MANAGING THE ENERGY TRANSITION

The course will explore economic theory and empirical perspectives related to the energy sector. The course is split into two separate parts. The first one will examine and compare fundamentals of various energy sources, with focus on the economics and energy market dynamics in light of energy transition and climate change environment. It will analyze how energy markets characteristics affect economic efficiency goals, will discuss approaches to evaluating the welfare effects and policies that are used to address market failures, including taxation, price regulation and deregulation, energy efficiency and control of emissions locally and on global level. The second part will be more empirical and business-oriented. It will explore the impact of clean technologies on the business landscape. It will start from the analysis of the growing global energy needs, identify a real case of an emerging energy-intensive technology (AI), delve into the renewable energy sector to understand the solutions actually available and the technological challenges, explain the importance of the energy transition as an element of competitiveness and innovation, along with analyses of the economic implications and risks associated with these transformations. The course will offer a deep dive into Generative AI as an example of an emerging technology with strong energy implications, for which we discuss practical implementations of the in-class theory. In this session there will be the opportunity to focus on the validation of the business model for companies operating in the energy transition space. The course aims at introducing students to current understanding and analysis of basic economic and business concepts that underlie energy all throughout its value chain, from production to end-uses, its geopolitical aspects and energy macro trends. Students should be enabled to understand how local, regional and global institutions affect energy markets. Become familiar with contemporary public policy issues related to energy sector. Comprehend fundamental concepts of the economics of natural resources. Apply the concepts learnt to the analysis of specific energy industries and policy questions. Students should be able to undertake their own analysis of energy issues.

It is assumed that all students have knowledge of basic macro and micro-economic principles.

• Knowledge and understanding: Understanding of basic economic and business concepts of energy sector value chain, its geopolitical aspects and energy macrotrends in light of energy transition and climate change environment. • Applying knowledge and understanding: Students attending this course are expected to apply the concepts learnt to analysis of specific energy industries and energy policy questions with focus on economic and business aspects. Students should be able to undertake their own analysis on energy issues understanding critical aspects and different/opposing positions and interests in light of energy and climate policies. • Making judgements: Students attending this course are expected to i) demonstrate critical thinking skills, identify key concepts in readings and describe the steps of an argument; ii) critically evaluate common readings in discussions with lecturers and fellow students. • Communication skills: Students will be evaluated based on their stance, energy, confidence and appropriate use of scientific language. • Learning skills: Students will be evaluated based on their ability to understand and apply all acquired knowledge to class and team discussions

Overview of the energy sector, Energy and Economic Growth, Geopolitics of energy, Energy mix and technologies, Energy Markets Fundamentals, Energy & sustainability & climate change, Carbon Markets, Energy Transition technologies, Electrification

There is no assigned textbook for the course. Lectures will be supported by presentations to be handed out before each class. Further reading material will be indicated during the course.

The course will consist of traditional lectures, cases analyses and meetings with the participation of energy industries experts on some of the topics included in the course program.

For attending students (students who participate actively in at least 70% of classes, recorded via BEACON system), the evaluation is based on the combination of two components: 1. Continuous Assessment (1/3 of final grade) includes: (a) Classroom participation: active participation during lessons, Q&A; (b) Exercises, case studies and paper analyses: resolution of tests and comments on articles provided during the course; (c) Project Work: research project based on a subject agreed with the instructors during the first 4 weeks of the course, prepared in groups of 2–3 students (approximately 10–15 pages word document or PPT presentation). Evaluation criteria: i. Exposition of the Executive Summary (15%); ii. Depth of analysis of the specific topics (35%); iii. Quality of the presentation (10%); iv. Critical thinking / personal view (25%); v. References & sources (15%). The PW must be completed and sent to the Professor at least 1 week before the final exam. The executive summary is based on a PPT presentation synthesising the main highlights of the PW. Students present the executive summary (5–10 minutes) during the last weeks of the course. Individual Continuous Assessment evaluations are binding and cannot be refused. 2. Final Exam (2/3 of final grade): written comment on an article and answers to related questions. The Continuous Assessment grade is valid only for exam sessions scheduled at the end of the teaching semester. In all subsequent retake sessions, students are assessed exclusively through the Final Exam (100%), and the Continuous Assessment grade is no longer applicable. Grades cannot be refused (for students enrolled from a.y. 2025/26 onwards). For exempted or non-compliant students (i.e. students who do not reach the 70% attendance threshold or have been granted an exemption by the Graduate School), the evaluation is based exclusively on a Final Exam (100% of final grade): written comment on an article and answers to related questions. Grades cannot be refused (for students enrolled from a.y. 2025/26 onwards).

Involvement during the lectures, exam result, interest on topics addressed during the course.