Coal Power Generation Economics

12TH OCTOBER 2017, KUALA LUMPUR, MALAYSIA

About The Course

The course will discuss the coal value chain from exploration and production through to coal-fired generation from both a global and regional perspective. Case studies and exercises will be used to augment the course materials. Course material will include:

 

Overview of Electricity industry economics

  • Electricity supply and demand
  • Electricity industry structures and regulation – Regional perspectives
  • The rate of return regulation – basic mechanics and challenges
  • Overview of Distribution and transmission economics
  • Locational marginal pricing

 

Relevant economic and accounting metrics

  • Depreciation accounting
  • book vs Mark to Market accounting
  • P&L and cash flow statements

 

Coal power generation – critical considerations

  • Pricing coal (production, transport, storage)
  • Economics of coal-fired generation (Levelised Cost of Electricity, Internal Rate of Return)
  • Generation competition (spark vs. dark spreads)
  • Impact of environmental constraints

 

Learning Outcomes

Upon completing this course, attendees will

  • Have an updated understanding of the regional dynamics of electricity generation
  • Gain a working knowledge of the key metrics used to assess profitability
  • Gain familiarity with the key variables at play in assessing the viability of investments in coal power generation asset
  • Be able to consider blending options to optimise dark power spread
  • Consider inventory hedging and forward price curve optimisation
  • Estimate and manage CO2 Carbon impact and hedge requirement

Who Should Attend

  • New participants seeking to understand coal pricing and economics
  • Non-coal commodity traders seeking knowledge of the coal market
  • Managers with responsibility for trading and risk management
  • Energy buyers

Course Faculty - Jeremy Wilcox

Jeremy Wilcox is an energy market professional with 30 years’ experience working in the oil, gas, coal, electricity, renewable energy and emissions sectors.

 

With an honours degree in Applied Chemistry, where he specialized in fuel technology, and a postgrad in Marketing and Business, Jeremy has been able to combine his knowledge of energy technology with the application of business processes to improve corporate efficiency and profitability.

 

After a successful career in the downstream oil industry as a strategic and economic analyst Jeremy developed media products to assist with the understanding and development of the emergent energy derivatives market in the 1990s, including the development and launch (as editor) of Energy Risk. Later, he joined a start-up energy brokerage desk in London, where he brokered IPE Brent futures and options, as well as assisting in the development of an OTC electricity brokerage service.

 

Since 2008 Jeremy has been based full-time in Bangkok where he has focused on developing Asia’s energy and environment markets. A recurring area of work has been the development of the energy buyer market, which has included procuring electricity, gas and coal supplies for clients, assisting with power purchase agreements and developing forward strategies and risk scenarios.

 

In addition to advisory work Jeremy is a frequent speaker and chairman at conferences, is a recognized market commentator and he also teaches introductory and advanced courses on coal, gas and emission markets across Asia.

TOPICS COVERED

Overview of Electricity industry economics

Electricity supply and demand

Relevant  economic and accounting metrics

Book vs Mark to Market accounting

Coal power generation – critical considerations

Overview  of Distribution and transmission economics

This training course has a limited attendance for up to 20 participants only. Sessions commence at 9am on all days, with short intervals at 10.30am and 3.30pm respectively. Refreshments will be provided in the short intervals. Lunch will be provided at 12:30pm for 1 hour. Sessions will end at 5pm on all days.

Unique Features with powerEDGE Training

• Pre-Course Questionnaire to help us focus on your learning objectives
• Detailed Course & Reference Manual for Continuous Learning and Sharing
• Practical Exercises & Case Examples to better understand the principles
• Limited class size to ensure One-to-One Interactivity
• Assessment at the end of the course to help you develop a Personal Action Plan