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Economics and Financing Strategies for the Energy Transition (ETR13)

  • To be announced for 2027

Description

This course provides a comprehensive examination of the energy transition, moving from a general understanding to a detailed examination of its economic dimensions and financial, and strategic implications relevant to hydrocarbon-based economies. Participants will learn, evaluate and discuss energy transition investments at both company and system level, considering policy, market design, infrastructure constraints, and long-term competitiveness. The course adopts a multi-perspective approach, balancing technical, financial, policy, digital, and social dimensions in a non-ideological framework.

Course Level: Foundation
Duration: 3 days

Designed for you, if you are...

  • A professional with a technical background (e.g. engineering)
  • A professional with basic finance or project economics knowledge

How we build your confidence

The course consists of lectures complemented by interactive workshops, hands-on exercises, debates, role-playing, and data analysis.

The benefits from attending

By attending this course you will be able to:

  • Develop a comprehensive understanding of the energy transition, integrating technical, economic, financial, policy, digital, and social dimensions
  • Learn to assess the impact of various policy instruments (e.g., carbon pricing, subsidies, taxes) on investment decisions and project feasibility
  • Examine the economic and financial implications of emerging energy carriers (hydrogen, biogases) and technologies (CCUS, electricity storage)
  • Network with professionals by engaging with a diverse group from technical, financial, and policy backgrounds, fostering valuable connections and knowledge exchange
  • Exchange perspectives with peers across technical, financial, and strategic disciplines

Topics

Setting the Stage and Core Assumptions
  • Global Drivers & Rationale for the Energy Transition
    - Climate change fundamentals and the underlying assumptions
    - Analysis of climate, resource, and geopolitical imperatives
    - Market failures, externalities, and regulatory challenges
  • Fundamental Prerequisites and Core Assumptions:
    - Essential conditions (infrastructure, technology, regulation) required for a successful transition
    - Technology availability and localisation
    - Regulatory stability and investment certainty
    - Key cost drivers
    - Group Brainstorm: Challenges and preconditions for the energy transition

Economic Instruments and Financing Structures
  • Economic Tools and Policy Instruments
    - Fundamental tools for (financial) project evaluation (e.g., NPV, IRR, amortisation)
    - Evaluation of pricing mechanisms (carbon pricing, subsidies, taxes) that drive investment decisions
    - Workshop: Develop models to assess the impact of policies on investment flows and project feasibility
  • Financing the Energy Transition
    - Overview of financing models (debt, equity, PPPs, green bonds) and discussion on who ultimately pays for the transition
    - Fundamentals of Levelized Cost of Energy (LCOE)
    - Fundamentals of risk assessment
    - EU taxonomy for sustainable finance and sustainability reporting
    - Case Exercise: Discussing a basic project finance structure for a renewable project, including risk assessment and a potential sensitivity analysis
  • Market Prices
    - International electricity and energy commodity prices
    - Statistical analysis and comparison
    - Impact of geopolitical events on energy markets and prices
    - Forecasting ('standard' and machine learning)

Emerging Technologies
  • Emerging Energy Carriers: Hydrogen and Low-Carbon Molecules as biogases
    - Hydrogen value chains: production, transport, and end-use
    - Hydrogen: Review of recent technological developments, cost drivers, competitiveness, and analysis of recent market developments
    - Biogases (incl. synthetic gases, biomethane): Fundamentals, production economics, cost challenges, and market uptake
    - Interactive Debate: Evaluate the conditions required for hydrogen and biogases to be cost-competitive
  • CCUS Economics and Carbon Finance
    - Carbon Capture, Utilisation, and Storage (CCUS) fundamentals
    - Challenges for CCUS projects, including CAPEX/OPEX structures, carbon credit mechanisms, profitability thresholds and subsidies
    - Case Study: Estimate financial parameters for a CCUS project and discuss its integration within broader carbon markets

Electricity Storage, Policy and Integrative Workshop
  • Electricity Storage
    - Overview of batteries and alternative storage solutions
    - Technical limitations, cost trajectories
    - Investment gaps vs. over-investment
    - Economic value of flexibility and system services
  • Government Policy and Support Schemes for Renewable Energies
    - Selected national and international initiatives, directives, rules and regulations
    - Incentives and barriers to investment
  • Integrative Workshop
    - Teams refine their project finance models by integrating insights from renewable finance, emerging energy carriers, storage, and digital transformation
    - Discussion: Help compare assumptions and projected outcomes

Digitalisation, Network Extension and ESG Integration
  • Digital Transformation in Energy Systems
    - Potential and restrictions of AI in the energy business
    - Smart grids, distributed generation, and IoT, in modern energy infrastructure
    - Cybersecurity in the energy business
  • Extending Networks for an 'All-Electric Society'
    - Fundamentals, e.g., electrification of transportation, building and industrial electrification
    - Challenges as, e.g., investment requirements, and regulatory hurdles
  • ESG, Risk Management and Stakeholder Engagement
    - Environmental, Social, and Governance (ESG) criteria and risk management strategies as they pertain to energy investments
    - Impact of ESG on economic viability
    - Interactive Exercise: Role-playing negotiation and stakeholder engagement scenarios, where participants act as investors, regulators, and community representatives

Market Perspectives and Strategic Roadmaps
  • (Financial) Market View: Conventional vs. Renewable Energy Companies
    - Comparative analysis of share performances, performance metrics, risk profiles, and strategic positioning of fossil fuel companies versus renewable energy firms
    - Data Analysis Exercise: Evaluate financial indicators and market trends to assess competitive strengths and weaknesses

Closing and Synthesis
  • Final Presentations: Each team presents a comprehensive roadmap for advancing the energy transition, followed by a moderated Q&A session
  • Synthesise course learnings to propose integrated strategies that encompass technical, financial, infrastructure, digital, and ESG perspectives


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