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Integrated Resource PlanninglDemand-Side-Management Ratio Tests Introducfion Integrated resource planning (IRP) is a resource plamingpocess that considers the entire utility chain, from how customers consume electric power (demand-side management [DSM]), to the alternatives available for adding generation capacities (supply-side options), As of June 1993, utilities in at least 46 states either had functioning IRP strategies or were considering, developing, or implementing an IRB process? The IRP concept is broader thantraditional resource planning in several ways (Logan, Neil, and Taylor 1994): IRP considers different analysis perspectives, evaluating the overall consequences of a program fi-om the viewpoint of the utility company, the participating consumer, the nonparticipating consumer, and society as a whole. Public involvement methods and environmental concerns are considered in the development of the plan. DSM options consider the fidl potential of cost-effective conservation, marketing, and load management programs. Supply-side options include both traditional and alternative generating sources. IRP carefully analyzes the uncertainties and risks posed by different DSM and supply-side options and by external factors (Goldman, €€irst,and Krause 1989). Including renewable energy resources in IRP requires that utility planners properly consider the relevant attributes of different renewable energy resources. Table 4-14 lists the resource attributes usually consideredintheIRPprocess. Keyattributesforrenewableresourcesareidentifiedwithasuperscript"a." The Western Area Power Administration (WAPA) has developed the Resource Planning Guide (WAPA 1993) to assist its customers in the development of IRP. The guide addresses each phase of the IRP process. The quality of a particular IW process depends on how well the following phases are linked, as well as on the quality of the data and analysis used within each phase: Situation Analysis: The situation analysis phase identifies problems, needs, and opportunities related to a specific utility profile. The utility profile is based on such indicators as customer mix, historical loads, projected growth, and wholesale rates. The information collected in this phase results in a list of DSM and supply-side options based on the utility's profile and a list of relevant resource attributes for each resource option. 26Utilities have for years undertaken forms of least-cost and resource planning to some degree in their operations but not to the extent and without the specific regulatory context that is now prevalent. 62PDF Image | A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies
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