A framework for integrated resource planning in the electric power sector

Abstract

A framework is presented showing the process of integrated resource planning in the electric power sector. This takes into account the traditional utility planning process, and shows how the use of advanced decision analysis tools would facilitate the integration of demand‐side management (DSM) and environmental factors. The concept of influence diagram is introduced in the utility planning arena. Using the interdependent data analysis (IDA) technique, a way is shown to provide the probability estimates necessary for the influence diagram. The IDA technique allows the use of expert opinions and intuitive judgements to develop the necessary probability estimates. A sample case study is presented where the issue of environmental impact from stack emissions is incorporated. A base case coal option is compared against a gas turbine combined cycle (GTCC) alternative. Energy costs from these two options are compared by taking into account the capital, licensing, fuel, operation and maintenance, and emissions related costs.