Module Handbook

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Module WIW-RE-ERT-M-7

Economics and Financing of Renewable Energy (M, 4.5 LP)

Module Identification

Module Number Module Name CP (Effort)
WIW-RE-ERT-M-7 Economics and Financing of Renewable Energy 4.5 CP (135 h)

Basedata

CP, Effort 4.5 CP = 135 h
Position of the semester 1 Sem. in SuSe
Level [7] Master (Advanced)
Language [EN] English
Module Manager
Lecturers
Area of study [WIW-RE] Resource and Energy Economics
Reference course of study [WIW-88.21-SG] M.Sc. Business Studies
Livecycle-State [NORM] Active

Courses

Type/SWS Course Number Title Choice in
Module-Part
Presence-Time /
Self-Study
SL SL is
required for exa.
PL CP Sem.
2V WIW-RE-FRT-K-7
Financing of Renewable Energy Technologies
WP 30 h 15 h - - PL1 2.0 SuSe
2V WIW-RE-ERT-K-7
Economics of Renewable Energy Technologies
WP 30 h 15 h - - PL1 2.0 SuSe
2V WIW-SUE-RET-K-7
Introduction to Renewable Energy Technologies
WP 30 h 15 h - - PL1 2.0 SuSe
  • About [WIW-RE-FRT-K-7]: Title: "Financing of Renewable Energy Technologies"; Presence-Time: 30 h; Self-Study: 15 h
  • About [WIW-RE-ERT-K-7]: Title: "Economics of Renewable Energy Technologies"; Presence-Time: 30 h; Self-Study: 15 h
  • About [WIW-SUE-RET-K-7]: Title: "Introduction to Renewable Energy Technologies"; Presence-Time: 30 h; Self-Study: 15 h

Examination achievement PL1

  • Form of examination: written exam (Klausur) (180 Min.)
  • Examination Frequency: each semester

Evaluation of grades

All partial module examinations have to be passed. The module grade is the arithmetic mean of all partial examination grades.

Written exams in two of three courses

Contents

  • Brief overview of renewable energy technologies
  • Costs of renewable energy technologies and investment requirements
  • Need for financing of renewable energy technologies and basic issues in financing
  • Debt and Equity modes of financing
  • Incentives (Feed-in-Tariffs, Renewable Quota Obligations, Investment and Production Tax Credits, Subsidies, Carbon Credits etc.) and their impacts on modalities and cost of financing renewable energy technologies
  • Assessment and allocation of Risk in financing renewable energy technologies
  • Financing issues for Lenders, Equity Investors, Project Developers and Policy Makers
  • Public finance mechanisms to mobilize investments in renewable energy technologies
  • Effect of modalities of financing on the financial viability of renewable energy projects
  • Evaluating financing instruments
  • New financial models for renewable energy investment including Energy Service Companies, Micro-Credit Schemes etc.
  • Case studies on financing renewable energy projects
  • Brief overview of important characteristics of renewable energy technologies and their implications for financial/economic viability
  • Feasibility requirements for large scale dissemination of renewable energy technologies - resource availability, technological appropriateness, energetic feasibility, socio-cultural acceptability, environmental sustainability, institutional preparedness and financial viability
  • Economic considerations in designing renewable energy technologies
  • Identification and quantification of the ‘Costs’ and ‘Benefits’ of renewable energy projects
  • Time value of money, discount rate and corresponding formulae
  • Measures of financial/economic performance
  • Approaches for considering uncertainty in appraisal/evaluation of renewable energy projects
  • Development of techno-economic models for financial evaluation of renewable energy technologies
  • Learning effect, experience curves, technology diffusion models and estimation of future cost of renewable energy technologies
  • Incentives (Feed-in-Tariffs, Renewable Purchase Obligation, Tax credits, Carbon dioxide emissions mitigation benefits etc.) and financial viability of renewable energy technologies
  • Economics of decentralized power generation based on renewable energy sources
  • Effect of modalities of financing on the financial viability of renewable energy projects
  • Software for techno-economic evaluation of renewable energy based power generation(such as RETScreen, HOMER, System Advisor Model)
  • Tariff fixation of renewable energy based electricity
  • Issues in social cost-benefit analysis of renewable energy projects
  • Case studies
  • Global energy scenario and issues with fossil fuel utilization
  • Different renewable sources of energy, their origin and basic characteristics
  • Renewable energy resource assessment (solar, biomass, wind and hydro)
  • Solar collectors- flat plate, evacuated tubular and concentrating type
  • Thermal applications of solar energy
  • Solar cells and their applications
  • Thermo-chemical and bio-chemical conversion of biomass, bio-diesel
  • Wind energy conversion systems
  • Mini and micro-hydro systems
  • Geothermal energy utilization
  • Ocean thermal energy conversion
  • Energy from tides and waves
  • Integrated energy systems
  • Renewable energy utilization in rural areas

Competencies / intended learning achievements

On successful completion of the course the students shall be able to:

VL Financing of Renewable Energy Technologies

  • Understand project financing terminology and the underlying theory as well as the importance of various financial and contract provisions
  • Evaluate and discuss various potential financing mechanisms for renewable energy technologies.
  • Analyze and explain the effect of different modalities of financing on the unit cost of electricity delivered and also on the financial attractiveness of investments in renewable energy projects.
  • Quantify the extent of financing possible due to carbon mitigation benefits of renewable energy technologies

VL Economics of Renewable Energy Technologies

  • Understand the relevance of financial feasibility evaluation of renewable energy technologies along with other feasibility requirements for their large scale dissemination.
  • Understand, describe and apply time value of money considerations in feasibility evaluation of renewable energy projects.
  • Analyze, evaluate and discuss financial feasibility of renewable energy projects.
  • Analyze and explain the effect of different modalities of financing on the unit cost of electricity delivered and also on the financial attractiveness of investments in renewable energy projects.

VL Introduction to Renewable Energy Technologies

  • Understand the relevance of harnessing renewable sources of energy technologies.
  • Understand, describe and apply renewable energy resource assessment techniques.
  • Describe designs and basic principles of operation of different renewable energy technologies
  • Discuss relative merits and limitations of different renewable energy technologies.

Literature

  • Chan S. Park “Contemporary Engineering Economics”, Fifth Edition, Pearson Prentice Hall (2011)
  • Gerald J. Thuesen and W. J. Fabrycky, Engineering Economy, Prentice Hall Inc. (2001)
  • Harry Campbell and Richard Broron, Benefit – Cost Analysis, Cambridge University Press (2003)
  • or any other standard text book on engineering economics
  • T. C. Kandpal and H. P. Garg, “Financial Evaluation of Renewable Energy Technologies” Macmillan India Ltd. (2003) (soft scanned version of relevant portions can be made available to the students)
  • Relevant literature from Research Journals, Reports etc (soft version shall be made available to the students)
  • John Twidell and Tony Weir, Renewable Energy Resources, Taylor and Francis (2006).
  • Godfrey Boyle, Renewable Energy: Power for a Sustainable Future, Oxford University Press (2004)
  • Chan S. Park “Contemporary Engineering Economics”, Fifth Edition, Pearson Prentice Hall (2011)
  • Gerald J. Thuesen and W. J. Fabrycky, Engineering Economy, Prentice Hall Inc. (2001)
  • Harry Campbell and Richard Broron, Benefit – Cost Analysis, Cambridge University Press (2003)
  • or any other standard text book on engineering economics
  • T. C. Kandpal and H. P. Garg, “Financial Evaluation of Renewable Energy Technologies” Macmillan India Ltd. (2003) (soft scanned version of relevant portions can be made available to the students)
  • Relevant literature from Research Journals, Reports etc (soft version shall be made available to the students)
  • John Twidell and Tony Weir, Renewable Energy Resources, Taylor and Francis (2006).
  • Godfrey Boyle, Renewable Energy: Power for a Sustainable Future, Oxford University Press (2004)
  • Chan S. Park “Contemporary Engineering Economics”, Fifth Edition, Pearson Prentice Hall (2011)
  • Gerald J. Thuesen and W. J. Fabrycky, Engineering Economy, Prentice Hall Inc. (2001)
  • Harry Campbell and Richard Broron, Benefit – Cost Analysis, Cambridge University Press (2003)
  • or any other standard text book on engineering economics
  • T. C. Kandpal and H. P. Garg, “Financial Evaluation of Renewable Energy Technologies” Macmillan India Ltd. (2003) (soft scanned version of relevant portions can be made available to the students)
  • Relevant literature from Research Journals, Reports etc (soft version shall be made available to the students)
  • John Twidell and Tony Weir, Renewable Energy Resources, Taylor and Francis (2006).
  • Godfrey Boyle, Renewable Energy: Power for a Sustainable Future, Oxford University Press (2004)

Requirements for attendance (informal)

None

Requirements for attendance (formal)

None

References to Module / Module Number [WIW-RE-ERT-M-7]

Course of Study Section Choice/Obligation
[SO-88A.646-SG] M.A. Integrative Social Science Schwerpunkt Wirtschaft, Organisation, Gesellschaft [WP] Compulsory Elective
[SO-88A.646-SG] M.A. Integrative Social Science Schwerpunkt Soziologie [WP] Compulsory Elective
[SO-88A.646-SG] M.A. Integrative Social Science M.A. Integrative Sozialwissenschaft (alt) [WP] Compulsory Elective
[SO-88A.646-SG] M.A. Integrative Social Science M.A. Integrative Sozialwissenschaft (alt) [WP] Compulsory Elective
[SO-88A.646-SG] M.A. Integrative Social Science Schwerpunkt Politik, Wirtschaft, Ethik [WP] Compulsory Elective
[SO-88A.646-SG] M.A. Integrative Social Science M.A. Integrative Sozialwissenschaft (ab WS 20/21) [WP] Compulsory Elective
[SO-88A.646-SG] M.A. Integrative Social Science M.A. Integrative Sozialwissenschaft (ab WS 20/21) [WP] Compulsory Elective
Module-Pool Name
[WIW-EIE-MPOOL-7] Field of Specialization: Environmental and Industrial Economics
[WIW-RE-MPOOL-7] Field of Specialization: Environment, Resources, Energy: Economics and Policy