Basic Theory of Integrated Resource Strategic Planning

With the increasing threat of global climate change and growing calls for environmental protection, power utilities consider both supply-side and demand-side resources in developing generator expansion planning. Moreover, integrated resource planning (IRP) theory has been rapidly developed and demand-side management (DSM) has been vigorously advanced. Reforms of the electric power system have divided power utilities into power generation enterprises and power distribution enterprises, each of which have lost the functions of unified planning and operation of generation, transmission, distribution, and utilization and are incapable of performing IRP; therefore, DSM has lost its theoretical basis. Although IRP is forcibly separated from DSM by the separation of power generation and distribution, the government can still perform macro-control of power generation resources and demand-side resources. Integrated resource strategic planning (IRSP) thus can play an important role in national strategy and become the theoretical basis of DSM in the new period. This chapter introduces theoretical knowledge and practical experiences, such as IRP, Integrated resource strategic planning (IRSP), DSM and Efficiency Power Plant, and also presents the application of the IRSP model.