Evaluating risk management strategies in resource planning
- Princeton Univ., NJ (United States). Woodrow Wilson School
This paper discusses the evaluation of risk management strategies as a part of integrated resource planning. Value- and scope-related uncertainties can be addressed during the process of planning, but uncertainties in the operating environment require technical analysis within planning models. Flexibility and robustness are two key classes of strategies for managing the risk posed by these uncertainties. This paper reviews standard capacity expansion planning models and shows that they are poorly equipped to compare risk management strategies. Those that acknowledge uncertainty are better at evaluating robustness than flexibility, which implies a bias against flexible options. Techniques are available to overcome this bias.
- OSTI ID:
- 49230
- Report Number(s):
- CONF-940702-; ISSN 0885-8950; TRN: 95:011569
- Journal Information:
- IEEE Transactions on Power Systems, Vol. 10, Issue 1; Conference: 1994 Institute of Electrical and Electronic Engineers/Power Engineering Society (IEEE/PES) summer meeting, San Francisco, CA (United States), 24-28 Jul 1994; Other Information: PBD: Feb 1995
- Country of Publication:
- United States
- Language:
- English
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