An Integrated Resource Plan, also known as an IRP, is a roadmap and planning tool utilities use to assess and address future energy needs. Put simply, the IRP process takes into account estimates of customers’ future electricity needs over the next 20 years and the least cost resources available to serve those needs.
“The Integrated Resource Planning (IRP) process is a powerful tool for ensuring that Louisiana energy consumers receive affordable and reliable electricity service that does not compromise the health of their communities or the environment,” said Logan Burke, AAE’s Executive Director. “A utility’s IRP will be the basis for all their major power generation and energy efficiency investment decisions.”
During the IRP process a utility will model different resources to determine the mix of demand-side (such as energy efficiency, weatherization, energy storage) and supply-side (such as the construction of a fossil fuel-fired generating plant or solar farm) technologies that it will use to economically and efficiently meet its user demand. The IRP process encompasses all aspects of the utility planning process, from generation to transmission and distribution.
Regulators must ensure that a utility’s modeling of the energy future reflects real-world conditions.
