The utility system impacts us all. For the most part, the energy that allows us to turn our light on and off with a switch is powered from the same resources as our neighbors. We are all impacted by the resources we choose to install.
We also have varying wishes as to how we would like that electricity to be produced. Lower income families want lower cost energy so they can afford to live. Hospitals and businesses want reliable energy to keep their systems running. We need clean energy that is sustainable so future generations can live a better life. Theses are all important goals to consider when choosing energy resources.
The golden triangle
Low cost, reliable, and clean are conflicting. Sometimes the lowest cost does not mean the cleanest. Sometimes the cleanest doesn’t mean the most reliable. Sometimes the most reliable does not mean the lowest cost. Therefore, we need the golden triangle. We need to balance these goals when choosing resources.
Electricity is unique. When we turn on the lights, we don’t directly see how the electricity is being produced. The grid acts as a mask. If we wanted to see how this electricity was made, we would need to go to our utilities website and see what the resource mix looks like at that time. We are far too busy. We don’t have time for that. We also can’t live without it. We need electricity every day to charge our phones, work, and watch Netflix.
Low cost
Making sure our utility bill is low cost might not impact those in the upper middle class as much as it would impact someone from the lower income class. To those in the lower income class, an increase in the utility bill could mean a lot. Therefore, it is important to aim at low cost of producing electricity.
Reliable
We want the light to turn on when we flip the switch. We want our phone to charge when we plug it in. We want the TV to turn on so we can watch Netflix. That is why our electricity resource mix must be reliable. Even for reliability however there are some of us who are more effected than others. Reliable electricity for hospitals can mean life and death. Under extreme weather conditions we need reliable electricity for the elderly and sick to be able to maintain comfortable and necessary temperatures to live.
Clean
We need to ensure our electricity is clean for us and future generations. Producing electricity from coal and other fossil fuels leads to severe environmental and health impacts. Some are more effected than others by the effects of pollution. Those that are closer to coal power plants could be more effected by pollution. As more pollution is emitted, it could also have more severe impacts for future generations. Therefore, clean energy is an important consideration in an energy resource mix.
Conclusion
Whatever your goals may be in an RFP for choosing resources, consider a golden triangle approach to balance the goals of your portfolio. Balancing your portfolio with the golden triangle of low cost, reliable, and clean energy can be easier with a utility RFP software. UtilityRFPi provides RFP software that helps you create a more efficient and effective RFP process so that you can achieve your Golden Triangle balance.
