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The Hidden Biases in Utility Resource Modeling That Stack the Deck Against Clean Energy
['Contributed Content']
POWER Magazine
Investors are increasingly scrutinizing the underlying assumptions that underpin utility resource plans, connecting the dots between resource planning, shareholder value creation, and emissions trajectories.
When clean energy costs are overstated or gas plant costs are understated, models can produce skewed analysis.
And that can result in tilting away from a clean energy build that would best serve reliability, affordability, and shareholder value creation.
Utilities often use other modelling practices in their integrated resource plans that can significantly bias their analysis against clean energy.
Companies can also apply bias against clean energy resources by modeling pessimistically low energy output assumptions, expressed as capacity factors.