executive MBA subject 19

Fundamentals of Global Energy Business

Year 2, term D. 3.5 ECTS, about 88 hours, 4 parts. Part 1 is free.

task, condition, standard

What you will be able to do

Task, condition and standard

Task

Write a short research brief on one energy business decision, such as a power purchase or a renewable project.

Condition

Given market prices, project costs and policy information.

Standard

Value chain, costs, policy and risk are covered and the numbers are correct.

Who it is for: Managers working in or with the energy sector, from utilities to buyers of large amounts of power.

how this subject works

Free entry, voice and your learning style

Part 1 is free to try. Read it, listen to it and answer it before you decide. Join the programme, or this subject on its own, to open the other parts.

Listen. Every part has a Listen button that reads it aloud.
Speak or type. Answer each part by talking (press Speak) or by typing. Your answers stay on this device only.
Learn your way. Every part has a See, Hear, Do and Read-and-write route. Not sure which suits you? Take the eight-question learning-style check.

4 parts

The parts, with worked examples

Part 1 Energy markets and value chains 22 hUnderstand: explain

Energy moves from production to transport, conversion, trading and final use. Each step has different risks and margins.

Upstream: production
Midstream: transport and storage
Downstream: generation, retail and use

Worked example: Worked-example figures, in your currency. Daily power demand peaks at 900 MW in the evening and falls to 500 MW at night. Plants are called in order of running cost, cheapest first, until demand is met.

Activity: Draw the value chain for one energy source and mark where margins are highest.

Standard: Chain complete and margins reasoned.

Learn your way

See. Sketch "energy markets and value chains" as a picture: boxes, arrows and the key number.
Hear. Press Listen, or explain the worked example aloud to someone.
Do. Do the activity with your own work or a practice case.
Read and write. Write the idea in three lines in your own words below.

Your answer. Draw the value chain for one energy source and mark where margins are highest.

Part 2 Energy transition and renewables 22 hAnalyse: compare

Wind and solar have low running costs but vary with weather. Storage and grids balance them.

Capacity factor = actual output / maximum output
Levelised cost compares technologies over their life
Storage shifts power to when it is needed

Worked example: Worked-example figures, in your currency. A 10 MW solar plant produces 17,520 MWh a year. Maximum is 10 x 8,760 = 87,600 MWh. Capacity factor = 20%.

Activity: Calculate capacity factors for two plants.

Standard: Both correct and the difference explained.

Learn your way

See. Sketch "energy transition and renewables" as a picture: boxes, arrows and the key number.
Hear. Press Listen, or explain the worked example aloud to someone.
Do. Do the activity with your own work or a practice case.
Read and write. Write the idea in three lines in your own words below.

Your answer. Calculate capacity factors for two plants.

Part 3 Energy finance and policy 22 hApply: evaluate

Energy projects are long and capital-heavy. Policy, such as carbon prices or support schemes, changes their value.

Long contracts reduce price risk
Carbon prices raise the cost of fossil power
Policy changes are a key risk

Worked example: Worked-example figures, in your currency. A gas plant emits 0.4 tonnes per MWh. At a carbon price of 50 per tonne, cost rises by 20 per MWh.

Activity: Show how a carbon price changes the cost of two technologies.

Standard: Both costs adjusted correctly.

Learn your way

See. Sketch "energy finance and policy" as a picture: boxes, arrows and the key number.
Hear. Press Listen, or explain the worked example aloud to someone.
Do. Do the activity with your own work or a practice case.
Read and write. Write the idea in three lines in your own words below.

Your answer. Show how a carbon price changes the cost of two technologies.

Part 4 Energy strategy research 22 hCreate: brief

Bring markets, technology, finance and policy together in a short brief on one decision.

Answer first
Show costs and risks
Name the policy assumptions

Worked example: Worked-example figures, in your currency. A firm buying 50,000 MWh a year signs a 10-year contract at 60 per MWh, against a market average of 70: an expected saving of 500,000 a year if prices stay at that level.

Activity: Write a two-page brief on one energy decision.

Standard: Recommendation, figures and policy assumptions all clear.

Learn your way

See. Sketch "energy strategy research" as a picture: boxes, arrows and the key number.
Hear. Press Listen, or explain the worked example aloud to someone.
Do. Do the activity with your own work or a practice case.
Read and write. Write the idea in three lines in your own words below.

Your answer. Write a two-page brief on one energy decision.

ten checks

Check yourself

Say or write your answer first, then read the model answer.

Q1. Name the three parts of the energy value chain.
Model answer: Upstream, midstream, downstream. (Covered in part 1: Energy markets and value chains.)
Q2. In what order are plants called to meet demand?
Model answer: Cheapest running cost first. (Covered in part 1: Energy markets and value chains.)
Q3. What is a capacity factor?
Model answer: Actual output divided by maximum possible output. (Covered in part 2: Energy transition and renewables.)
Q4. 17,520 MWh from 10 MW. Capacity factor?
Model answer: 20%. (Covered in part 2: Energy transition and renewables.)
Q5. Why does storage matter for renewables?
Model answer: It shifts output to when it is needed. (Covered in part 2: Energy transition and renewables.)
Q6. 0.4 tonnes per MWh at 50 per tonne. Extra cost?
Model answer: 20 per MWh. (Covered in part 3: Energy finance and policy.)
Q7. Why do long contracts help energy projects?
Model answer: They reduce price risk and help funding. (Covered in part 3: Energy finance and policy.)
Q8. Name one key policy risk.
Model answer: Changes in support schemes or carbon prices. (Covered in part 3: Energy finance and policy.)
Q9. 50,000 MWh at 10 below market. Annual saving?
Model answer: 500,000. (Covered in part 4: Energy strategy research.)
Q10. What must a brief state about policy?
Model answer: The assumptions it relies on. (Covered in part 4: Energy strategy research.)

slides L1 to L7

The seven-level ladder, slide by slide

Slide 1: L1 Energy basics. From source to use. Speaker note: Say: put "energy basics" in one sentence and give one example from work. Check: ask one learner to say it back in their own words. Mistake: moving on before the numbers are clear.
Slide 2: L2 Markets. Demand curves and dispatch order. Speaker note: Say: put "markets" in one sentence and give one example from work. Check: ask one learner to say it back in their own words. Mistake: moving on before the numbers are clear.
Slide 3: L3 Renewables. Capacity factors. Speaker note: Say: put "renewables" in one sentence and give one example from work. Check: ask one learner to say it back in their own words. Mistake: moving on before the numbers are clear.
Slide 4: L4 Costs. Levelised cost and storage. Speaker note: Say: put "costs" in one sentence and give one example from work. Check: ask one learner to say it back in their own words. Mistake: moving on before the numbers are clear.
Slide 5: L5 Policy. Carbon prices and support. Speaker note: Say: put "policy" in one sentence and give one example from work. Check: ask one learner to say it back in their own words. Mistake: moving on before the numbers are clear.
Slide 6: L6 Finance. Contracts and risk. Speaker note: Say: put "finance" in one sentence and give one example from work. Check: ask one learner to say it back in their own words. Mistake: moving on before the numbers are clear.
Slide 7: L7 Energy strategy. A board-ready brief. Speaker note: Say: put "energy strategy" in one sentence and give one example from work. Check: ask one learner to say it back in their own words. Mistake: moving on before the numbers are clear.

how it is judged

Marking rubric

Marking rubric (Not yet, Meets, Exceeds)
Criterion	Not yet	Meets	Exceeds
Accuracy	Several figures or facts are wrong.	Main figures are correct and the working is shown.	Figures are correct and checked a second way.
Use of fundamentals of global energy business tools	Tools are named but not used.	The right tools are used for each step.	Tools are adapted to the case and their limits are stated.
Recommendation	No clear answer.	A clear answer backed by the analysis.	A clear answer that also says what would change it.
Communication	Hard to follow.	Answer first, clear and short.	Clear, short and persuasive under questions.

jobs this leads to

Where this takes you

Energy analyst. Studies markets and projects.
Energy procurement manager. Buys power and fuel for a firm.
Project developer. Builds renewable or grid projects.

language

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This subject is in English first. Choose any language and the page is translated for you by machine, with the English kept as the official text.

Keep going

All subjects Previous: Global Strategy Next: Consulting Methodology and Action Project

Draft for review. Not live. Credit values are aligned with the European credit system for orientation only and are not an accreditation.