Energy & Finance

Faculteit Economie en Bedrijfskunde
Jaar 2017/18
Vakcode EBM166A05
Vaknaam Energy & Finance
Niveau(s) master, uitwisseling
Voertaal Engels
Periode semester I b
ECTS 5
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Uitgebreide vaknaam Energy & Finance
Leerdoelen Upon completion of the course the student is able to:
1. Argue and analyze how to apply advanced finance methods to energy markets.
2. Apply continuous-time-finance methods to value simple and compound real options in energy investment projects
3. Analyze optimal strategies for using timing and operating flexibility in energy projects
4. Analyze value and risk characteristics of energy contracts and portfolios
Omschrijving This is a course in the MSc Finance which focuses on energy risk analysis and management. Almost all methods that are developed and used in financial market analysis can be used in energy markets as well. However, we concentrate on two general methods in particular and aim to deepen their understanding. These are real option analysis and energy instruments and derivatives. Firstly, real option analysis uses the mathematical methods of derivatives pricing to analyze the value of various types of flexibilities in (real) investment projects. The real option analysis so far has only remotely been touched upon in the finance curriculum and is perfectly suitable to apply in the valuation of energy projects. Secondly, we delve into energy risk management as, in energy markets, many risks are related to underlying cost structures and the characteristics of volatility of prices. Power prices for instance are related to the price of the fuels and to carbon prices. Some ‘fuels’ like wind and solar energy are intermittent whereas other aren’t. Power companies and (industrial) companies will be using different mixes of energy in their business. This suggests integrated risk management is required. In the course Energy Finance, we investigate how to assess the exposure of firms to a variety of energy risks regarding both their costs and revenues and study the management strategies regarding these risks.
This course is part of the focus area 'Energy'. When you focus your MSc on energy subjects you will be awarded an official acknowledgement on your diploma, improving and broadening your career opportunities in the energy sector. Prerequisites are mentioned in the Teaching and Examiniation Regulations: 'Focus areas in the master programmes'.
Uren per week 4
Onderwijsvorm hoorcolleges
Toetsvorm opdracht(en), schriftelijk tentamen met open vragen
Vaksoort master
Coördinator dr. G.T.J. Zwart
Docent(en) drs. M.E. Helmantel ,prof. dr. M. Mulder ,dr. G.T.J. Zwart
Verplichte literatuur
Titel Auteur ISBN Prijs
Investment under Uncertainty, Princeton University Press Dixit, Pindyck 9780691034102 ca. €  50,00
In addition, we will use a reading list of journal articles. This will be made available to all participants at the start of the course.
Options, Futures, and Other Derivatives, 8th edition Hull 9780273759072 ca. €  96,00
Entreevoorwaarden The course is mathematical in nature. Students are strongly recommended to have mathematical skills and background in finance comparable to those acquired in a minor in Finance or equivalent program.
Opmerkingen Secretary: Ellie Jelsema, e-mail: e.t.jelsema@rug.nl, room 5411.0836, phone: +31(0)50 3633685
Opgenomen in
Opleiding Jaar Periode Type
Courses open to Exchange Students (MSc)  ( Courses open to Exchange Students (MSc) without limited access ) 1 semester I b keuze
DD MSc Finance - Lund University, Lund (1,5-jarig)  (basisprogramma voor studenten uit Lund) 2 semester I b keuzegroep
DD MSc Finance - Lund University, Lund (1,5-jarig)  (basisprogramma voor studenten van FEB) 1 semester I b keuzegroep
MSc BA - Change Management  (keuzevakken MSc BA Change Management) 1 semester I b keuze
MSc BA - Organizational & Management Control/O&MC  (keuzevakken MSc BA O&MC) 1 semester I b keuze
MSc BA - Small Business & Entrepreneurship/SB&E  (keuzevakken MSc BA SB&E) 1 semester I b keuze
MSc BA - Strategic Innovation Management/SIM  (keuzevakken MSc BA-SIM) 1 semester I b keuze
MSc Economics  (keuzevakken B MSc Economics) 1 semester I b keuze
MSc Energie en milieukunde  (keuzevakken) 1 semester I b keuze
MSc Finance  (keuzevakken A MSc Finance) 1 semester I b keuze