Basics of Economic Assessment

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17ZEH ZK 2 2+0 Czech
Radovan Starý (guarantor)
Department of Nuclear Reactors

The course focuses on the economic evaluation of Nuclear power plants. Introductory lectures are concerned with an introduction to economy and the basic component parts of microeconomics. Lectures continued with insight into the business and managerial economics, explanation of the concepts of incomes, expenses, etc. and their applications in electrical energy resources evaluation. Second part of lectures is focused on evaluation of nuclear power plants - the fuel cycle and operations of NPP.

Syllabus of lectures:

1. Introduction to Economics

Scope: 1 lecture

Lecture content:

Introductory lecture - introduction to the problems, explanation of basic terms. Economics and business administration, the basic concepts of microeconomics and macroeconomics.

2. Introduction to Microeconomics

Scope: 2 lectures

Lecture content:

Market and basic market elements, supply and demand, balance of economy, total,

average, fixed, variable and marginal costs and revenues, consumer behavior, theory of the firm, price formation, perfect and imperfect competition, examples of imperfect competition, monopoly, oligopoly, price and it´s regulation.

3. Introduction to Business Administration

Scope: 2 lectures

Lecture content:

Company's assets and capital structure, revenues, costs and profit of the enterprise, profit and relationships between the company's basic economic values, break-even point analysis, operating and financial leverage effect.

4. Economics of Electricity Production

Scope: 3 lectures

Lecture content:

Supply and demand for electricity, typical annual and daily consumption chart, fixed and variable costs of different power sources, construction of the supply function of electric energy and its shifts, examples according to selected market, capacity factors of different power sources

5. Externalities in power generation

Scope: 1 lecture

Lecture content:

The concept of externality, negative and positive externalities, externalities in energy, nuclear power externalities, comparisons between sources

6. Economics of nuclear energy,

Scope: 2 lectures

Lecture content:

Capital, O&M and fuel costs of nuclear power plants and their comparison with other sources, evaluation of nuclear fuel cycle - mining and milling, conversion, enrichment, fabrication, evaluation of fuel reprocessing and permanent storage, calculation of LCOE

7. Evaluating methods of investments

Scope: 2 lectures

Lecture content:

Marketing analyzes, weighted average cost of capital - corporate discount rates, static and dynamic methods of evaluating, PBP, NPT, IRR, examples

8. The theory of innovation

Scope: 1 lecture

Lecture content:

Innovative processes, Schumpeter innovation waves, innovation impulses, innovation lifecycle.

Syllabus of tutorials:


Study Objective:


Understanding the basic topics of microeconomics and business administration. Orientation in the differences between the evaluation of different sources of electricity. Understending of power market. Understanding the economic eveluation of fuel cycle and NPP operation.


Orientation in the given issue, understanding the economic differences in the production of el. energy from different sources.

Study materials:

SCHILLER, Bradley R. Mikroekonomie dnes. Brno : Computer Press, 2004. 412 s. ISBN 80-251-0169-X.

KIRSCHEN, Daniel S., STRBAC, Goran. Fundamentals of Power System Economics. 1st edition. Chichester England : John Wiley & Sons Ltd., 2004. 296 s. ISBN 0-470-84572-4.

STOFT, Steven. Power System Economics : Designing Markets for Electricity. 1st edition. [s.l.] : Wiley-IEEE Press, 2002. 496 s. ISBN 0-471-15040-1.

NORD POOL. Elspot Market Data [online]. Oslo, <http://www.nordpoolspot.com>.

Time-table for winter semester 2018/2019:
Time-table is not available yet
Time-table for summer semester 2018/2019:
Time-table is not available yet
The course is a part of the following study plans:
Data valid to 2019-06-26
For updated information see http://bilakniha.cvut.cz/en/predmet1918306.html