Integrated Resource Planning: From theory to practice

Panel: Panel 1: Policy and Programmes - Who can deliver DSM?

Authors:
Kaare Sandholt, ELKRAFT
Gert Nielsen, NESA

Abstract

In Denmark the electric utilities have developed tools and methods for Integrated Resource Planning (IRP) adapted to Danish conditions. At the same time the Danish parliament have passed an act which directs the electric utilittes to apply IRP.

Presently IRP is being implemented in the Danish electric utilities: The authorities have published official guidelines for elaboration of IRP plans and the east Danish utilities have ensured that the organization and procedures related to the planning work are adapted to the new method of planning. The IRP process will be implemented in three stages. At the first stage, the planning work on the demand side is carried out parallel with the planning work on the supply side. An example of DSM planning methods is illustrated in the paper. At the second stage, the planning is translated into an interactive process including an optimalization of the system as a whole. On the basis of balancing the contribution from the supply and the demand side, the fmal IRP .

Planning products are elaborated in the third stage: DSM plans for the individual distribution companies, plans for production and transmission as well as an overall IRP plan for 1995. A conflict may arise between IRP, fulfilment of the environmental objectives adopted by the Danish parliament and introduction of an EU electricity market characterized by competition. However, the following objective may be within reach:

Meeting the consumers? demand for energy services at the lowest possible costs within the politically determined framework of society.

Whether or not the IRP planning in Denmark will be a success is very difficult to predict at the time being. Much depends on the collaboration between power companies, the authorities and politicians concerning this planning, which is new to ?ll parties. It is of decisive importance that the main parties in the IRP planning find it an advantage to participate, otherwise the planning will not be realised.

In Denmark IRP is by law the plarming method for the electricity sector. How is this new process implemented in practice?