Registry
Module Specifications
Current Academic Year 2012 - 2013
Please note that this information is subject to change.
| |||||||||||||||||||||||||||||||||||||||||||||
| Description | |||||||||||||||||||||||||||||||||||||||||||||
|
This module will address low-carbon investment and project appraisal from the perspective of business and finance professionals. The module will present the key investment characteristics of projects within specific sectors. It will examine the changing capital requirements of the low-carbon investment environment and will assess the sources of and structures of finance emerging to meet these requirements. The module will explore the relevant policy framework and institutional supports from a regional and international perspective. The module will introduce students to a range of applied analytical tools and techniques, including spreadsheet modelling, as well as methodological approaches, applicable to valuation of low-carbon investment and project appraisal, and will feature the global renewable energy sector. | |||||||||||||||||||||||||||||||||||||||||||||
| Learning Outcomes | |||||||||||||||||||||||||||||||||||||||||||||
|
1. Critically evaluate methodological approaches for the valuation of low-carbon investment and project appraisal 2. Evaluate low-carbon investment project proposals using a range of spreadsheet modelling tools and metrics developed for the renewable energy sector 3. Critically evaluate methodologies for identifying and estimating risk in low-carbon investment context 4. Discuss the role of global institutions in the provision of investment resources for low-carbon economy. 5. Evaluate the contribution of policy in facilitating the increased provision of investment capital for the low-carbon economy | |||||||||||||||||||||||||||||||||||||||||||||
All module information is indicative and subject to change. For further information,students are advised to refer to the University's Marks and Standards and Programme Specific Regulations at: http://www.dcu.ie/registry/examinations/index.shtml |
|||||||||||||||||||||||||||||||||||||||||||||
| Indicative Content and Learning Activities | |||||||||||||||||||||||||||||||||||||||||||||
|
Overview. • Introduction to low-carbon investment project appraisal for sustainable energy, renewable energy (RE) and energy efficiency (EE)• Capital/investment requirements for supply, transmission , transit, to 2020 and beyond• Investment characteristics of project appraisal in Biomass, Biowaste, Biofuel, On-shore/Off-shore Wind, Geothermal, Solar and Hydro-electric, and Tidal• Public Finance, Public/Private , and Commercial Finance mechanisms• Current and forecast investment volumes, financing structures, financing sources and financing of capacity operators. Institutional Framework and Low-carbon Investment. • Critique policy initiatives and instruments designed to support, and increase access for the renewable energy sector to investment/ capital• Examine range of measures including (but not limited to) - grants, tarriffs, premiums, tax incentives, soft-loans, and other support instruments• Project appraisal and financing renewable energy in Developing and Transitioning economies• Role of Public Finance Institutions - World Bank, EBRD, EIB and UN programmes• Policy instrument design as a mechanism for cost –minimisation• Multi-critieria decision making in renewable energy projects, uses and abuses. Low-carbon Investment Project Appraisal. • Valuation: Marginal and non-Marginal Benefit/Cost analysis, and data.• Real options valuation• Welfare– oriented analysis, stated preference and revealed preference• Risk and low-carbon project appraisal: stability of energy sources, volatility of fuel prices, revenue risk and product price fluctuations• Discount rates for low-carbon investment projects, adjusting for project specific, technological, regulatory and market risk factors• Risk mitigation and the cost of capital for renewable energy sector• Evidence from practice; forecast energy industry discount rates and database evidence• Conventional generation costs versus low-carbon and renewable energy generation.. Modelling Low-Carbon Investment Projects. • Capital budgeting: DCF, NPV, IRR, payback periods, forecasting project cash-flows• Modelling energy costs :LCOE, leveraged LCOE , Generation TOD, FIT/FIP systems and renewable quota obligations (ROCs) and certificates• Equity Risk Premium, required Green Prices, post-tax cost of debt and WACC for investment projects in renewable energy sources• Spreadsheet modelling. Dedicated spreadsheet tools for low-carbon energy investment• [NREL/(CREST) (solar, wind, geothermal): RETScreen ]• Case Studies. | |||||||||||||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||||||||||||
| Indicative Reading List | |||||||||||||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||||||||||||
| Other Resources | |||||||||||||||||||||||||||||||||||||||||||||
| 6968, Journal, 0, Energy Policy, 6969, Journal, 0, Energy Economics, 6970, Journal, 0, Renewable and Sustainable Energy Review, 6971, Journal, 0, The Energy Journal, 6972, Journal, 0, Journal of Sustainability and Finance, | |||||||||||||||||||||||||||||||||||||||||||||
| Array | |||||||||||||||||||||||||||||||||||||||||||||
| Programme or List of Programmes | |||||||||||||||||||||||||||||||||||||||||||||
| MSEF | MSc in Sustainable Energy Finance | ||||||||||||||||||||||||||||||||||||||||||||
| Timetable this semester: Timetable for EF5113 | |||||||||||||||||||||||||||||||||||||||||||||
| Archives: |
| ||||||||||||||||||||||||||||||||||||||||||||
