This course will equip students with the tools necessary for economic analysis and quantification of impacts of energy systems. We will review the availability of energy resources and study methods for quantification of resource depletion and scarcity. The course will cover basic concepts in economics and their application to energy systems. Tools and techniques for project economics for an individual/ company perspective and macro-decision making for society will be introduced. We will discuss basic concepts of welfare economics and environmental economics that are necessary for energy systems analysis and their environmental impacts..
INTENDED AUDIENCE :Masters students of Energy Systems Engineering. UG students of Mech, Elec, Chemical interested in EnergyPRE- REQUISITES : NilSUPPORT INDUSTRY :Nil
Week 1: Energy Flow Diagram ,Global Trends in Energy Use, India and World- Disaggregation by supply, end use, Energy and Environment, The Kaya Identity, Emission FactorWeek 2: Energy and Quality of Life, Energy Inequality, Energy Security, Introduction to Country Energy Balance assignmentWeek 3: Energy Economics - Simple Payback Period, Time Value of Money- discount rate, Criteria for Assessing Energy Projects –(Net Present Value (NPV), Benefit/Cost Ratio (B/C), Inflation, Internal Rate of Return (IRR)Week 4: Resources & Reserves Growth Rates in Consumption, Estimates of Duration of Fossil Fuels, McKelvey Diagram, Peak oil, Hubbert’s modelWeek 5: Materials used in renewable energy (Kuznet’s Curve, Betting on the planet, Simon’s Change), Non Renewable Energy Economics (Hotelling’s Rule)Week 6: Preferences and Utility, Utility and Social Choice Week 7: Public and private goods / bads, Demand curves , ExternalitiesWeek 8: Financing Energy – Debt/ Equity- Sources of funds, innovative financing modelsWeek 9: Input Output AnalysisWeek 10:Primary Energy Analysis, Net Energy Analysis, Examples, Energy Cost of Energy, Life Cycle Analysis of BioenergyWeek 11: Net Energy Examples, Energy PolicyWeek 12:Energy Policy Examples, Practice problems solution
In addition to the lectures there will be few Live Interactive Sessions.
TEACHING ASSISTANT Matrika Ghimiray Matrika is a PhD Scholar in the Interdisciplinary Program of Climate Studies at IIT Bombay. She has her Master's Degree in Energy Technology. Her academic interests lie in Policy, Climate Change and Sustainable Development. Apart from academics, she enjoys music, reading books, travelling and exploring various cuisines. Pratik Joshi Pratik is a PhD Scholar in Centre for Policy Studies (CPS) at IIT Bombay. He has done Master's in Electric Power Systems. Prior to joining CPS, he has worked at National Centre for Photovoltaic, Research and Education (NCPRE), IIT Bombay and was part of Biannual All India Solar PV Module Reliability Survey-2018. His area of research is Energy Policy with a specific interest in Solar Photovoltaics. At present, he is working on ’deployment of rooftop PV systems in India’ using public policy perspective. Kumaresh Ramesh Kumaresh Ramesh is a final-year undergraduate studying Energy Science and Engineering at IIT Bombay. Currently, he is working on his Master’s thesis on electrification of bus rapid transit systems. Previously, he has interned at the Council on Energy, Environment and Water, one of India’s leading energy policy think-tanks, where he worked on the cost-benefit assessment of rooftop solar. He has also spent a semester abroad at Universidad Carloss III de Madrid, where he also took the opportunity to backpack across Europe. Other than energy economics and policy, he is interested in clean transportation, urbanism, and diversity and inclusion.