An efficient approach to identify and integrate demand-side management on electric utility generation planning

Abstract

The electric utility planning environment has changed dramatically over the last few years. Utilities now need to include a wider variety of resources to meet the demand growth and increasing technical, economic, and environmental constraints. As a result, demand-side management (DSM) is widely implemented as part of the generation planning process. Since DSM programs have immediate benefits with respect to system reliability and financial performance, it is necessary that probabilistic production costing and reliability analysis be performed for the available DSM options. An efficient approach is presented which utilizes the eigenvector method (EVM) and a new load duration curve (LDC) model for the analysis. The EVM technique, based on expert opinions and mathematical analyses, estimates DSM impacts on future electricity demand. These impacts are than properly reflected in the load duration pattern and integrated into the supply-side planning process by using the new LDC model. A case study involving selected peak reduction programs in a medium-sized US electric utility is presented to show how DSM load impacts can be evaluated with the proposed approach.