117:(a payback in 2–3 years). This outsized expectation (utilities operate on 5-10% ROI) can be explained by a high degree of uncertainty on the consumer side (e.g., consumers are unaware of the utility rates if the far future), absence of incentives in some cases (e.g., an owner of apartment building does not pay for the electricity and thus has no reason to pay for the improvements), high equipment costs. Utilities can improve the situation by using a leverage they have with manufacturers by ordering equipment for the improvements in bulk.
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the US law defines IRP as a planning process that evaluates the full range of alternatives, including new generating capacity, power purchases, energy conservation and efficiency, cogeneration and district heating and cooling applications. The methodology requires the utility to be able to influence
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higher electricity rates may be needed for the utility to recover the investment (IRP only gained momentum once the utilities were allowed to pass the investments into conservation onto customers through higher rates). The increased rates will affect some consumers disproportionally, creating the
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used by the public utilities. The goal is to meet the expected long-term growth of demand with minimal cost, using a wide selection of means, from supply-side (increasing production and/or purchasing the supply) to demand-side (reducing the consumption). For example, for an
91:; electricity is converted into other services, so improvements of the efficiency of the industrial equipment, lighting, air conditioning, household appliances can be potentially a more cost-efficient way to accommodate growth. Under the pressure of
67:) ones. IRP effectively ends with deregulation. The deregulated utilities (the ones that are customer-facing, without the generation plants) still can engage in the IRP, and some interest returned in late 2010s.
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IRP is not needed: the demand-side would adjust on its own by the cost-reduction on the consumer size. In practice, there are many hindrances on the way of the consumer to a more efficient behavior:
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are hard to measure, unlike the expenses and results of the capacity improvements, and a too optimistic estimate of the savings can translate into problems with the
517:
Bertschi, Scott F. (1994). "Integrated
Resource Planning and Demand-Side Management in Electric Utility Regulation: Public Utility Panacea or a Waste of Energy?".
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lack of information, especially for residential and small business customers. Utilities need to plan for information and auditing actions to overcome this problem;
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taking the lead, and by the 1990s the use of IRP in most of the United States was either mandated or under considerations, Europe was lagging behind.
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government mandating the utility to directly subsidize the low-income residential customers, thus engaging in a forced charity;
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improvement of relations between the utility and its customers through the customers' input into the IRP process;
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Historically, utilities had approached long-term planning from the supply-side (for an electric utility, more
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opening new business opportunities and improving local employment related to the installation of equipment.
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Carvallo, Juan Pablo; Larsen, Peter H.; Sanstad, Alan H; Goldman, Charles A. (19 July 2017),
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Power for the People: Protecting States' Energy Policy
Interests in an Era of Deregulation
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better load forecasting through a deeper understanding of the demand-side behavior;
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87:). However, the benefits of its consumption cannot be measured directly in
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393:"Creating the Future: Integrated Resource Planning for Electric Utilities"
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23:"Integrated resource plan" redirects here. For a South African plan, see
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Load
Forecasting in Electric Utility Integrated Resource Planning
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from production to consumption, so in the US it is used by many
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high payback expectations. A typical consumer expects a high
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95:, the IRP use started in the US in the middle of 1970s with
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430:, Office of Scientific and Technical Information (OSTI),
452:"Energy Efficiency in Regulated and Deregulated Markets"
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134:greater efficiency and lower risk for the utility;
362:"An Introduction to Integrated Resource Planning"
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16:"LCUP" redirects here. For a university, see
459:UCLA Journal of Environmental Law and Policy
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397:Annual Review of Energy and the Environment
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161:IRP comes with its own set of drawbacks:
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366:Integrated Electricity Resource Planning
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126:The use of IRP brings many economic and
368:. Springer Netherlands. pp. 1–34.
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391:Hirst, E; Goldman, C (November 1991).
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18:La Consolacion University Philippines
409:10.1146/annurev.eg.16.110191.000515
176:the energy savings and cost of the
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14:
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494:Timney, Mary M. (29 April 2015).
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1:
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122:Advantages and disadvantages
31:Integrated resource planning
7:
496:"Restructuring electricity"
374:10.1007/978-94-011-1054-9_1
360:Almeida, Anibal T. (1994).
150:greater utilization of the
39:least-cost utility planning
10:
563:
353:
22:
15:
152:variable renewable energy
450:Rotenberg, Edan (2005).
25:Integrated Resource Plan
178:demand side management
547:Electricity economics
139:environmental impacts
61:vertically integrated
230:Carvallo et al. 2017
115:return-on-investment
471:10.5070/L5241019530
286:, pp. 849–850.
55:all aspects of the
47:least-cost planning
104:electricity market
520:Emory Law Journal
509:978-1-317-46228-6
383:978-94-010-4458-5
334:, pp. 11–12.
182:resource adequacy
128:quality of living
93:environmentalists
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527:(2): 815–851.
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272:Almeida 1994
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85:distribution
81:transmission
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57:supply chain
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257:Timney 2015
218:§ 2602
536:Categories
189:References
154:resources;
130:benefits:
97:California
77:generation
71:Background
487:0733-401X
479:1942-8553
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417:1056-3466
170:problems;
542:Planning
137:reduced
354:Sources
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168:equity
475:eISSN
465:(1).
455:(PDF)
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483:ISSN
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378:ISBN
220:(19)
43:LCUP
467:doi
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35:IRP
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