Tools and Methods for Integrated Resource Planning
Improving Energy Efficiency and Protecting the Environment

ISBN: 87-550-2332-0
ISSN: 1025-2258

Table of Contents

FOREWORD
PREFACE

CHAPTER 1. ENERGY SERVICES AND ENERGY EFFICIENCY
A. Introduction: Why Energy Efficiency?
A.1. Vulnerability to Energy Costs
A.2. Environmental Impact
A.3. The Need for Energy Efficiency
A.4. The Need for a New Planning Context
B. Basics of the Energy System
B.1. Energy Sources, Carriers and Uses
B.2. The Human Dimension of Energy
B.3. Energy Balance Accounting
C. Energy Services and Electricity Supply
C.1. Energy as a Commodity
C.2. Objectives of Bottom-Up Analysis
C.3. Structure of Electricity Supply: Load-Duration Curve
D. What is Integrated Resource Planning?
D.1. IRP and the Traditional Power-Planning Approach
D.2. Outline of an IRP Process
D.3. IRP Options
D.4. Who Carries Out the IRP Analysis?
D.5. IRP in the Context of Deregulation

CHAPTER 2. THE TECHNOLOGICAL STRUCTURE OF ENERGY DEMAND PROJECTIONS AND SCENARIOS
A. Models to Analyze and Forecast Energy Demand
A.1. Econometric Models
A.2. The End-Use Model
B. Projections of End-Use Energy Demand
B.1. Baseline Projections of Energy Services
B.2. Residential Sector End-Use Energy Projections
B.3. Commercial and Services Sector End-Use Energy Projections
B.4. Industrial End-Use Energy Projections
B.5. Load Curve
B.6. Data Requirements of End-Use Models
B.7. Estimation of End-Use Breakdown
C. Scenario-Based Projections Framework
C.1. Baseline Growth Projection Scenario
C.2. Technical Potential Scenario
C.3. Economic Potential Scenarios
C.4. Market Potential
D. Costs of Energy Scenarios
E. Screening of Demand Side Options: DSM Cost Effectiveness
E.1. Participant Test
E.2. Ratepayer Impact Measure (RIM) Test (also the Nonparticipants Test)
E.3. Total Resource Cost (TRC) Test
E.4. Societal Test
E.5. Utility Cost Test
E.6. Summary of DSM Cost Effectiveness Tests
E.7. Environmental Externalities
E.8. Non-Monetary Benefits of Energy Efficiency
F. Exercise on Frozen Efficiency Scenario: Electricity Demand Projections for Brakimpur

CHAPTER 3: RENEWABLES, ENERGY-EFFICIENCY PROGRAMS, AND DEMAND-SIDE MANAGEMENT (DSM)
A. Barriers to Energy Efficiency and Renewables
A.1. Information
A.2. Institutional and Legal Barriers
A.3. Financial Barriers
A.4. Technological Barriers and Infrastructure
A.5. Energy Prices and Rate Making
A.6. Diversity of Actors and Expectations
B. Energy Pricing
B.1. Block Tariffs
B.2. Marginal Cost Pricing
B.3. Demand Charges, Time-of-Use, and Seasonal Pricing
B.4. Green Pricing and Tax Benefits to Renewables
C. Electricity Tariffs and Energy-Efficiency Program Costs
C.1. Decoupling: California’s Electric Revenue Adjustment Mechanism
C.2. Recovering Program Costs: Ratebasing vs. Expensing of DSM Costs
C.3. DSM Incentives
C.4. The California Collaborative and Further Restructuring
C.5. PG&E’s Shared Savings Program
D. Renewables and Energy Substitution Programs
D.1. Electricity vs. Gas
D.2. Electricity vs. Solar
D.3. Cogeneration
D.4. District Heating
E. Government Programs
E.1. Information and Labeling
E.2. Standards and Regulation
E.3. The Effects of Standards Over Time
E.4. Technology Pro
E.5. Financial and Fiscal Mechanisms
F. Demand-Side Management (DSM) Strategies
F.1. Load Management
F.2. Investments in Energy Efficiency
F.3. Thailand’s DSM Program
F.4. Evaluation of DSM Programs
G. Exercise on Implementation Strategies for Energy Efficiency and DSM Programs

CHAPTER 4: INTEGRATING THE OPTIONS ON THE SUPPLY AND DEMAND SIDES
A. Fundamentals of Electric Power Planning
B. Least-Cost Planning Criteria
C. Electricity Production Costs
C.1. Utility Revenue Requirements
C.2. Marginal Energy and Capacity Costs
C.3. Capacity Factor and Load Factor
D. Supply System Integration
D.1. Supply Resource Screening
D.2. Dispatch Strategies
D.3. Supply-Side Loss Reduction
D.4. Cogeneration
D.5. Intermittent Renewable Resources
E. Environmental and Social Cost Analysis
E.1. Environmental Impacts of Electricity Production
E.2. Emissions Accounting and Environmental Impacts
E.3. Externality Values
E.4. Costs of Emission Reductions
F. Integrating Energy Demand and Supply
F.1. Defining Scenarios and Baselines
F.2. Combining DSM and Supply Resource Options
F.3. Ranking the Resource Options by Marginal Cost
F.4. Ranking Emission Reduction Measures by Cost of Avoided Emissions
F.5. Including Emission Charges in Marginal Cost Estimates
F.6. Constructing Emission Reduction Cost Curves
F.7. Estimating Impacts on Electricity Rates
F.8. Accounting for Intermittent Supply Resources
G. Exercise on Energy Technical and Economical Efficiency Scenario Comprising the Electricity Demand
Projections for Brakimpur

APPENDIXES
APPENDIX 1. CONVERSION FACTORS
APPENDIX 2. GLOSSARY OF UTILITY PLANNING AND DEMAND-SIDE MANAGEMENT
TERMS
APPENDIX 3. FUNDAMENTALS OF THE ECONOMICS OF ENERGY CONSERVATION
APPENDIX 4. TREATMENT OF TAXES IN UTILITY REVENUE REQUIREMENTS
APPENDIX 5. AREA-SPECIFIC MARGINAL COSTS
APPENDIX 6. ANSWERS TO EXERCISES

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