Measuring the economic value of demand-side and supply resources in integrated resource planning models

Journal Article · Sun Aug 01 04:00:00 EDT 1993 · IEEE Transactions on Power Systems (Institute of Electrical and Electronics Engineers); (United States)

DOI:https://doi.org/10.1109/59.260903· OSTI ID:5657515

Hobbs, B F ^[1]; Rouse, H B ^[2]; Hoog, D T ^[3]

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1. Case Western Reserve Univ., Cleveland, OH (United States)
2. Energy Management Associates, Inc., Atlanta, GA (United States)
3. Synergic Resources Corp., Bala Cynwyd, PA (United States)

When comparing the economics of alternative portfolios of supply and demand-side resources, utility planners should consider not only costs but also effects upon the benefits, or value,'' that electricity consumers receive. A method for including such effects in comprehensive resource planning models is presented. This method considers the value impacts of electric rate changes, takeback'' of energy savings in conservation programs, and increases in energy services provided by load building or valley-filling programs. In general, the method rewards resource portfolios that cause rates to move closer to marginal cost or increase the energy services provided. Applications of a net value objective in several resource planning models are summarized. They confirm that optimizing net value can yield different resource portfolios than minimizing cost.

• OSTI ID: 5657515
• Journal Information: IEEE Transactions on Power Systems (Institute of Electrical and Electronics Engineers); (United States), Journal Name: IEEE Transactions on Power Systems (Institute of Electrical and Electronics Engineers); (United States) Vol. 8:3; ISSN ITPSEG; ISSN 0885-8950
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
296000 -- Energy Planning & Policy-- Electric Power
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION
320603* -- Energy Conservation
Consumption
& Utilization-- Municipalities & Community Systems-- Public Utilities-- (1980-)
ECONOMIC ANALYSIS
ECONOMICS
ELECTRIC UTILITIES
LOAD ANALYSIS
LOAD MANAGEMENT
MANAGEMENT
PLANNING
PUBLIC UTILITIES
RATE STRUCTURE