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Quantifying and Monetizing Renewable Energy Resiliency

Author

Listed:
  • Kate Anderson

    (National Renewable Energy Laboratory, 15013 Denver West Parkway, Golden, CO 80401, USA)

  • Nicholas D. Laws

    (National Renewable Energy Laboratory, 15013 Denver West Parkway, Golden, CO 80401, USA)

  • Spencer Marr

    (Sustainable CUNY, The City University of New York, 205 East 42nd Street, New York, NY 10017, USA)

  • Lars Lisell

    (National Renewable Energy Laboratory, 15013 Denver West Parkway, Golden, CO 80401, USA)

  • Tony Jimenez

    (National Renewable Energy Laboratory, 15013 Denver West Parkway, Golden, CO 80401, USA)

  • Tria Case

    (Sustainable CUNY, The City University of New York, 205 East 42nd Street, New York, NY 10017, USA)

  • Xiangkun Li

    (National Renewable Energy Laboratory, 15013 Denver West Parkway, Golden, CO 80401, USA)

  • Dag Lohmann

    (KatRisk LLC, 2397 Shattuck Ave., Suite 212, Berkeley, CA 94704, USA)

  • Dylan Cutler

    (National Renewable Energy Laboratory, 15013 Denver West Parkway, Golden, CO 80401, USA)

Abstract

Energy resiliency has been thrust to the forefront by recent severe weather events and natural disasters. Billions of dollars are lost each year due to power outages. This article highlights the unique value renewable energy hybrid systems (REHS), comprised of solar, energy storage, and generators, provide in increasing resiliency. We present a methodology to quantify the amount and value of resiliency provided by REHS, and ways to monetize this resiliency value through insurance premium discounts. A case study of buildings in New York City demonstrates how implementing REHS in place of traditional backup diesel generators can double the amount of outage survivability, with an added value of $781,200. For a Superstorm Sandy type event, results indicate that insurance premium reductions could support up to 4% of the capital cost of REHS, and the potential exists to prevent up to $2.5 billion in business interruption losses with increased REHS deployment.

Suggested Citation

  • Kate Anderson & Nicholas D. Laws & Spencer Marr & Lars Lisell & Tony Jimenez & Tria Case & Xiangkun Li & Dag Lohmann & Dylan Cutler, 2018. "Quantifying and Monetizing Renewable Energy Resiliency," Sustainability, MDPI, vol. 10(4), pages 1-13, March.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:4:p:933-:d:137688
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    References listed on IDEAS

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    9. Mohammed Alruwaili & Liana Cipcigan, 2022. "Optimal Annual Operational Cost of a Hybrid Renewable-Based Microgrid to Increase the Power Resilience of a Critical Facility," Energies, MDPI, vol. 15(21), pages 1-23, October.
    10. Scheller, Fabian & Bruckner, Thomas, 2019. "Energy system optimization at the municipal level: An analysis of modeling approaches and challenges," Renewable and Sustainable Energy Reviews, Elsevier, vol. 105(C), pages 444-461.
    11. Bagheri, Mehdi & Delbari, Seyed Hamid & Pakzadmanesh, Mina & Kennedy, Christopher A., 2019. "City-integrated renewable energy design for low-carbon and climate-resilient communities," Applied Energy, Elsevier, vol. 239(C), pages 1212-1225.
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    13. Gert Brunekreeft & Marius Buchmann & Martin Palovic & Anna Pechan, "undated". "Resilience regulation: An incentive scheme for regulated electricity network operators to improve resilience," Bremen Energy Working Papers 0044, Bremen Energy Research.
    14. Gorman, Will & Barbose, Galen & Pablo Carvallo, Juan & Baik, Sunhee & Miller, Chandler & White, Philip & Praprost, Marlena, 2023. "County-level assessment of behind-the-meter solar and storage to mitigate long duration power interruptions for residential customers," Applied Energy, Elsevier, vol. 342(C).
    15. Eichsteller, Marta & Njagi, Tim & Nyukuri, Elvin, 2022. "The role of agriculture in poverty escapes in Kenya – Developing a capabilities approach in the context of climate change," World Development, Elsevier, vol. 149(C).
    16. Bowen Tang & Yuanzhang Sun & Nan Zhou & Bo Shen, 2019. "Sustainable Development of Power Retailers and Industrial Parks in China’s Belt and Road Initiative," Sustainability, MDPI, vol. 11(19), pages 1-19, September.
    17. Hervás-Zaragoza, Josep & Colmenar-Santos, Antonio & Rosales-Asensio, Enrique & Colmenar-Fernández, Lucía, 2022. "Microgrids as a mechanism for improving energy resilience during grid outages: A post COVID-19 case study for hospitals," Renewable Energy, Elsevier, vol. 199(C), pages 308-319.
    18. Harjanne, Atte & Korhonen, Janne M., 2019. "Abandoning the concept of renewable energy," Energy Policy, Elsevier, vol. 127(C), pages 330-340.
    19. Kate Anderson & James Grymes & Alexandra Newman & Adam Warren, 2023. "North Carolina Water Utility Builds Resilience with Distributed Energy Resources," Interfaces, INFORMS, vol. 53(4), pages 247-265, July.
    20. Polzin, Friedemann & Egli, Florian & Steffen, Bjarne & Schmidt, Tobias S., 2019. "How do policies mobilize private finance for renewable energy?—A systematic review with an investor perspective," Applied Energy, Elsevier, vol. 236(C), pages 1249-1268.
    21. Máximo A. Domínguez-Garabitos & Víctor S. Ocaña-Guevara & Félix Santos-García & Adriana Arango-Manrique & Miguel Aybar-Mejía, 2022. "A Methodological Proposal for Implementing Demand-Shifting Strategies in the Wholesale Electricity Market," Energies, MDPI, vol. 15(4), pages 1-28, February.
    22. Sepúlveda-Mora, Sergio B. & Hegedus, Steven, 2022. "Resilience analysis of renewable microgrids for commercial buildings with different usage patterns and weather conditions," Renewable Energy, Elsevier, vol. 192(C), pages 731-744.
    23. Marqusee, Jeffrey & Ericson, Sean & Jenket, Don, 2021. "Impact of emergency diesel generator reliability on microgrids and building-tied systems," Applied Energy, Elsevier, vol. 285(C).
    24. Olivia Francesca B. Agua & Robert Joseph A. Basilio & Mc Erschad D. Pabillan & Michael T. Castro & Philipp Blechinger & Joey D. Ocon, 2020. "Decentralized versus Clustered Microgrids: An Energy Systems Study for Reliable Off-Grid Electrification of Small Islands," Energies, MDPI, vol. 13(17), pages 1-22, August.
    25. Macmillan, Madeline & Zolan, Alexander & Bazilian, Morgan & Villa, Daniel L., 2024. "Microgrid design and multi-year dispatch optimization under climate-informed load and renewable resource uncertainty," Applied Energy, Elsevier, vol. 368(C).

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