Energy Economics and Project Development

CEP 350 provides an in-depth look at the economic factors crucial for successful energy project development. Students will delve into the Levelized Cost of Energy (LCOE), a fundamental metric for comparing different generation technologies, and understand its components and methodologies. The course covers the intricacies of grid interconnection, including the processes, challenges, and policy implications associated with connecting new generation to existing transmission infrastructure. A significant portion of the curriculum is dedicated to analyzing various incentives, subsidies, and regulatory frameworks that support or hinder energy projects. Furthermore, students will gain foundational knowledge in project finance, exploring different funding models, risk assessment, and financial structuring tailored for capital-intensive energy ventures, preparing them for roles in project analysis and development within the energy sector.

Course outline

Lectures, virtual labs, and graded assignments — completed in your browser.

01Lesson 1: Introduction to Energy Economics and Project Lifecyclelecture

02Lesson 2: Fundamentals of Capital Costs and Operating Expenseslecture

03Lesson 3: Levelized Cost of Energy (LCOE) - Methodology and Applicationslecture

04Hands-on Lab: LCOE Calculation and Sensitivity Analysislab

05Lesson 5: Understanding Energy Market Structures and Pricinglecture

06Lesson 6: Introduction to Grid Infrastructure and Interconnectionlecture

07Lesson 7: Navigating Interconnection Queues and Regulatory Processeslecture

08Hands-on Lab: Interconnection Application Analysis and Queue Prioritizationlab

09Lesson 9: Energy Project Incentives, Subsidies, and Tax Creditslecture

10Lesson 10: Power Purchase Agreements (PPAs) and Offtake Strategieslecture

11Hands-on Lab: Project Financial Modeling with Incentiveslab

12Lesson 12: Introduction to Project Finance Structures and Debt/Equitylecture

13Lesson 13: Risk Assessment and Mitigation in Energy Projectslecture

14Capstone Service Project: Energy Project Feasibility Study and Financing Proposalassignment

Syllabus

["Week 1: Lesson 1: Introduction to Energy Economics and Project Lifecycle","Week 2: Lesson 2: Fundamentals of Capital Costs and Operating Expenses","Week 3: Lesson 3: Levelized Cost of Energy (LCOE) - Methodology and Applications","Week 4: Hands-on Lab: LCOE Calculation and Sensitivity Analysis","Week 5: Lesson 5: Understanding Energy Market Structures and Pricing","Week 6: Lesson 6: Introduction to Grid Infrastructure and Interconnection","Week 7: Lesson 7: Navigating Interconnection Queues and Regulatory Processes","Week 8: Hands-on Lab: Interconnection Application Analysis and Queue Prioritization","Week 9: Lesson 9: Energy Project Incentives, Subsidies, and Tax Credits","Week 10: Lesson 10: Power Purchase Agreements (PPAs) and Offtake Strategies","Week 11: Hands-on Lab: Project Financial Modeling with Incentives","Week 12: Lesson 12: Introduction to Project Finance Structures and Debt/Equity","Week 13: Lesson 13: Risk Assessment and Mitigation in Energy Projects","Week 14: Capstone Service Project: Energy Project Feasibility Study and Financing Proposal"]