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Valuation of Renewable and Distributed Resources: Implications for the Integrated Resource Planning Process

AUTHOR: Datta, Kyle; Hansen, Lena; Swisher, Joel
DOCUMENT ID: 2006-09
YEAR: 2006
DOCUMENT TYPE: Report or White Paper
PUBLISHER: Electric Power Research Institute
 
Over the last two decades, traditional integrated resource planning (IRP) has proven to be a valuable tool for evaluating the tradeoffs between supply-side generation and demand-side efficiency resources. However, there has been increasing focus on the incorporation of renewable, distributed, and demand-side resources into utility planning, which requires new methodologies to assess the value of these resources. Traditional IRP is generation-centric and typically fails to take into account the operational performance and costs and benefits of the distribution system. Traditional IRP takes a narrow view of reliability as loss of load probabilities and can neglect the more subtle issues of power quality. Traditional IRP rarely quantifies the risk tradeoffs between fossil and renewable resources. In support of the integrated resource plans of Hawaiian Electric Company (HECO) and its subsidiary companies Maui Electric Company (MECO) and Hawaii Electric Light Company (HELCO), EPRI with leadership from Rocky Mountain Institute (RMI) conducted a series of workshops. These workshops provided information to HECO staff on RMI’s methodologies to integrate risk/benefit analysis of energy resources into the integrated resource planning process. HECO seeks practical methods for their IRP practitioners to integrate these issues into current and future IRP processes. RMI has codified its insights into incorporating renewable, distributed, and demand-side resources into the integrated planning process with its Energy Resource Investment Strategy (ERIS) methodology. This report documents the details of the workshops presented to the HECO utilities.
 
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