Global Energy Policy gives an objective view of the world energy system and the energy transition
The course has been offered at SIPA and other schools (Yale, Georgetown, University of Queensland, Renmin University and Beijing Foreign Studies University) since 2010 and has been attended by hundreds of students
The course starts with a review of energy fundamentals and offers an objective view of the world energy system (demand, supply, flows, prices) and the energy transition which encompasses inter alia:
- Decelerating demand and rising energy efficiency
- Abundant fossil fuel reserves
- Climate awareness
- Super low cost variable renewable energies
- Decentralized generation
- New transport solutions
- Innovative business models (shale oil & gas, renewable energies finance)
Students will become familiar with databases and indicators, energy conversions, estimate levelized costs of electricity and simple climate models
The course relies heavily on the discussion of papers and on class debates although the typical class has a 50 minutes recitation It will include 2 out of class lectures (oil markets/shale gas and a panel with former Columbia students that are developing their careers in energy companies) and 3 in class computer- based projects
Levelized costs of electricity generation
Paris COP 21 simulation
China 2050 energy and carbon emissions modeling
In the last 3 classes students will have 2 options
Option 1: Select 1 among 6 topics to make a group presentation as if it was a job interview, or
Option 2: Present an investment or a consulting project to the class as if it was a client/ investor panel
Beijing energy week
Students that will opt for creating an investment/ consulting project will be offered the possibility to make its presentation at Beijing Energy Week that will be held in China in late May and will be attended by local venture capital investors
Class 1 Presentation. No ordinary disruption: The forces that are driving the structural transformation of the world economy
Class 2 Review of energy fundamentals: Units, conversions, energy balance, indicators, databases
Class 3 World energy balance: Resources abundance, decelerating demand, rapid technological change and new business models
Class 4 Oil markets: Lower for longer?
Class 5 Natural gas: Forget what you know about natural gas economics
Class 6 Power systems fundamentals: Thermal and renewable generation, regulated and deregulated markets, centralized and decentralized generation
Class 7 Class case study: Costs of electricity generation and storage
Class 8 Traditional utilities model under pressure (the utilities of the future)
Class 9 Class case study: Simulation of a 6- countries/ region international climate negotiation
Class 10 Case study: Simulation of a China energy sustainability 2050 scenario
Class 11, 12 and 13 Class debates/ presentation of investment projects
- Electricity market design and capacity markets
- The challenge of renewable energies integration
- Utilities of the future
- Germany´s energy policy
- Recent changes in the US energy policy
- New transport solutions
Manuel Pinho is affiliated to Columbia University since 2010. He was also a Visiting Professor at Georgetown (2015- 2016), Yale (2012- 13) the University of Queensland (2015) and University of Alicante (2017). He is a Guest Professor at Beijing Foreign Studies University and visited Renmin University of China.
Manuel Pinho started his career at the IMF and is a former Minister of Economy and Innovation in Portugal (2005- 09) and acting President of the 2007 EU Energy Council and is credited for the energy reform that transformed Portugal in a world leader in clean energies.
He authored Europe´s New Energy Era, the background paper of the EU Strategic Energy Technological Plan.
He was awarded Honors by the governments of Brazil, France, Germany, Norway, Spain and Sweden.
Doctoral degree, University of Paris X, BA in Economics, Technical University of Lisbon
BlogManuel Pinho MP21 https://manuelpinho.org
Manuel Pinho: Office 1313 IAB
Tuesdays 2:00- 5:00 PM, by appointment
Javier Mauricio Leon
Structure of the course
- Classes 1, 2
- Classes 3, 4, 5, 7 and 8
Recitation followed by a class presentation/ discussion of 1-2 papers by a team of 4-5 students Students should read the papers (marked * in the readings list) before the presentation/ discussion held in class
Presentation: 20 minutes, limit of 5 PPT
Discussion: 20 minutes
- Classes 6, 9 and 10
In class computer based simulation exercises
- Classes 11- 13
- Energy economics fundamentals (units, conversions, indicators)
- Economics (supply and demand, economic growth, cost -benefit analysis, externalities, principal- agent problems)
- Finance (cash flow, discount rate, WACC, LCOE))
- Climate science (global warming potential, Kaya identity, simplest climate model)
- Electricity markets (nameplate capacity, heat rate, load factor, fuel prices, emission factor).
- Class notes *
- Game changers in energy, World economic forum http://www3.weforum.org/docs/WEF_Game_Changers_in_the_Energy_System.pdf (Links to an external site.) Links to an external site.
- The future of Energy, Bloomberg Energy Finance https://about.bnef.com/summit/event/new-york/ (Links to an external site.) Links to an external site.
- Class notes *
- BP energy charting tool http://www.bp.com/en/global/corporate/energy-economics/energy-charting-tool.html (Links to an external site.) Links to an external site.
- IEA Energy Technology perspectives https://www.iea.org/etp/explore/ (Links to an external site.) Links to an external site.
- IEA statistics http://www.iea.org/statistics/statisticssearch/ (Links to an external site.) Links to an external site.
- IEA unit conversions http://www.onlineconversion.com/energy.htm (Links to an external site.) Links to an external site.
- Christof Rühl, et al, Economic Development and the Demand for Energy: A Historical Perspective on the Next 20 Years http://tarjomefa.com/wp-content/uploads/2017/02/6143-English-TarjomeFa.pdf (Links to an external site.) Links to an external site.
- BP Energy Outlook 2016 BP Energy Outlook, 2030 * http://www.bp.com/liveassets/bp_internet/globalbp/globalbp_uk_english/reports_and_publications/statistical_energy_review_2011/STAGING/local_assets/pdf/BP_World_Energy_Outlook_booklet_2013.pdf (Links to an external site.) Links to an external site.
- Beyond the super cycle, MGI * http://www.mckinsey.com/business-functions/sustainability-and-resource-productivity/our-insights/how-technology-is-reshaping-supply-and-demand-for-natural-resources (Links to an external site.) Links to an external site.
- Dale, Spencer, The new economics of oil, BP Energy Review, 2015 * http://www.bp.com/content/dam/bp/pdf/speeches/2015/new-economics-of-oil-spencer-dale.pdf (Links to an external site.) Links to an external site.
- Adjustment in the oil market, cyclical, structural or both? Bassam Fatouh, Oxford Institute for Energy Studies, 2016 *
https://www.oxfordenergy.org/wpcms/wp-content/uploads/2016/05/Adjustment-in-the-Oil-Market-Structural-Cyclical-or-Both.pdf (Links to an external site.) Links to an external site.
- Obstfeld, M., Oil prices and the world economy, it´s complicates, IMF direct https://blogs.imf.org/2016/03/24/oil-prices-and-the-global-economy-its-complicated/
- The forthcoming LNG wave, a case of crying wolf? Howard Rogers, Oxford Institute for Energy Studies, 2016 https://www.oxfordenergy.org/wpcms/wp-content/uploads/2017/02/The-Forthcoming-LNG-Supply-Wave-OIES-Energy-Insight.pdf (Links to an external site.) Links to an external site.
- Beyond the shale, aboard the price roller coaster, Carbon Tracker, 2016 http://www.carbontracker.org/wp-content/uploads/2016/04/CTI_Beyond-the-Shale_v2_06042016-2.pdf (Links to an external site.) Links to an external site.
- Class notes
- The end of the load for coal and gas, Carbon Tracker http://www.carbontracker.org/wp-content/uploads/2016/09/LCOE-report-v7.pdf
- Levelized costs of energy analysis, 10.0, Lazard * https://www.lazard.com/media/438038/levelized-cost-of-energy-v100.pdf (Links to an external site.) Links to an external site.
- Levelized costs of electricity storage 2.0, Lazard https://www.lazard.com/media/438042/lazard-levelized-cost-of-storage-v20.pdf (Links to an external site.) Links to an external site.
- Class notes *
- MIT report on the utility of the future * http://energy.mit.edu/wp-content/uploads/2016/12/Utility-of-the-Future-Full-Report.pdf (Links to an external site.) Links to an external site.
- Distributed energy: a disruptive force, BCG * https://www.bcgperspectives.com/content/articles/energy_environment_distributed_energy_disruptive_force/ (Links to an external site.) Links to an external site.
- The scissors effect *
https://www.oxfordenergy.org/publications/the-scissors-effect-how-structural-trends-and-government-intervention-are-damaging-the-major-european-electricity-companies-and-affecting-consumers/ (Links to an external site.) Links to an external site.
- How to avoid “zombie grids” in the age of solar power, Boston Consulting Group, 2016 https://www.bcgperspectives.com/content/articles/energy-environment-how-avoid-zombie-grids-age-solar-power/ (Links to an external site.) Links to an external site.
- Electricity market design for the 21st century, NREL, http://www.nrel.gov/docs/fy14osti/57477.pdf (Links to an external site.) Links to an external site.
- Germany´s Energiende, the end of power markets liberalization? https://www.bcgperspectives.com/content/articles/sustainability_energy_environment_germany_energiewende_end_power_market_liberalization/ (Links to an external site.) Links to an external site.
Class notes *
- Robinson, D., The significance of the US withdrawal from the Paris agreement on Climate changehttps://www.oxfordenergy.org/wpcms/wp-content/uploads/2017/06/The-Significance-of-the-US-Withdrawal-from-the-Paris-Agreement-on-Climate-Change.pdf (Links to an external site.) Links to an external site.
- Pascala, S. and R. Socolow, Stabilization wedges, Science, 2004 http://www.chemistry.mtu.edu/pages/courses/files/ch1120-sgreen/Climate_refs/socolow.pdf
- Caldecott, B., Why stranded assets matter, The conversation http://theconversation.com/why-stranded-assets-matter-and-should-not-be-dismissed-51939 (Links to an external site.) Links to an external site.
- Stranded Assets and Thermal Coal An analysis of environment-related risk exposure, Smith School of Enterprise, 2016http://www.smithschool.ox.ac.uk/research-programmes/stranded-assets/satc.pdf (Links to an external site.) Links to an external site.
- Mc Glade, C., P. Ekins, The geographical distribution of fossil fuels unused when limiting global warming to 2 ° C , Nature, 2015 http://discovery.ucl.ac.uk/1473878/7/McGladeNatureCM5.pdf (Links to an external site.) Links to an external site.
- C Roads https://www.climateinteractive.org/tools/c-roads/ (Links to an external site.) Links to an external site.
- Class notes
- China 2050 simulator
- EIA, Department of Energy, China Energy, Country Brief
- How China’s 13th Five-Year Plan Addresses Energy and the Environment, China File
- Fergus Green and Nicholas Stern, Structural change, better growth, and peak emissions, Grantham Research Institute, 2015,
- BP Energy Outlook, 2030, http://www.bp.com/liveassets/bp_internet/globalbp/globalbp_uk_english/reports_and_publications/statistical_energy_review_2011/STAGING/local_assets/pdf/BP_World_Energy_Outlook_booklet_2013.pdf (Links to an external site.) Links to an external site.
- EIA, Department of Energy, Technically Recoverable Shale Oil and Shale Gas Resources: An Assessment of 137 Shale Formations in 41 Countries Outside the United States, http://www.eia.gov/analysis/studies/worldshalegas/ (Links to an external site.) Links to an external site.
- Energy and Climate Goals of China´s 12th 5 Years Plan, Centre for Energy and Climate Solutions, http://www.c2es.org/international/key-country-policies/china/energy-climate-goals-twelfth-five-year-plan (Links to an external site.) Links to an external site.
- International Energy Agency, redrawing the energy- climate map, 2013, http://www.iea.org/publications/freepublications/publication/WEO_RedrawingEnergyClimateMap.pdf (Links to an external site.) Links to an external site.
- Exporting the American Renaissance, Global impacts of LNG exports from the United States, Deloitte, http://www.deloitte.com/assets/Dcom-UnitedStates/Local%20Assets/Documents/Energy_us_er/us_er_GlobalImpactUSLNGExports_AmericanRenaissance_Jan2013.pdf (Links to an external site.) Links to an external site.
- Energy Darwinism, the future of the energy industry, Citi Velocity, https://www.citivelocity.com/citigps/ReportSeries.action?recordId=21 (Links to an external site.) Links to an external site.
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