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Not certain how to gain access to the academy or magic power. Cant seem to advance anymore.

you need  to make special potion  in the alchemy shop,  all things needed for it can be obtained here as well, then you go to the zone where you meet savi and you have your magic.  for academy just follow nico/alis story,  at some point Ellen will visit Mia about their magic change and then you just follow story. 

oh right, I forgot you can buy stuff in the alchemy shop. Of course.