Certificate in FINANCIAL ENERGY ANALYSIS NORWEGIAN SCHOOL OF ECONOMICS AND BUSINESS ADMINISTRATION
PROGRAMME OVERVIEW Programme overview Date Day Location Subject SEMINAR 1 October 4 th 2007 Thursday Radisson SAS Royal Hotel October 5 th 2007 Friday Radisson SAS Royal Hotel October 6 th 2007 Saturday Radisson SAS Royal Hotel Introduction and Basic Financial Theory Deregulation in Energy Markets Forward Curve Modelling SEMINAR 2 December 6 th 2007 Thursday Radisson SAS Royal Hotel December 7 th 2007 Friday Radisson SAS Royal Hotel December 8 th 2007 Saturday Radisson SAS Royal Hotel Natural Resource Economics Basic Option Price Theory Options on Commodity Forwards (European, American, Asian) SEMINAR 3 January 31 st 2008 Thursday Radisson SAS Royal Hotel February 1 st 2008 Friday Radisson SAS Royal Hotel February 2 nd 2008 Saturday Radisson SAS Royal Hotel Demand Driven Swing Contracts (end users contracts) Price Driven Swing Contracts; (Spark Spread, Dark Spread, Synthetic Power Plants) Empirical Studies of Energy Prices and Emission SEMINAR 4 March 27 th 2008 Thursday Radisson SAS Royal Hotel March 28 th 2008 Friday Radisson SAS Royal Hotel March 29 th 2008 Saturday Radisson SAS Royal Hotel Real Options and Investment Risk Management Basic Theory Different Value at Risk Approaches SEMINAR 5 April 23 rd 2008 Wednesday Bergen April 24 th 2008 Thursday Bergen April 25 th 2008 Friday Bergen April 26 st 2008 Saturday Bergen Production Optimization Models Zonal Pricing in Deregulated Energy Markets Cash Flow at Risk/Profit at Risk Portfolio Management and Hedging of Production EXAM May / june 2008 (date to be announced) and Bergen Exam 6 hrs Page 2
WELCOME TO WELCOME TO Jan I. Haaland Rector, professor Established as a public institution in 1936, the Norwegian School of Economics and Business Administration,, is Norway s leading business school. It is the first choice for Norwegian students and the Norwegian business community. Approximately 2600 students study across a range of Bachelor, Master and Ph.D programmes focusing on economics, management, accounting and business analysis. also has the longest running executive MBA-programme in Norway, with specialisations including strategic leadership, brand management, public management and management control. has a faculty of high standing in the international research community. As a member of CEMS (Community of European Management Schools) and PIM (Partnership in International Management) is part of a global network of institutions that represent the highest degree of excellence in the fields of business administration and management, and demonstrate leadership in their geographic region. EQUIS accreditation (European Quality Improvement System) reinforces a strongly hold belief that excellence in research is a prerequisite for excellence in teaching. The main academic focus of the programme is market-based valuation and risk management. The electricity market is the main thematic focus but the programme will also examine other energy sources such as oil, gas and coal as well as policy issues related to the European energy markets and interaction between these different markets. The Certificate in Financial Energy Analysis was first established as Kraftanalytikerstudiet in 2000. It was offered in Norwegian and catered primarily to a national market. The programme soon started to attract participants also from other Scandinavian countries. In 2006 the programme was therefore revised and expanded to cover a wider selection of energy sources and markets. The new programme is offered in English and has participants from several North European countries. EFMD Page 3
CERTIFICATE IN FINANCIAL ENERGY ANALYSIS The integration of energy markets in Europe is increasing fast, both across geographical regions and across energy sources (oil, gas and electricity). Today s energy markets are to a large degree driven by price, and supply and demand uncertainty leads to uncertain energy prices. This uncertainty can result in significant financial profit or loss for individual players in the market. Programme directors Petter Bjerksund Professor Gunnar Stensland Professor The Norwegian School of Economics and Business Administration () has offered Kraftanalytikerstudiet, a programme in Financial Energy Analysis since autumn 2000. The programme was revised in 2006 in order to make it available to a wider European market. It is now offered in English. The scope of the programme has been expanded to cover a wider selection of energy sources and markets. The programme has five intensive seminars, providing a total of 24 ECTS points. Four of the seminars will be held in and a fifth in Bergen. All course assignments and the final exam can be delivered in English, Danish, Norwegian or Swedish. Programme goals A financial marketplace for energy has developed to meet need for risk management amongst producers, suppliers and consumers. Forwards are traded for changing variable prices to fixed prices, or for changing future prices between different areas or forms of energy. In addition contracts are traded to secure minimum or maximum prices, or to provide a right to change future prices for different forms of energy or areas (options). An energy company can use information from the energy financial market as the basis for estimating the market value of a given position, activity or segment (mark-to-market), and its exposure to risk (Value at Risk). Market information can also be used with a view to achieving a more profitable use of resources in a business, for example in production or distribution. At the same time an energy company can operate actively in the energy market to implement its own risk management strategy or to take a position on own market view. One of the purposes of the programme is to provide knowledge and insight on the basics and principles of option-pricing theory with regard to the energy financial markets. This can be applied to supporting decisions at the corporate level in the energy sector. Target group and organisation of the programme The Certificate in Financial Energy Analysis is a specialised programme, developed for people working with corporate level decisions in the European energy market. People linked to other product markets, financial institutions or public competition and regulation bodies can also benefit from this programme. The programme is demanding and requires active participation from everybody involved. Participants are expected to work on assignments between sessions, and these will form the basis for discussion and follow-up during the next session. Page 4
REFERENCES The Programme enabled me to better understand how to operate and manage market positions and how to improve forecasts. provided excellent lecturers. Both the professors covering the theoretic basis and the executives from the market had interesting angles and ensured that the programme was challenging and relevant. Yngve Torvanger, Norway Senior Market Analyst Statoil Natural Gas, Norway Håkan Sandebjer, Sweden Risk Management Analyst Nord Pool Clearing ASA Studying together with people from different parts of the market throughout almost a year is beneficial both professionally and socially. Henriette Amundrustad, Norway Market Analyst Statkraft Energi AS Teaching was concentrated in three day assemblies. I would say three days was necessary in order to obtain the best focus and concentration. Bo Lynge Rydahl, Denmark Managing Director Nordjysk Elhandel Aalborg, Denmark See www. nhh.no/executive for further referenses Page 5
PRACTICAL INFORMATION PRACTICAL INFORMATION ADMISSIONS REQUIREMENTS A minimum of three years higher education equivalent to a bachelor degree and relevant work experience is required. The programme builds on previous knowledge of finance, mathematics and statistics, and it is required that applicants have a business, economics, or technical education that contains elements of these. TUITION FEE 12 500 ( 6 250 per semester) Optional accomodation at Radisson SAS Royal Hotel is estimated to 480. APPLICATION DEADLINE The deadline for receipt of applications is May 1 st 2007. A rolling admissions process is used, so early admission is recommended to avoid disappointment. DOCUMENTATION REQUIREMENTS Information provided in the application must be supported with copies of relevant documentation. Transcripts of grades received from higher education institutions and letters of reference from employers are required to be sent with the application. All copies of grade transcripts and letters of reference should be confirmed as true copies of the original documents by a lawyer, charted accountant or a civil servant. can undertake this certification if applicants send in original documents with the application (originals will be returned promptly) PROGRAMME DURATION, SCOPE AND LEVEL The programme will run over one year as a part-time programme, totalling 24 ECTS. See session plan on page 2. EXAM The programme finishes with a six hour written exam, which can be taken in either Bergen or LANGUAGE All classes and literature are in English. Assignments and the final exam can be submitted in either English, Danish, Norwegian or Swedish. NOTIFICATION OF CHANGES reserves the right to make changes to the dates and prices stipulated in this document. APPLICATION FORM Please find application form at www.nhh.no/executive Page 6
EXECUTIVE EDUCATION AT EXECUTIVE EDUCATION AT has been offering high-quality executive education programmes in the fields of economics and business administration for over 50 years. The school has also developed a number of specialised courses and programmes in partnership with other leading institutions, both nationally and internationally. The following specialised programmes are designed to be combined with a professional career: EXECUTIVE MBA PROGRAMMES OTHER SPECIALISED PROGRAMMES MBA in Strategic Management MBA in Management Control MBA in Public Economics and Management MBA in Brand Management MBA in Finance Authorised Financial Analyst (AFA programme) Part-time courses in economics and business administration at the bachelor level Customised executive programmes for corporate clients Please find application form at www.nhh.no/executive Page 7
NORGES HANDELSHØYSKOLE Executive Education Department Helleveien 30, NO-5045 Bergen Norway Telephone: +47 55 95 96 00 Fax: +47 55 95 96 01 E-mail: etterutdanning@nhh.no www.nhh.no/executive OKTAN Publicis