Pace Global

Risk Integrated Resource Planning Process

Clien Need
Client Need:
A mid-size investor-owned utility required strategic support during its resource planning process, with specific focus on an environmental retrofit decision for a coal plant.


Our Role
Our Role:
Pace Global developed a risk integrated planning framework to support an electric utility client in its evaluation of resource decisions.  In close collaboration with our client, we identified key planning objectives and worked to quantify the major market and regulatory uncertainties affecting the client’s generation portfolio.  Using our power market planning and dispatch tools, Pace Global developed alternative portfolios for consideration and subjected the alternatives to rigorous uncertainty analysis around fuel prices, energy demand, capital costs for new units, and environmental policy outcomes.  Portfolio options included new builds in the form of wind, solar, hydro, natural gas, or nuclear capacity, contract PPAs for power, as well as retirement alternatives for coal plants.  Specific retrofit options were evaluated for a coal plant in the context of the wider set of portfolio choices.  Planning decisions were then evaluated under key metrics for utility costs, risk, and environmental stewardship.


Results
Results:
The client was able to enhance their resource planning process, make more confident decisions, and achieve the objectives of multiple stakeholders through the integration of risk-based metrics. 

Pace Global