III - Industries [Energy/Utilities]

Industries

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Energy/Utilities

Non-Utility Generation (NUG) plays a major role in the way electrical energy is currently being produced and marketed. The current trend recently saw power utilities relying on energy being purchased from Independent Power Producers (IPPs). Due to the need for demand satisfying, IPPs serve a significant portion in the power capacity and generation market. Thus, there is a need for mutual co-operation between electric utilities and IPPs, with thorough consideration of economic issues. The contention arises on the price that a utility has to pay to an IPP for the energy it receives on a short-term basis. This is because existing utility generation schedules are modified or adjusted to accommodate the incoming energy, and such accommodations may not lead to optimum system operation. At III, we can assist in the development of an action plan which incorporates IPP energy in the utility’s short-term scheduling in an optimal manner.