Energy Investment and Risk Analysis

Course Information

Course Code:
CEE 719



Course Summary

The course complements CEE 717: Energy Finance & Project Management. Building on the concepts in CEE 717, this course focuses on the methods and procedures for deciding whether or not to invest in an energy venture. Given that demand for investment capital is driven by the availability of positive investment decisions, this course is concerned with how to select combinations of investment projects and financing options to maximize return on investment while minimizing the risks to which the company is exposed as a result of such decisions. Specific topics include: Introduction to the Peculiar Investment Characteristics and Economics of Energy Ventures; Financial Policy; Equity Finance and Corporate Debt; Project Finance; Energy Project Cash Flows and Investment Decisions and Valuation; Risk and the Price of Risk in Energy Projects; Capital Asset Pricing Model; Arbitrage Pricing Model (APM) and Other Pricing Models; Introduction to Options and Derivatives; Real Options Methodologies; Mergers and Acquisitions; and Investing in Developing Countries.