Energy and Finance

Summary

this training course explores the principles and practical use of financial and investment analysis in the energy industry. In addition, it describes the role and application of asset valuation concepts and methods to estimate cost of capital.

Economic regulation is needed in areas where no functional competition is possible. For example, electricity networks constitute a natural monopoly and requires regulation to limit monopoly pricing and to set incentives for efficient performance.

Other activities like generation and supply, which are not natural monopolies, can become de-facto monopolies due to various limitations, and also require regulation. For example, the provision of such services is potentially contestable given the presence of multiple providers in the specific relevant market. However, the competitive provision of such services in response to market demand may be limited due to specific legal requirements, limited market size, limited number of companies or existence of operational constraints.

This training course explores the principles underlying economic regulation including the regulatory fundamentals, price and quality regulation methods, as well as the routines to set revenue and tariff for regulated services. In addition, it describes the role of efficiency analysis and its application in regulation.

Learning Goals

• Understand the principles of financial analysis from the perspective of the investor and the relevant financial performance indicators and from the perspective of the regulator and the regulatory determinants like the regulatory asset base and cost of capital.
• Understand the fundamentals of financial accounting and obtain substantial knowledge on financial and investment analysis.
• Become familiar with the technical details used n the asset valuation, cost of capital and financial modelling.

The conceptual part of the training will be supported by comprehensive practical exercises throughout the course.

Prerequisites

• None

Learning Method

• Insightful presentations
• Review of real world case studies
• Practical execrises

Course Content

This training course covers six focus areas which touch upon topics related to these aspects. The modules build up on each other and guide participants step-by-step through the content:

• Financial accounting
• Financial analysis
• Financial modelling
• Asset valuation
• Investment analysis
• Cost of Capital

Each module is accompanied by examples and practical exercises.

Financial accountingFinancial analysisFinancial modellingAsset valuationInvestment analysisCost of Capital

Location
Remote-Training