Integrated Energy Planning - Energy and
Power System Planning in Pakistan.
Integrated Energy Planning and Policy (IEP) addresses
sector debt by focusing less on stopgap
measures such as unconditional bailouts, and more on endemic
causes such as system losses and operational inefficiencies. Overwhelming
evidence points to the absence
of coordinated policy as a fundamental issue.
Energy of course is central to
development and the well being of the society.
. IEP has two essential
components: analysis that
feeds the decision-making process
and a policy- level institutional structure to facilitate sound
decision making. IEP addresses short, medium, and long-term issues. The
short-term is vital.
Pakistan has good long-term prospects, but to get there it needs to navigate
the troublesome short term.IEP integrates energy subsector plans and policies to support national objectives. It provides a range of policy scenarios tested for their impact on the economy. Above all, however, effective implementation of IEP requires a separate
energy ministry with
overarching responsibility for the sector and
access to top policy levels
of adding noncommercial/alternative
energy skills to the planning
unit of the Hydrocarbon
Development Institute of Pakistan. Energy planning is
fragmented, this has partly been addressed by formation of energy ministry,
this, however, is in form only as a comprehensive plan has yet to be prepared.
There are ongoing efforts to acquire tools for and revive integrated energy
planning in Pakistan, this is imperative as without a comprehensive energy plan
a optimized development of the energy sector is not possible and decision
making is likely to result in costly mistakes and errors.
The following is
recommended: HDIP needs to be entrusted
the additional responsibility of collecting non commercial energy data, for
which they need to be provided with additional funds and trained manpower;
henceforth energy plans should include non commercial energy; IEP modules be
used for all forms of energy planning, energy sector decisions need to be
verified by running the scenario on IEP models.
An integrated approach to energy sector planning and policy
formulation is recommended. Energy
planning is carried out and policies
formulated largely on an ad hoc, crisis-driven, subsector basis. For instance,
plans for the petroleum, electric power, or coal subsectors, and of other
energy subsectors such as fuel wood and other renewable, are prepared largely
independently of each other. This has
clearly being recognized in Pakistan where, finally, the government has
established the Ministry of Energy Even
more harmful are the distortions introduced by preferential treatment accorded
to commercial forms of energy over non-commercial energy, often with drastic
consequences for the poor and, eventually, for the growth of the economy as a
whole In a nutshell, IEP harmonizes the
policies and plans of the energy sector to meet national socioeconomic objectives,
while ensuring close coordination and consistency between each of the energy
subsectors. It is part and parcel of the overall economic planning process with
which it is closely coordinated.
IEP develops a coherent set of energy policies in key areas
such as: the energy requirements to fuel national growth while meeting
environmental targets; the optimum mix of fuels; conservation measures;
measures to diversify and increase energy security by reducing dependence on
foreign sources; meeting the energy needs of the poor; saving foreign exchange;
reducing the trade deficit; and raising sufficient revenues to finance
continued sector development. Policymakers’ preoccupation with commercial energy as a vehicle for GDP growth and the consequent neglect of non-commercial energy has had a number of serious repercussions.
Integrated
Resource Planning (Power System Planning)
Integrated resource plan is a roadmap that
large utilities use to plan out generational acquisitions over five, 10, or 20
years (or more). Many utilities use integrated resource plans for coal, natural
gas, and smart grid energy. IRPs examine foreseeable future resources with
regard to transmission lines, substations, power plants, end users, and the
utilities and operators responsible for taking care of the transmission and
distribution of electricity.,
The IRP also addresses contributing factors that impact
electricity supply and delivery, ranging from government regulations and
expectations at both federal and state levels, to physical assets such as
transmission lines or coal plants, to customer demand and other drivers. .
Utilities
consider many criteria when creating the IRP. Common questions include:
·
Will the customer base grow?
·
What’s the demand?
·
Do we have enough generation
capability?
·
What will we do in case of emergency,
if a plant goes down, etc.?
Utilities invest a significant amount
of time in putting integrated resource plans together. Depending on the state,
they may create IRPs every other year, yearly, biannually, or even more
frequently. Because of the research that goes into the energy planning process,
IRPs detail how utilities made their
assumptions. Benefits of IRP re so great that frequently regulators/governments
legislate or regulators make these a part of the rules of the game.. For a IRP
process to be deemed successful it must include: a meaningful stakeholders consultations; and
oversight of the process by an agency responsible for utilities. . A successful
IRP effort must include:
-
A load forecast
-
Resources and demand side management
-
Supply options
-
Fuel process
-
Environmental costs and constraints
-
Evaluation of existing resources
-
Integrated analysis
-
Time frame
-
Uncertainty
-
Valuing and selecting plans
-
Action plan
-
And documentation
With
restructuring of the electric industry IRP rules in many areas were ignored,
some areas have since then made an effort to update IRP rules making these a
part of the new industry structure. IRP locates the lowest cost of at which a
utility can deliver reliable energy services to all its customers ISP differs from traditional tools in so far
as it as capable of fairly evaluating and comparing the costs and benefits of
both demand and supply side options. The result is an opportunity to achieve
lower overall costs and maximize benefits of both supply and demand side
options. In particular the inclusion of demand side options presents more possibilities
of saving fuel and reducing negative environmental impacts that might be
possible if only supply side options were considered. IRP results in lower
costs IRP plans have horizon years of 10 -20 years and updates are required
every 2-5 years.
IRPs are important for three reasons:
1.
Utilities are making huge, multimillion-dollar investments in energy. They want
to—and must—do their due diligence to ensure that their investments make sense
and will be profitable. An integrated resource plan helps “prove” the value of
an investment not only to the utility but also local and state governments,
private backers, and the public.
2. An
integrated resource plan provides transparency to consumers. It shows if a
company is investing in green technology, fossil fuels, etc., and gives the
public a way to comment on the strategy.
3. For
interested vendors and companies, an integrated resource plan is an excellent
way to identify relevant partnership opportunities. When an IRP is published,
companies can review it to see what potential projects will be coming their
way, identify projects they might like to become involved with, and more.
Conclusions
Traditional
planning suffered from the drawback that it was not comprehensive and did not
include all aspects of the issues. With market liberalization it was (falsely)
deemed that there is no need for any planning at the State of government level,
the market would provide indicators and would drive investment accordingly.
This was very soon proven incorrect. States, Regulators, Governments then
mandated the preparation of short, medium and long term plans. The Integrated
Energy and power planning resulted in better coordination. The integrated
planning approach encompassed both supply and demand side issues and developed
the interdependence of various factors on other factors. Errors made by
decision making in the isolated mode are avoided.This coordination results in
avoidance of error made when decisions are taken in an isolated mode.
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