A Good Integrated Resource Plan

A Good Integrated Resource Plan
Author:
Publisher:
Total Pages: 77
Release: 1992
Genre:
ISBN:

Integrated resource planning helps utilities and state regulatory commissions consistently assess a broad range of demand and supply resources to meet customer energy-service needs cost-effectively. Key characteristics of this planning approach include: explicit consideration and fair treatment of a wide variety of demand and supply options, consideration of the environmental and other social costs of providing energy services, public participation in the development of the resource plan, and analysis of the uncertainties associated with different external factors and resource options. Integrated resource planning differs from traditional planning in the types and scope of resources considered, the owners of the resources, the organizations involved in resource planning, and the criteria for resource selection. This report presents suggestions to utilities on how to conduct such planning and what to include in their resource-planning reports. These suggestions are based on a review of about 50 resource plans as well as discussions with and presentations to regulators and utilities. The suggestions cover four broad topics; the technical competence with which the plan was developed; the adequacy, detail, and consistency (with the long-term plan) of the short-term action plan; the extent to which the interests of various stakeholders was considered, both in public participation in plan development and in the variety of resource plans developedand assessed; and the clarity and comprehensiveness of the utility's report on its plan. Technical competence includes energy and demand forecasts, assessment of supply and demand resources, resource integration, and treatment of uncertainty. Issues associated with forecasts include forecasting approaches; links between the forecasts of energy use and peak demands; and links between the forecasts and the effects of past, present, and future demand-side management programs.

Integrated Electricity Resource Planning

Integrated Electricity Resource Planning
Author: A. de Almeida
Publisher: Springer Science & Business Media
Total Pages: 531
Release: 2012-12-06
Genre: Technology & Engineering
ISBN: 9401110549

Since the mid-seventies, electric utilities were faced with escalating construction costs, growing environmental plus siting constraints and increasing uncertainty in demand forecasting. To cope with the increasing demand for energy services, utilities can either invest in supply-side options (new generation, transmission and distribution facilities) or in demand-side options. Demand-side options include, policies, programmes, innovative pricing schemes and high-efficiency end-use equipment (equipment providing the same or better level of services but using less energy or peak power). Recent experience in both North America and Europe show that demand-side options are usually cheaper and less damaging from the environmental point of view, and also their potential can be tapped in a shorter term than other supply-side options. This workshop was directed at the discussion and analysis of cost-effective methodologies to achieve the supply of electric energy services at minimum cost and minimum environmental impact. The programme included new developments in power planning models which can integrate both supply-side and demand-side actions. Quantitative assessments of the environmental impact of different supply-demand strategies were analyzed. Planning models which deal with uncertainty and use multicriteria approaches were presented. Case studies and experiments with, innovative concepts carried out by utilities in several countries were discussed. Load modelling and evaluation of demad-side programmes was analyzed. Additionally, the potential for electricity savings in the industrial, commercial and residential sectors was presented. New research directions covering planning models, programmes and end-use technologies were identified.

Electric Utility Resource Planning

Electric Utility Resource Planning
Author: Steven Sim
Publisher: CRC Press
Total Pages: 337
Release: 2011-12-15
Genre: Science
ISBN: 1439884072

Most people—including many legislators, regulators, and other decision makers in the electric utility industry—have misconceptions about how electric utilities really "work" and plan for the future. This lack of understanding can lead to poorly informed decisions and policies that directly affect the choices utilities must make. Using easy-to-understand text and examples, Electric Utility Resource Planning: Economics, Reliability, and Decision-Making clarifies how utilities operate their systems and prepare for the future. This explanation will show readers that both expected and counterintuitive results can occur (i.e., conservation might result in higher air emissions, or lowering costs could lead to higher electric rates). Taking readers step by step through this process, the book (in the following order): "Creates" a hypothetical utility Explains how and why a utility operates its system of generating units Discusses the planning methods that a utility would (or should) use Guides readers through each stage of a planning analysis for the hypothetical utility, examining various resource options (conservation, new power plants, and solar) In addition, the author introduces four Fundamental Principles of Resource Planning that should guide utilities. He also offers opinions on how certain trends in utility regulation and legislation can hinder utility planners’ efforts to identify and select the best resources for the utility’s customers. With this book, author Dr. Steven Sim applies his experience and insights from more than two decades of resource planning for Florida Power and Light (FPL). As one of the largest utilities in the United States, FPL has faced a multitude of resource planning challenges, and Dr. Sim has performed and supervised thousands of analyses designed to meet these obstacles. He has also served as an FPL witness in regulatory hearings on a wide variety of topics, ranging from the economic implications of nuclear, conservation, coal, gas, and other resource options, to the non-economic impacts (air emissions, fuel usage, system reliability, etc.) they present.

Modeling Renewable Energy Resources in Integrated Resource Planning

Modeling Renewable Energy Resources in Integrated Resource Planning
Author:
Publisher:
Total Pages: 110
Release: 1994
Genre:
ISBN:

Includes renewable energy resources in integrated resource planning (IRP) requires that utility planning models properly consider the relevant attributes of the different renewable resources in addition to conventional supply-side and demand-side options. Otherwise, a utilitys̀ resource plan is unlikely to have an appropriate balance of the various resource options. The current trend toward regulatory set-asides for renewable resources is motivated in part by the perception that the capabilities of current utility planning models are inadequate with regard to renewable resources. Adequate modeling capabilities and utility planning practices are a necessary prerequisite to the long-term penetration of renewable resources into the electric utility industrys̀ resource mix. This report presents a review of utility planning models conducted for the National Renewable Energy Laboratory (NREL). The review examines the capabilities of utility planning models to address key issues in the choice between renewable resources and other options. The purpose of this review is to provide a basis for identifying high priority areas for advancing the state of the art.

Utility Integrated Resource Planning

Utility Integrated Resource Planning
Author:
Publisher:
Total Pages:
Release: 2005
Genre:
ISBN:

In the United States, markets for renewable generation--especially wind power--have grown substantially in recent years. This growth is typically attributed to technology improvements and resulting cost reductions, the availability of federal tax incentives, and aggressive state policy efforts. But another less widely recognized driver of new renewable generation is poised to play a major role in the coming years: utility integrated resource planning (IRP). Common in the late-1980s to mid-1990s, but relegated to lesser importance as many states took steps to restructure their electricity markets in the late-1990s, IRP has re-emerged in recent years as an important tool for utilities and regulators, particularly in regions such as the western United States, where retail competition has failed to take root. As practiced in the United States, IRP is a formal process by which utilities analyze the costs, benefits, and risks of all resources available to them--both supply- and demand-side--with the ultimate goal of identifying a portfolio of resources that meets their future needs at lowest cost and/or risk. Though the content of any specific utility IRP is unique, all are built on a common basic framework: (1) development of peak demand and load forecasts; (2) assessment of how these forecasts compare to existing and committed generation resources; (3) identification and characterization of various resource portfolios as candidates to fill a projected resource deficiency; (4) analysis of these different ''candidate'' resource portfolios under base-case and alternative future scenarios; and finally, (5) selection of a preferred portfolio, and creation of a near-term action plan to begin to move towards that portfolio. Renewable resources were once rarely considered seriously in utility IRP. In the western United States, however, the most recent resource plans call for a significant amount of new wind power capacity. These planned additions appear to be motivated by the improved economics of wind power, an emerging understanding that wind integration costs are manageable, and a growing acceptance of wind by electric utilities. Equally important, utility IRPs are increasingly recognizing the inherent risks in fossil-based generation portfolios--especially natural gas price risk and the financial risk of future carbon regulation--and the benefits of renewable energy in mitigating those risks. This article, which is based on a longer report from Berkeley Lab, i examines how twelve investor-owned utilities (IOUs) in the western United States--Avista, Idaho Power, NorthWestern Energy (NWE), Portland General Electric (PGE), Puget Sound Energy (PSE), PacifiCorp, Public Service Company of Colorado (PSCo), Nevada Power, Sierra Pacific, Pacific Gas & Electric (PG & amp;E), Southern California Edison (SCE), and San Diego Gas & Electric (SDG & amp;E)--treat renewable energy in their most recent resource plans (as of July 2005). In aggregate, these twelve utilities supply approximately half of all electricity demand in the western United States. In reviewing these plans, our purpose is twofold: (1) to highlight the growing importance of utility IRP as a current and future driver of renewable generation in the United States, and (2) to suggest possible improvements to the methods used to evaluate renewable generation as a resource option. As such, we begin by summarizing the amount and types of new renewable generation planned as a result of these twelve IRPs. We then offer observations about the IRP process, and how it might be improved to more objectively evaluate renewable resources.

Electric Utility Resource Planning

Electric Utility Resource Planning
Author: Joe Ferrari
Publisher: Elsevier
Total Pages: 260
Release: 2020-09-09
Genre: Business & Economics
ISBN: 0128226102

Electric Utility Resource Planning: Past, Present and Future covers the balance of renewable costs, energy storage, and flexible backstop mechanisms needed in electric utility resource planning. In addition, it covers the optimization of planning methodologies and market design. The book argues that net load, ramping and volatility concerns associated with renewables call into question the validity of almost a century of planning approaches. Finally, it suggests that accounting for flexibility helps optimize the efficiency of the entire fleet of assets, minimizing costs and CO2 generation simultaneously, concluding that a flexible, independent backstop mechanism is needed, regardless of renewables or storage. Case studies provide a mix of hypothetical "what if" scenarios and analyses of real-life utility portfolios drawn from international examples. - Examines how resource planners and policy specialists can plan to incorporate renewable generation technologies, thus uniting considerations of technology, methodology, business and policy - Focuses on the reality of long-term decision-making and planning processes in working utilities - Reviews novel approaches towards resource planning that yield lower costs and CO2 - Emphasizes the need for flexible backstop mechanisms to maintain reliability

An Integrated Assessment of Electric Power Resource Options in the US Virgin Islands

An Integrated Assessment of Electric Power Resource Options in the US Virgin Islands
Author: Lawrence J. Hill
Publisher:
Total Pages: 82
Release: 1994
Genre:
ISBN:

As with other island-based, insular power systems, the avoided cost of power for the Water and Power Authority (WAPA) of the US Virgin Islands (USVI) is high relative to that of US mainland electric utilities. First, the need to produce potable water requires that WAPA's electric generating system operate at efficiency levels lower than would result in the absence of the need to jointly produce water and power. Second, the inability to purchase power from neighboring utilities necessitates higher reserve margins. These two operating conditions suggest that integrated resource planning (IRP) should be especially attractive to WAPA. IRP is a planning paradigm that gives electric utilities more options to choose from when making resource selections and, therefore, generally results in lower costs. Utilities look to the demand side as a source of resources--i.e., demand side management (DSM)--in this planning process. They then select the least-cost mix of resource options. In this study, we take the first steps toward implementing an IRP process in the USVI. Using its existing resource base and the supply and DSM options that it has in the future, we simulated WAPA's resource selection process over a 20-year planning horizon using SafePlan, an IRP planning model. The results suggest that WAPA can significantly reduce its cost of providing electricity by implementing DSM programs. The cost of generating electricity and the amount of kWh needed can be reduced nearly nine percent by implementing cost-effective DSM programs. Cost and kWh savings are greater under less favorable assumptions about (1) the input costs for generating electricity and (2) other conditions that WAPA will confront in the future. The results also indicate that DSM programs targeted at the residential sector can save, 500 gallons of water annually for participants in the program.