Major energy markets and characteristics: oil, gas, electricity. The carbon market: Kyoto protocol, European Union Emissions trading scheme, clean development mechanism, joint implementation, cap-and- trade, carbon trading units, emissions trading. Spot, forward and future markets: Spot, forward and future characteristics, arbitrage valuation of forwards and future, analysis of forward curves and energy prices. Price processes in the energy market: stochastic processes, random behavior of energy prices. Trading energy, risk management in the energy market. Non-renewable and renewable energy. The effects of higher energy prices. Dependence on imported oil. Energy conversion and the environment: externalities; benefit- cost analysis; environmental standards; environmental costs. Economic and cost analysis, energy
investment decision making. Allocation of limited resources. Economics of exploration, distribution and utilization: economic evaluation of resource exploration, fuel transportation and distribution. Economic evaluation of renewable energy systems. Economics of exploration, distribution and utilization . Economic evaluation of energy projects. Power plant: Load duration curve. Load factor, demand factor, capacity factor and Diversity factor. Effect and Methods of meeting fluctuating load. Base load plant and Peak load plant. Selection of generating equipment. Cost of electrical energy. Tariff methods. Performance and operating characteristics of power plant.