Mining and Minerals Engineering

CSM3369 - Economic Resource Assessment and Appraisal (2011)

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MODULE TITLEEconomic Resource Assessment and Appraisal CREDIT VALUE10
MODULE CODECSM3369 MODULE CONVENERDr Adam Feldman (Coordinator), Neill Wood V.R., A.R.S.M., F.H.E.A., Dr Peter Connor
DURATION: TERM 1 2 3
DURATION: WEEKS
Number of Students Taking Module (anticipated)
DESCRIPTION - summary of the module content
AIMS - intentions of the module
The module aims to develop understanding as to how the global energy industry can be considered as a unique investment opportunity. Mastering the topic will allow sensible and successful development of renewable energy ventures. The module’s ultimate purpose is to develop a pragmatic approach to using knowledge acquired in each of the pre-requisite and co-requisite modules as detailed above.
INTENDED LEARNING OUTCOMES (ILOs) (see assessment section below for how ILOs will be assessed)
SYLLABUS PLAN - summary of the structure and academic content of the module
Energy economics: Economics of renewable energy, with a focus on micro-economic elements of renewable energy project development. Societal responses to environmental problems including the role of environmental externalities. Theory underpinning the development of new technologies from the research phase through to market readiness. Consideration of comparative learning curves for multiple technologies. Price reduction in response to increased use of a technology. Introduction to the themes and nomenclature associated with the financial aspects of project assessment and development. Introduction to and application of the main factors that control capital investment - capital intensity, long pre-production periods, high risks, infrastructure, environmental constraints and nature of resource. The role and sources of finance in the renewable energy sector. Feasibility studies: what each is used for; its usual contents; and the level of accuracy of estimates compared to the engineering work actually completed (Order of magnitude, preliminary, definitive, detailed). Role of Cash flow modelling & valuation. Price of energy & costs of generation. Measuring environmental externalities, climate change costs. Support mechanisms: energy & carbon taxes, green certificates, renewables obligation, emissions trading. Case studies. Cost Estimation: Capital costs - the methods available for estimating both fixed and working capital costs, depending on the type of study being carried out. Operating cost estimation methods. Cost indices, and a description of the Systems Approach to cost estimating. Formulation of Cashflow Models. Revenue, operating cost, royalty, rent, operating margin. Methods of calculation of capital allowances. Calculation of taxable income and tax payable. The cashflow equation. Valuation Metrics. Simple payback period. Discounted cashflows. Net present value. Internal rate of return. Discounted cost of electricity production. Optimisation and Financial Risk Assessment: Production rate optimisation methods for energy ventures. General coverage of risk analysis and how it is used in project evaluation: Sensitivity analysis, scenario analysis, Monte Carlo Analysis. Project Finance: Equity Loan finance Effect of capital structure on project valuation
LEARNING AND TEACHING
LEARNING ACTIVITIES AND TEACHING METHODS (given in hours of study time)
Scheduled Learning & Teaching Activities Guided Independent Study Placement / Study Abroad
DETAILS OF LEARNING ACTIVITIES AND TEACHING METHODS
ASSESSMENT
FORMATIVE ASSESSMENT - for feedback and development purposes; does not count towards module grade
SUMMATIVE ASSESSMENT (% of credit)
Coursework 100 Written Exams 0 Practical Exams
DETAILS OF SUMMATIVE ASSESSMENT
DETAILS OF RE-ASSESSMENT (where required by referral or deferral)
RE-ASSESSMENT NOTES
RESOURCES
INDICATIVE LEARNING RESOURCES - The following list is offered as an indication of the type & level of
information that you are expected to consult. Further guidance will be provided by the Module Convener

Reading list for this module:

There are currently no reading list entries found for this module.

CREDIT VALUE 10 ECTS VALUE 5
PRE-REQUISITE MODULES CSM1274, CSM2043, CSM2274, CSM2275
CO-REQUISITE MODULES CSM2319, CSM3361, CSM3365, CSM3371, CSM3372, CSM3375
NQF LEVEL (FHEQ) 3 (NQF Level 6) AVAILABLE AS DISTANCE LEARNING No
ORIGIN DATE Thursday 15 December 2011 LAST REVISION DATE Thursday 15 December 2011
KEY WORDS SEARCH None Defined