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Course syllabus - Electricity market design and analysis for a sustainable transition

Scope

3.0 credits

Course code

NAA307

Valid from

Autumn semester 2026

Education level

Second cycle

Progressive Specialisation

A1N (Second cycle, has only first-cycle course/s as entry requirements)

Main area(s)

Economics

Organisation

Department of Business and Mathematics

Ratified

2025-12-18

Literature lists

Course literature is preliminary up to 8 weeks before course start. Course literature can be valid over several semesters.

Objectives

The purpose of this course is to increase the understanding of the electricity market and its role in achieving efficient electricity supply. The course emphasizes economic incentives in shaping market outcomes, and the scope of electricity market design and regulation for a sustainable energy transition.

Learning outcomes

  1. Describe the interaction between the electricity system and the electricity market.
  2. Explain how the electricity market can increase the efficiency of electricity supply, e.g. with respect to market integration.
  3. Show how market power reduces the efficiency of the electricity market.
  4. Explain economic and political challenges associated with the green transition.
  5. Apply economic tools to analyze the electricity market; examine how changes to the electricity system and regulation affect market outcomes.

Course content

  1. Introduction to the electricity market. Interaction between the electricity system and market.
  2. The spot market for electricity. Price-formation on the power exchange. The marginal pricing controversy. Why are electricity prices so volatile? The purpose of bidding zones. International trade in electricity.
  3. Electricity markets in the long and short run. The missing money problem. Financial markets for diversifying risk.
  4. Incentives in the electricity market, market power. Economic regulation of electricity networks.
  5. Pollution and other externalities. The green transition, carbon leakage, energy nationalism, rebirth of the centrally planned economy.

Specific requirements

At least 75 credits in engineering or natural sciences; or at least 60 credits in economics; or at least 60 credits in a technology related subject combined with a minimum of 2 years of full-time professional experience from a relevant area within industry. In addition English course 6 or English level 2 is required.

Examination

INL1, Written assignment, 3 credits, grade: Pass (G), Fail (U). Learning outcome: 1-5.

A student who has a certificate from MDU regarding disability study support, can request adaptions for the examination. It is the examiner who takes decisions on any adaptions, based on the certificate and other conditions.

Grade

Two-grade scale