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.
