Integrated Resource Planning: A Systems Approach to Utility Planning

Publisher:
Cabrera Research Lab
Publication Type:
Journal Article
Citation:
Journal of Systems Thinking, 2023, 3, (3)
Issue Date:
2023-12-12
Full metadata record
This paper introduces integrated resource planning (IRP), a systems approach to utility planning. IRP has been used for decades in the energy and water sectors in several countries. Originating in the 1970s in the US electricity sector, IRP assists utility planners to go beyond historical practices of considering their role in terms of hard infrastructure delivery alone and towards more complex socio-technical system concepts. It emerged in parallel to the development of second wave systems thinking, as described by Midgley, and while not specifically using systems thinking nomenclature, it does apply many of the key tenets, making it inherently a systems approach. The aim of IRP is to help consider how to provide utility “services”, such as energy to a growing city, by not just building more power stations (“hard path” supply-options) but by simultaneously considering increased “end-use” efficiency and the provision of more localised generation such as rooftop solar power (“soft path” demand-side options). The approach continues to evolve as utility planning becomes more complex, needing to deal with increasing levels of uncertainty such as those posed by climate change. A brief history of IRP, and its counterpart least cost planning (LCP), is provided here together with its key principles, an outline of the approach and how it applies systems thinking, even if implicitly. Illustrative case study examples from the Australian water and waste sectors are then provided before discussion on potential future directions.
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