Integrated Resource Planning (IRP) Process

This post picks up from the last one on Electricity Industry Cycle.

Up to about 1990, a single electricity Utility was responsible for generation, transmission, distribution, and retail services in most jurisdictions.
In order to minimize the delivered cost of electricity, the integrated Utility performed Integrated Resource Planning (IRP) which provided a high to medium level plan.
Integrated Resource Plan was usually filed with the Regulator or the Government which reviewed it for compliance with the requirements, in a public proceeding in some jurisdictions.
Some countries, states, or provinces still follow this general approach.

Integrated Resource Plan provides the optimal combination of capital investments, and operating and maintenance expenses in generation, transmission, distribution, and retail areas i.e. a portfolio, for a few credible scenarios. The following chart describes the IRP:

NextEraInsights.com
While the IRP is usually associated with integrated Utilities, the same general process can be used by any Organization to create an optimal plan.
Most Organizations have a clear objective function of minimizing cost, or maximizing revenue or profit. Achieving optimal result requires creating investment and operations portfolios for credible scenarios, that the IRP provides.

Integrated Resource Planning process involves almost every business unit.
Good understanding of the process, roles, responsibilities, and accountabilities is essential for all decision makers, management, and technical professionals.

NextEra Insights has significant knowledge, experience, and insights into Integrated Resource Planning.
NextEra Insights offers education, collaboration, and advisory services with a focus on creating value by installing new process or improving existing process.

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