Economy and Ecology of Power Engineering
FEKT-KEEEAcad. year: 2015/2016
The goal of the course is to introduce issues concerning the basics of financial mathematics and ecology in power engineering to students. Knowledge of financial mathematics, costs, depreciation and investment efficiency evaluation form the necessary basis for understanding the links between the economy and power engineering. Similarly, knowledge of the environmental theories, on the effects of noise and ionizing radiation and air pollution form the necessary basis for understanding the relationship between power engineering and ecology.
Due to the innovation of curriculum, this subject was formed from previously separate - seemingly unrelated - subjects. For these historical reasons, the subject is partially taught as two separate issues, but there are efforts applied to interconnect individual chapters of both subjects.
In this course, the focus is on mastering the basics of financial mathematics that are fundamental for all other economic-energy calculations. Knowledge of issues such as interest rates, discounting and time value of money is crucial for understanding as well as successful completion of economic subjects in the master studies. Similarly, it is important to learn the basic rules and principles of ecological thinking and connections between ecology and power engineering.
In this course, emphasis is placed on both the numerical exercises in which students learn various methods of financial techno-environmental calculations, and the exercises and computer laboratories where the series of practical exercises and case studies, contributing to a better understanding of the topic, are solved.
Learning outcomes of the course unit
The study’s outcome is not to create an independent economist and environmental expert or activist. After completing the course, student probably will not be able to do double-entry accounting, fill out a tax form, or propose desulphurization equipment, but should be able to answer the following questions:
- What is the interest, discount, supplier?
- What is the present value of money?
- What are the methods of evaluating the effectiveness of investments?
- What are depreciations and what is the amortization principle?
- What is the cash flow and what is the cash flow within the company?
- What kinds of costs are known and what are the specifics of power engineering costs?
- What are the basic components of a solid fuel?
- What pollutants come from burning coal?
- What are the causes of noise in power stations and what are the limits of noise?
- How do we define emissions, air pollution and what are their units?
Knowledge is required at the level of secondary education and a basic knowledge of mathematical analysis. A good knowledge of BVEE subject is also required.
Recommended optional programme components
Recommended or required reading
STOFT, Stewen. Power System Economics : Designing Markets for Electricity. Stamatios V. Kartalopoulos. 1st edition. New Jersey, USA : IEEE Press, 2002. 468 s. ISBN 0-471-15040-1.
VASTL, Jaromír, POVÝŠIL, Roman, NAVRÁTIL, Petr. Řízení výrobních systémů : Sbírka úloh. 2. vyd. Praha : Ediční středisko ČVUT, Praha 6, Zikov 4, 1990. 237 s. ISBN 80-01-00227-6.
KLÍMA, Jiří, JIREŠOVÁ, Alena. Řízení a ekonomika energetických soustav I. 4. vyd. Praha : Ediční středisko ČVUT, Praha 1, Husova 5, 1981. 185 s.
PAVLOVSKÝ, Bohumír. Ekonomika a řízení elektrizačních soustav : I. část - Ekonomika elektrických sítí. 1. vyd. Praha : SNTL - Nakladatelství technické literatury, n. p., 1982. 150 s. číslo publikace 412-33223.
MUNASINGHE, Mohan. The Economics of Power System Reliability and Planning : Theory and Case Study. 1st edition. Washington D.C., USA : [s.n.], 1979. 623 s. ISBN 0-8018-2276-9.
TOMEK, Gustav, VÁVROVÁ, Věra, VAŠÍČEK, Jiří. Marketing v energetice. Sazba Milan Vokál. 1. vyd. Praha : Grada Publishing a.s., 2002. 248 s. ISBN 80-247-0370-X.
KLÍMA, Jiří, et al. Ekonomika a řízení elektroenergetiky. Jaroslav Jelínek. 2. vyd. Praha : STNL, 1986. 184 s.
CIPRA, Tomáš. Praktický průvodce finanční a pojistnou matematikou. 1. vyd. Praha : [s.n.], 1995. 84 s. HZ. ISBN 80-901918-0-0.
SMÉKALOVÁ, Darina. Finanční a pojistná matematika : pro střední školy s ekonomickým zaměřením. Sazba: Montanex, a.s., Tisk, Tiskárna Tichý , Ostrava - Vítkovice, Obálka: Miloš Kardoš. 1 : Montanex a.s. Výstavní 10, 730 40 Ostrava, 1995. 167 s. ISBN 80-85780-39-9.
MATOUŠEK, A. Ekologie v elektroenergetice. Brno: Ing.Zdeněk Novotný CSc., 2004. s. 1-94. ISBN: 80-214-2538-5.
Říha,J.:Úvod do teorie životního prostředí,SNTL Praha
Quarq,M.:Ochrana životního prostředí,SNTL Praha
Planned learning activities and teaching methods
Teaching methodology is determined by different teaching techniques as they are described in Article 7 of the Study and Examination Regulations of the University.
Lectures are organized in the form of interpretation and discussion of the issue according to the syllabus.
Seminars and laboratory exercises are used for practical exercises particularly in mathematical skills and topics taught at lectures. The topics are further discussed and debated during seminar classes.
Assesment methods and criteria linked to learning outcomes
Marking in the subject consists of four components:
- Evaluation of exercises in the form of a credit test.
- Assessment of laboratory exercises where the student complies with assigned tasks.
- Evaluation of the final exam test, which consists of economic and environmental parts.
- Evaluation of student activities. These points are extra credit for voluntary, independent and active solving of tasks and examples, etc. The bonus points are given by the subject teacher and are entirely based on his/her subjective assessment and are his/her responsibility.
The points’ ratio from individual parts of course and the conditions for obtaining credits are specified by the teacher at the beginning of the semester.
Language of instruction
Syllabus of lectures:
1. Introduction and course organization
2. Fundamentals of economics, basic terms and definitions
3. Basics of Financial Mathematics
4. Structure of costs and profits, expense and revenue flows, depreciation
5. Basic financial reports, profit and loss records and calculations
6. Investment decision-making, evaluation of investment efficiency
7. Emission allowances - principle and trade, ecological footprint - natural capital
8. Basic environmental theory
9. The influence of power generation on the environment
10. Measures taken against air pollution
11. Effect of noise and electrical fields on the environment
12. Effects of ionizing radiation
13. Waste from thermal and nuclear power plants and heating plants
Training in profesional basics:
1. Financial Mathematics
3. Financial reports, profit and loss reports, balance sheet, calculations
4. Evaluation of the effectiveness of investments
5. Air Pollution
6. Noise and vibration
7. Non-ionizing and ionizing radiation, magnetic and electric field
8. Water and soil pollution
9. Credit test
Syllabus of computer exercises:
10. The use of software tools to solve problems of financial mathematics
11. Evaluation of the effectiveness of investment and financial analysis of the project
Syllabus of laboratory exercises:
12. Control of indoor air quality and working conditions, noise measurement and electromagnetic field measurement of asynchronous motors and transformers.
13. Vibration measurements on synchronous generators, transformers and other prepared laboratory tasks.
The aim of the course is to familiarize students with the basics of financial mathematics, which is important for a good understanding of the related issues concerning costs in power engineering and the evaluation of investment effectiveness of energy projects. Successful completion of basic economic models and principles requires also a basic knowledge of financial reports and statements. Furthermore, the goal of this course is to introduce students to the theory of the environment and issues related to the impact of power devices on the environment as well as environmental influences on power facilities, such as emissions, noise, ionizing radiation, etc. The aim is also to demonstrate to students the interdependence of the economy, ecology and power engineering.
Specification of controlled education, way of implementation and compensation for absences
Lectures on the subject are optional but students’ attendance is recommended. The lectures are intended to provide a complete understanding of the topic and a number of key conflict issues and problems are covered.
Computer exercises and training in profesional basics are optional. Drawing up an individual task or project is mandatory.
Laboratory exercises and completion of all laboratory tasks are mandatory.
Type of course unit
8 hours, optionally
Teacher / Lecturer
Exercise in computer lab
6 hours, compulsory
Teacher / Lecturer
12 hours, compulsory
Teacher / Lecturer