Electric utility resource planning : economics, reliability, and decision-making / Steven Sim.

Format:

Book

Author/Creator:

Sim, Steven, 1982- author.

Language:

English

Subjects (All):

Electric power production.

Electric power distribution.

Electric utilities.

Physical Description:

1 online resource (430 pages)

Edition:

Second edition.

Place of Publication:

Boca Raton, FL : CRC Press, Taylor & Francis Group, LLC, [2024]

Summary:

With this 2nd edition, author Dr. Steven Sim again applies the experience and insights he gained from more than 30 years of resource planning for Florida Power & Light (FPL). As one of the largest electric utilities in the U.S., FPL has faced a multitude of resource planning challenges, including how to get to zero carbon.

Contents:

Cover

Half Title

Title Page

Copyright Page

Contents

Acknowledgments

Author

Part I: The Fundamentals of Electric Utility Resource Planning

Chapter 1: Introduction

Why Write this Book?

Who is this Book Written For?

An Overview of the Book's First Edition (i.e., Part I of this Book)

An Overview of the Book's Second Edition (i.e., Part II of this Book)

Are We Keeping it Simple?

A Few Words Regarding Assumptions Used in the Book

A Couple of Disclaimers

Chapter 2: How Does an Electric Utility Actually "Work"?

Two "Types" of Electric Utilities

Whose Perspective Will Be Taken?

What Aspects of an Electric Utility Will we Focus on?

Types of Generating Units a Utility May Have

How Does a Utility Decide which Generating Units to Use?

Let's Create a Hypothetical Utility System

Now Let's Operate our Hypothetical Utility System

Utility System Operation on the Summer Peak Day

Utility System Operation Over the Course of a Year

So What Have We Learned and Where Do We Go Next?

Chapter 3: Overview of Utility Resource Planning

One More Assumption Regarding Our Hypothetical Utility System

Three Questions Utility Resource Planning Must Always Answer

Reliability Analysis: When Does a Utility Need to Add New Resources and What is the Magnitude of Those Needed Resources?

Reserve Margin Perspective (Simple to Calculate)

Probabilistic Perspective (Not so Simple to Calculate)

Which Reliability Perspective is More Important?

Resource Option Evaluation and Selection: What is the Best Resource Option to Select for a Given Utility?

Two Basic Types of Resource Options: Supply and Demand Side Management Options

Integrated Resource Planning (IRP)

Economic Evaluations

Preliminary Economic Screening Evaluation of Supply Options.

Preliminary Economic Screening Evaluation of DSM Options

Final (or System) Economic Evaluations

Non-Economic Evaluations

Non-Economic Consideration Example (I): The Length of Time it Takes Before a Resource Plan Becomes the Economic Choice

Non-Economic Consideration Example (II): The Utility System's Fuel Usage due to a Resource Plan

Non-Economic Consideration Example (III): The Utility System's Air Emissions due to a Resource Plan

Chapter 4: Reliability Analyses for Our Utility System

When Does Our Utility System Need New Resources?

What is the Magnitude of the New Resources Needed by Our Utility System?

What have We Learned and What is Next?

Chapter 5: Resource Option Analyses for Our Utility System: Supply Options

Types of Supply Options Under Consideration

Capital Costs: Rows (1) Through (3)

Other Fixed Costs: Rows (4) Through (7)

Operating Costs: Rows (8) Through (16)

Preliminary Economic Screening Evaluation of the Supply Options

Creating the Competing "Supply Only" Resource Plans

Final (or System) Economic Evaluation of Supply Options

Overview

Total Cost Perspective (CPVRR) for the Supply only Resource Plans

Electric Rate Perspective (Levelized System Average Electric Rate) for the Supply only Resource Plans

Chapter 6: Resource Option Analyses for Our Utility System: DSM Options

Types of DSM Resource Options Under Consideration

Preliminary Economic Screening Evaluation of DSM Options: Understanding the Cost-Effectiveness Screening Tests

Preliminary Economic Screening Analyses of DSM Options: Results

Creating the Competing "With DSM" Resource Plans

Final (or System) Economic Analysis of DSM Options

Results for the with DSM Resource Plan 1

Results for the with DSM Resource Plan 2

Chapter 7: Final Resource Option Analyses for Our Utility System.

Economic Comparison of the Resource Plans

Non-Economic Analyses of the Resource Plans

"Cross-Over" Time to Being the Most Economic Resource Plan

System Fuel Use

System Air Emissions

Summary of Results from the Resource Option Analyses for Our Utility System

Chapter 8: Are We Done Yet? Other Factors that Can (and Will) Complicate Resource Planning Analyses

Constraints on Solutions: Six Examples

Examples of "Absolute" Constraints

Siting/Geographic Constraints

Potential Tightening of Environmental Regulations

Examples of Legislative/Regulatory-Imposed Constraints

"Standards" / (Quotas) for Specific Types of Resource Options

Prohibition of Specific Resource Options

Examples of Utility-Imposed Constraints

System Reliability Constraints

The Voluntary Nature of DSM Options

Load Shape Constraint

What are the Impacts of Addressing these Constraints?

Part II: Moving toward Zero Carbon

Chapter 9: An Overview of Part II

Introduction

A Different Approach is Taken in Part II

How Part II is Structured

Chapter 10: Moving toward Zero Carbon: How Many MW of New Resources Will be Needed?

The First Estimation Approach

The Second Estimation Approach

How Accurate do We Believe the Second Estimation Approach Is?

A "What If" Analysis: How Many Additional New Resource MW Would be Needed if Our Utility's Nuclear Capability Was Not Available?

Summary: Key Takeaways Regarding the Magnitude of New Resource MW Needed to Reach a Zero-Carbon Goal

Chapter 11: Moving toward Zero Carbon: Resource Planning Considerations for Solar (PV) Resources

Solar Installed Costs (/kW): 2009-2022

Tax Credits for PV from the 2022 Inflation Reduction Act (IRA)

Impacts of PTC Over the 25-Year Analysis Period.

What Do We Conclude from this Discussion of the 2022 IRA's PTC Impact on Solar Resource Options?

A More Complete Look at the Firm Capacity Value Aspect of Solar

Firm Capacity Value of PV at Our Utility's Winter Peak Hour

Summer Firm Capacity Values as Increasing Amounts of PV are Added in the Future

How Serious are the Challenges that Utility Resource Planners will Face from These Two PV Firm Capacity Value Characteristics?

System Reliability Analysis During the Transition Period

Summary: Key Takeaways for Resource Planning Regarding PV Resources

Chapter 12: Moving toward Zero Carbon: Resource Planning Considerations for Battery Storage Resources

A Representative Projection of Battery Storage Installed Costs ( Per kW): 2023-2030

Tax Credits from the 2022 Inflation Reduction Act (IRA)

A Graphical Look at the Firm Capacity Value Aspect of Battery Storage

A Better Method to Determine the Needed Duration of Battery Storage Options

The Relationship between the Needed Duration of Battery Storage Options and the Cost of Batteries

A Brief Look at Battery-and-PV Combinations in Regard to System Reliability

Summary: Key Takeaways for Resource Planning Regarding Battery Storage Resources

Chapter 13: Moving to Zero Carbon: Ramifications for System Operations and Transmission Planning

Solar Curtailment

Operation of Existing Conventional Generation with Ever-Increasing Amounts of PV

Inverter-Based Resources (IBRs) and System Stability

Summary: Key Takeaways Regarding System Operations, Transmission Planning, and Resource Planning

Chapter 14: Final Thoughts (Including Some Opinions)

A Quick Look Back

Summary of the Key Points We Have Learned about Utility Systems in General

Summary of the Key Lessons We Have Learned Regarding Utility Resource Planning.

Summary of the Key Lessons We Have Learned Regarding Moving Toward Zero Carbon

A Few Opinions on Various Topics

What Lies ahead for Electric Utilities and Utility Resource Planning?

Closing Thoughts

Appendix A: Fundamental Principles of Electric Utility Resource Planning

Appendix B: Glossary of Terms

Appendix C: Mini-Lesson #1: Concepts of Revenue Requirements, Present Valuing of Costs and Discount Rates, Cumulative Present Value of Revenue Requirements, and Levelized Costs

Appendix D: Mini-Lesson #2: Further Discussion of the Limitations of a Screening Curve Analytic Approach

Appendix E: Mini-Lesson #3: Further Discussion of the RIM and TRC Preliminary Cost-Effectiveness Screening Tests for DSM

Appendix F: Mini-Lesson #4: How Can a Resource Option Result in Lower Costs but Increase Electric Rates?

Appendix G: Mini-Lesson #5: How Can a Resource Option That Produces Emissions Result in Low Utility Total System Emissions? ("The Taxi Cab Example")

Index.

Notes:

Includes index.

Description based on print version record.

Description based on publisher supplied metadata and other sources.

Other Format:

Print version: Sim, Steven Electric Utility Resource Planning

ISBN:

1-000-95953-8

OCLC:

1410916665