Article: LCP/IRP strategy development using an optimising energy-emission model Journal: International Journal of Environment and Pollution (IJEP) 1999 Vol.12 No.2/3 pp.251-263 Abstract: This paper proposes an energy-emission modelling approach for the development of least-cost planning and integrated resource planning strategies for electric utilities, and presents results of the model application to the municipal electric utilities of Karlsruhe and Rottweil. The LCP/IRP strategy employed is based on the regulatory practice in Germany, also with regard to liberalisation issues. Furthermore, emphasis is given to the adequate modelling of demand-side management (DSM) programmes, including their effects on electricity generation, capacity expansion and electricity purchase. The results show that selected DSM programmes in the household sector lead to a cost-effective reduction of electricity demand. When ecological considerations, such as a reduction of carbon dioxide emissions, are included, the cost of electricity generation increases, as does the potential for DSM savings. However, when a revenue-based approach is used, it is evident that extrinsic economic incentives for DSM need to be given by, for example, regulatory authorities. Inderscience Publishers - linking academia, business and industry through research

Title: LCP/IRP strategy development using an optimising energy-emission model

Authors: Martin Dreher, Holger Schoettle, Martin Wietschel, Wolf Fichtner, Otto Rentz

Addresses: Institute for Industrial Production (IIP), University of Karlsruhe, Hertzstr. 16, 76187 Karlsruhe, Germany. Institute for Industrial Production (IIP), University of Karlsruhe, Hertzstr. 16, 76187 Karlsruhe, Germany. Institute for Industrial Production (IIP), University of Karlsruhe, Hertzstr. 16, 76187 Karlsruhe, Germany. Institute for Industrial Production (IIP), University of Karlsruhe, Hertzstr. 16, 76187 Karlsruhe, Germany. Institute for Industrial Production (IIP), University of Karlsruhe, Hertzstr. 16, 76187 Karlsruhe, Germany

Abstract: This paper proposes an energy-emission modelling approach for the development of least-cost planning and integrated resource planning strategies for electric utilities, and presents results of the model application to the municipal electric utilities of Karlsruhe and Rottweil. The LCP/IRP strategy employed is based on the regulatory practice in Germany, also with regard to liberalisation issues. Furthermore, emphasis is given to the adequate modelling of demand-side management (DSM) programmes, including their effects on electricity generation, capacity expansion and electricity purchase. The results show that selected DSM programmes in the household sector lead to a cost-effective reduction of electricity demand. When ecological considerations, such as a reduction of carbon dioxide emissions, are included, the cost of electricity generation increases, as does the potential for DSM savings. However, when a revenue-based approach is used, it is evident that extrinsic economic incentives for DSM need to be given by, for example, regulatory authorities.

Keywords: demand-side management; electric utilities; energy-emission model; incentive regulation; least-cost planning.

DOI: 10.1504/IJEP.1999.002295

International Journal of Environment and Pollution, 1999 Vol.12 No.2/3, pp.251-263

Published online: 15 Aug 2003 *

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Title: LCP/IRP strategy development using an optimising energy-emission model

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