USAID DEC
Integrated Resource Planning – Global Best Practice
Energy shapes every facet of contemporary societies, influencing users and consumers, values and ethics, history and culture, political institutions and dynamics, social movements, international security, justice and equity, policy and regulation, markets and behavior, diversity, workforce, organization and operations.
32 pages
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Abstract
Energy systems are highly interdependent with other systems, necessitating an integrated approach to energy policy and planning. Integrated Resource Planning (IRP) is a global best practice that involves comprehensive planning at the highest jurisdictional level possible, but can also be applied at regional, provincial, or urban scales, or by vertically integrated energy utilities. IRP is valuable for planning energy generation mixes, transmission and distribution networks, and end-use energy consumption technologies. It ensures integration of energy policy objectives with policy objectives in other domains, including economic development, sustainability, and environmental protection. Five key aspects of IRP are multi-criteria policy analysis and design, systems analysis and design, socio-technical systems analysis and design, energy services analysis and design, and energy transitions analysis and design. Multi-criteria energy analysis involves evaluating trade-offs between diverse criteria, including supply availability, demand growth, costs and prices, reliability, resilience, risk and safety, economic development, environment and sustainability, poverty alleviation, energy access, fairness and justice, and international relations. This approach enables energy analysts to consider multiple perspectives and make informed decisions. An example of a vertically integrated utility IRP involves evaluating trade-offs between diverse criteria to design energy systems that meet the needs of various stakeholders. This requires considering factors such as supply availability, demand growth, costs and prices, reliability, resilience, risk and safety, economic development, environment and sustainability, poverty alleviation, energy access, fairness and justice, and international relations. By applying IRP, energy analysts can develop comprehensive plans that balance competing interests and promote sustainable energy development. IRP is essential for ensuring that energy policy objectives are aligned with policy objectives in other domains, including economic development, sustainability, and environmental protection. By considering multiple perspectives and evaluating trade-offs between diverse criteria, IRP enables energy analysts to develop comprehensive plans that promote sustainable energy development and meet the needs of various stakeholders. This approach is critical for addressing the complex challenges associated with energy development and promoting a more sustainable energy future.
