Course detail

Economy of Electrical Power Engineering

FEKT-MKC-EELAcad. year: 2024/2025

The main goal of the course is to build on the information and knowledge acquired by students during their bachelor studies in economics and ecology of power engineering, and follow up with the issues of economic efficiency in power systems, operation optimization of power systems and business aspect of electricity. The subject Economics of Power Engineering is compulsory, as the knowledge and understanding of the connections between power engineering and the economy are fundamental parts of the knowledge portfolio of engineers and graduates of the Institute of Power Engineering.

In this course, emphasis is placed both on a comprehensive understanding of the theoretical basis of power engineering economics and the solution of practical examples and exercises demonstrating dependency and case studies that contribute to a better understanding of the topic. In addition to numerical exercises, the course also includes computer exercises where students learn options to solve many tasks using advanced mathematical and scientific software tools.

Language of instruction

Czech

Number of ECTS credits

5

Mode of study

Not applicable.

Guarantor

Ing. Lukáš Radil, Ph.D.

Department

Department of Electrical Power Engineering (UEEN)

Entry knowledge

Knowledge at the Bachelor's degree level and knowledge of BEEE subject are required.

Rules for evaluation and completion of the course

Marking in the subject is based on these components:
- Evaluation of exercises in the form of credited tests or a semester project.
- Evaluation of computer exercises where the student works out the specified task.
- Evaluation of the final exam.
- Evaluation of student activities. These points are extra credit for voluntary, independent and active solving of tasks and examples, etc. The bonus points are given by the subject teacher and are entirely based on his/her subjective assessment and are his/her responsibility.

The points ratio from particular parts of subject and the conditions for obtaining credit and tests are specified by the teacher at the beginning of the semester.

Lectures on the subject are optional but students’ attendance is recommended. The lectures are intended to provide a complete understanding of the topic and a number of key conflict issues and problems are covered. Attendance at lectures presented by invited experts will be recorded, and will be included in the overall evaluation of the course and might influence the total point score.
Computer exercises and training in profesional basics are optional. Drawing up an individual task or project is mandatory.

Aims

The aim of the course is to familiarize students with basic and direct connections and dependencies between issues and topics of a purely technical nature of power engineering and the economic aspects of any solution. The goal is to show students and encourage them to understand that power engineering and the economy are intertwined, and that understanding of this relation is a necessary part of knowledge for every engineer and power engineering graduate.
The study outcome is not intended to create an independent economist or project manager in the field of power engineering. After completing the course, student will probably not be able to carry out extensive and comprehensive economic analyses of the electricity market and energy operations. However, the student should be able to work out, along with a technical project in power or electrical engineering respectively, an elementary economic analysis containing a basic evaluation of economic efficiency and return on investment of the project and will be able to explain and answer the following questions:

- What characterizes the cost of the power loss and electricity loss?
- What are the costs of power and energy?
- What is the problem of choosing the appropriate line section?
- What is an economical line section?
- What is the importance of the costs of transformers?
- What is the economic burden of transformers?
- What methods are used to optimize the operation of the electricity system?
- What comprises the price of electricity?
- What methods are used for pricing electricity, and which method is applied in the Czech Republic?
- What are the methods of promoting renewable energy (OZE), what is their principle, advantages and disadvantages?
- How is the electricity market implemented?
- etc.

Study aids

Not applicable.

Prerequisites and corequisites

Not applicable.

Basic literature

Creti,Anna; Fontini,Fulvio. Economics of Electricity. 2019, Cambridge Univerzity Press. ISBN: 9781316636626 (EN)
KLÍMA, Jiří, et al. Ekonomika a řízení elektroenergetiky. Jaroslav Jelínek. 2. vyd. Praha : STNL, 1986. 184 s.
KLÍMA, Jiří, JIREŠOVÁ, Alena. Řízení a ekonomika energetických soustav I. 4. vyd. Praha : Ediční středisko ČVUT, Praha 1, Husova 5, 1981. 185 s.
MUNASINGHE, Mohan. The Economics of Power System Reliability and Planning : Theory and Case Study. 1st edition. Washington D.C., USA : [s.n.], 1979. 623 s. ISBN 0-8018-2276-9.
PAVLOVSKÝ, Bohumír. Ekonomika a řízení elektrizačních soustav : I. část - Ekonomika elektrických sítí. 1. vyd. Praha : SNTL - Nakladatelství technické literatury, n. p., 1982. 150 s. číslo publikace 412-33223.
TOMEK, Gustav, VÁVROVÁ, Věra, VAŠÍČEK, Jiří. Marketing v energetice. Sazba Milan Vokál. 1. vyd. Praha : Grada Publishing a.s., 2002. 248 s. ISBN 80-247-0370-X.
VASTL, Jaromír, POVÝŠIL, Roman, NAVRÁTIL, Petr. Řízení výrobních systémů : Sbírka úloh. 2. vyd. Praha : Ediční středisko ČVUT, Praha 6, Zikova 4, 1990. 237 s. ISBN 80-01-00227-6.

Recommended reading

CIPRA, Tomáš. Praktický průvodce finanční a pojistnou matematikou. 1. vyd. Praha : [s.n.], 1995. 84 s. HZ. ISBN 80-901918-0-0.
SMÉKALOVÁ, Darina. Finanční a pojistná matematika : pro střední školy s ekonomickým zaměřením. Sazba: Montanex, a.s., Tisk, Tiskárna Tichý , Ostrava - Vítkovice, Obálka: Miloš Kardoš. 1 : Montanex a.s. Výstavní 10, 730 40 Ostrava, 1995. 167 s. ISBN 80-85780-39-9.

Classification of course in study plans

  • Programme MKC-EEN Master's 2 year of study, summer semester, compulsory

Type of course unit

 

Lecture

39 hod., optionally

Teacher / Lecturer

Ing. Lukáš Radil, Ph.D.

Syllabus

  - Introductory information, course organisation - Liberalization

  - Costs in the electricity sector, power and energy costs

  - Line costs - I.

  - Line costs - II.

  - Transformer costs - I.

  - Transformer costs - II

  - Regulatory asset base

  - Valuation of deviations

  - Compensation costs

  - Energy markets - I.

  - Energy markets - II.

  - Credit test

 

Fundamentals seminar

7 hod., compulsory

Teacher / Lecturer

Ing. Lukáš Radil, Ph.D.

Syllabus

1. Calculations of basic indicators

  2. Calculation of power lines - I.

  3. Calculation of power lines - II.

  4. Calculation of transformers - I.

  5. Calculation of transformers - II.

  6. Economic aspects of energy transport

   7. Calculation of compensation

 

Exercise in computer lab

6 hod., compulsory

Teacher / Lecturer

Ing. Lukáš Radil, Ph.D.

Syllabus

   1. Cross-border JAO transactions

  2. Long exchange trades

  3. Trades on the short exchange

  4. Composition of electricity prices from different sources - simulation - I.

  5. Composition of electricity prices from different sources - simulation - II.

  6. Determination of the WACC