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This text provides updated coverage of key topics involved in integrated resource planning (IRP), also called least-cost planning. IRP in comparison with conventional power can provide the same energy services at a lower societal cost and with reduced environmental impacts. The history and basics of IRP is presented.

Since the mid-seventies, electric utilities were faced with escalating construction costs, growing environmental plus siting constraints and increasing uncertainty in demand forecasting. To cope with the increasing demand for energy services, utilities can either invest in supply-side options (new generation, transmission and distribution facilities) or in demand-side options. Demand-side options include, policies, programmes, innovative pricing schemes and high-efficiency end-use equipment (equipment providing the same or better level of services but using less energy or peak power). Recent...