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IB839 - Financing of Energy Assets

  • Module code: IB839
  • Module name: Financing of Energy Assets
  • Department: Warwick Business School
  • Credit: 10

Content and teaching | Assessment | Availability

Module content and teaching

Principal aims

"The global energy industry is highly capital intensive. Decisions about capital investment need to consider future developments over decades and are characterised by great uncertainty. Capital budgeting tools seek to improve investment decision making. Beyond conventional payback and DCF methods, variants of real options will be explored.The module considers capital budgeting and financing together, as in the energy industry they are closely linked, reflecting the scale of energy installations and the time it takes from planning new installations to commissioning them. Project management practices are discussed in relation to the organisational process of capital budgeting as an important input for developing the activity plans underlying budgets. The ability of societies to articulate political programmes for the energy sector and connect them with appropriate technologies requires that industries can organise their efforts through mediating instruments, such as technology roadmaps, which can in turn be connected with capital budgeting and capital financing projects in individual firms or consortia.The module will examine three empirical domains of large scale capital investment: oil and gas field exploration, nuclear power plants, and renewable energy. In exploring those domains, parallels and contrasts will be drawn out with respect to technical and political risk and uncertainty, and patterns of capital outlays and payoffs.This module contributes to the course objectives by educating managers from all functions about a key process through which the industry plans its future. The module emphasises that investment in the energy industry cannot be managed with standard capital budgeting techniques on their own but needs to be seen in the context of specific finance solutions, project management practices, and national and international policies and inter-firm trends. "

Principal learning outcomes

SUBJECT KNOWLEDGE AND UNDERSTANDING: relate the economics of capital budgeting to its organisational and social dimensions; identify key principles of finance for large investments in the energy sector; analyse investment contexts to identify key challenges to effective project management; understand the theory of mediating instruments in an investment context. KEY SKILLS: develop and demonstrate written communication skills. COGNITIVE SKILLS: develop and demonstrate analytical, and problem solving skills. SUBJECT-SPECIFIC/PROFESSIONAL SKILLS: suggest how mediating instruments may be used to communicate key characteristics of large scale energy investments; compare the usefulness of financial information for different investment contexts.

Timetabled teaching activities

"Total contact hours: 15 hrs Lectures during residential week: Two per day over 2.5days, i.e. 5 @ 2hr each = 10hr; Seminars by invited speakers during residential week, or webcasts: One @ 1hr each = 1hr; Group work sessions during residential session: One per day @ 2hr each = 4hr Module duration (weeks, if applicable): Overall module duration is 12 weeks; Other (please describe):e.g. distance-learning, intensive weekend teaching: The blended learning approach supports learning throughout the module duration through: A comprehensive course handbook for effective self study; Use of my.wbsLive to provide online seminars & webcasts; Group work supported by my.wbs; A moderated, individual online learning log that allows in a reflective manner; Individual assignments where people apply the principles of the module to a situation in their own company, or one of their choosing."

Departmental link

https://my.wbs.ac.uk

Module assessment

Assessment group Assessment name Percentage
10 CATS (Module code: IB839-10)
A (Assessed work only) Assessed Course Work 100%

Module availability

This module is available on the following courses:

Core

N/A

Optional Core

N/A

Optional
  • Postgraduate Taught Business Administration (N1P2) - Year 10
  • Postgraduate Taught Business Administration (N1P2) - Year 2
  • Postgraduate Taught Business Administration (N1P2) - Year 3
  • Postgraduate Taught Business Administration (N1P2) - Year 4
  • Postgraduate Taught Business Administration (N1P2) - Year 5
  • Postgraduate Taught Business Administration (N1P2) - Year 6
  • Postgraduate Taught Business Administration (N1P2) - Year 7
  • Postgraduate Taught Business Administration (N1P2) - Year 8
  • Postgraduate Taught Business Administration (N1P2) - Year 9
  • Postgraduate Taught Business Administration (for the Global Energy Industry) (N1PN) - Year 10
  • Postgraduate Taught Business Administration (for the Global Energy Industry) (N1PN) - Year 2
  • Postgraduate Taught Business Administration (for the Global Energy Industry) (N1PN) - Year 3
  • Postgraduate Taught Business Administration (for the Global Energy Industry) (N1PN) - Year 4
  • Postgraduate Taught Business Administration (for the Global Energy Industry) (N1PN) - Year 5
  • Postgraduate Taught Business Administration (for the Global Energy Industry) (N1PN) - Year 6
  • Postgraduate Taught Business Administration (for the Global Energy Industry) (N1PN) - Year 7
  • Postgraduate Taught Business Administration (for the Global Energy Industry) (N1PN) - Year 8
  • Postgraduate Taught Business Administration (for the Global Energy Industry) (N1PN) - Year 9