An integrated resource planning model for utilities with quantified outage costs

Integrated resource planning (IRP) for electric utilities involves management planning of supply as well as demand at the same time. In this paper, we develop a mixed integer linear programming model for IRP. The two key distinctions of this model are the incorporation of the forced outage cost and the inclusion of power deficit/surplus. The forced outage cost will more accurately reflect the true cost to a utility, and the power deficit/surplus features will more accurately represent the existence of power deficit/surplus in utilities nowadays. A comprehensive numerical example is provided for illustrative purposes.