IELE-4108 Energy Policy and Markets

Present, analyze and propose the concepts and methods needed to setup an economic, social and environmentally sustainable energy policy. Assimilate the main aspects of the problems associated with management in the energy context, within the new market context and in accordance with the new game rules and the sector organization. The discussion will be organized in three major topics: i- Sustainability concept and concepts related to energy systems and the energy chain. The aspects related to the assignment and utilization of energy resources in production, transformation, distribution and power consumption activities are identified. Natural resource and environmental economy (based on the economic functions of the environment) and energy balance concepts (sources, final and useful energy and losses are reviewed. A panorama of the international and Colombian energy systems is made and the international agreements regarding economic and environmental matters are examined, as well as their incidence and opportunities on the energy sector. Ii- The methodologies and tools designed to support the preparation of a sustainable energy policy are assessed, taking into consideration the technology, economic, social and environmental aspects, and taking into account the multiplicity of agents and interests involved in decision-making, the asymmetries of information and the existing limits to define such policy. The top-down and bottom-up support models for analysis will be reviewed – and the scenario technique. Iii- The restructuring processes carried out in the energy sector are discussed – changes in copyrights, activity disaggregation (des-regulation and new organization). The theories of regulation on the different State intervention means and the microeconomy fundamentals of market operation and monopoly activities are reviewed. Special emphasis is given to the rules to ensure freedom of access and to avoid restrictive practices of the competition and unfair competition, as well as the application of price regulation.