Capacity Planning

Capacity planning is one of the elements involved in planning generating capacity.  The objective of capacity planning is to develop a system that has the capacity to reliably meet the largest electrical load expected on a particular utility system at any time during the planning period.  The second component is energy planning, which determines the need for energy over a specified period of time to meet forecasted demand.

Capacity planning involves planning for resources to meet not only the projected peak demand but also the additional capability necessary for unforeseen circumstances out of the station's control, known as reserves.  These 'reserves' are used much in the same way countries use their strategic petroleum reserves in times of uncertain crude oil supply.  For example, a drastic change in weather might impose heavy demands on a utility's system, therefore necessitating the use of its reserves.