, research, and consulting services. Our work focusses on climate change and resilience building, carbon markets, renewable energy, nature-based solution, biodiversity conservation, agriculture and food systems, We are located in Nairobi Kenya and work across the African region. We have implemented training and research assignments in Kenya, Tanzania, Uganda, South Sudan, Somalia, Malawi, Rwanda, Congo, and South Africa. Globally, we have supported our partners from the UK, Denmark, Italy, Sweden, Germany, and USA.