Electric power generators face unprecedented uncertainty in the form of looming regulatory requirements, uncertain demand, renewables mandates, new technologies and fuel price volatility. In the face of this uncertainty, utilities need to develop an optimal asset strategy plan for existing and new electricity sources.

Advanced Analytical Consulting Group’s Strategic Resource Optimization (SRO) framework provides a fully integrated modeling capability to evaluate least-cost capacity expansion, retirements and emission control strategies for meeting energy demand and meeting/exploiting current and emerging emissions limits/markets.

SRO: Examples of Questions Answered

Strategic Tactical
  • Clean coal, gas-fired combined cycle or nuclear for new base-load plants?
  • Should existing large coal-fired units be retrofit with SCRs and scrubbers or converted to burn natural gas?
  • How will state renewable portfolio standards affect other resource choices?
  • Which older, uncontrolled coal units should be retired and when?
  • What price premium is justified for DSM as a hedging strategy?
  • How does the flexibility of mothballing units compare with the savings of retiring them?
  • Can your fleet survive a major Oil Price increase AND tighter SO2 regulations?
  • What new generation will make your fleet profitable under most market conditions?

AACG's SRO Model

Existing simulation approaches focus primarily on chronological dispatch decision-making based on hourly production costs and locational marginal prices. While these models fulfill their intended purpose, they have limited applicability toward higher-level strategic planning issues such as emissions compliance, future technology options, asset retirements and retrofits, and capital planning in an era of unprecedented risks.

The difference between 70 and 65 PPM New 8-Hour ozone limits for the next round of NAAQS amounts to $77 billion dollars in compliance costs.

SRO is a new AACG framework designed from the ground-up to analyze strategic planning issues while considering the future uncertainty affecting every aspect of the power generation business.

Model Capabilities

Our Approach

To learn more, contact our strategic resource optimization team using the links to the right, or email us at info@AACG.com.

Contact Our Experts

Daniel S. Levy, PhD
National Managing Director
617 901 6344
Profile | E-mail

Peter Spinney, MS
Senior Energy Economist
617 320 0039
Profile | E-mail

Karthik Padmanabhan,
MBA, MS

Principal
312 551 9001
Profile | CV | E-mail

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