Quantifying the impacts of renewable portfolio standards (RPS) on utility integrated resource plans (IRP) sounds straight forward—just add more wind, solar, hydro, biomass, etc., to the plan and...
Clearing the Air On Emissions
How utilities can take a portfolio-management approach to environmental compliance.
strategy development diffuse to other parts of the EPM framework?
Integrating emissions into the core of corporate strategy requires overcoming two information challenges within the organization. The first is to establish effective communication with respect to emissions among trading, planning, auditing, and risk-management functions in the organization. The second is to employ a corporate-wide process that will allow sharing of data and analytical insight at every level of the organization. This means that data and forecasts can be seamlessly shared at all levels, from the development of strategy to the trading floor and short-term generation fleet commitment and dispatch.
In this market, only those companies able to align their business units around a consistent strategy, common analytics, and a fully integrated data framework will be positioned to succeed. By improving the consistency of results, decisive action can be taken, where well-structured information and analysis can turn strategy into results. Those companies implementing a corporate-wide framework for portfolio decisions will have the advantage because they will be able to use real-time information to make more informed decisions. This will allow them to adapt to market changes, predict future trends, and forecast what is needed from an internal operational standpoint.
Progressive utilities have achieved this by proactively involving all levels of the company in a dialogue that serves to define key drivers at every level that are subsequently worked into both strategy and practice that allows them to "walk the talk."