IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v10y2018i4p933-d137688.html
   My bibliography  Save this article

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
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/10/4/933/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/10/4/933/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Stadler, Michael & Cardoso, Gonçalo & Mashayekh, Salman & Forget, Thibault & DeForest, Nicholas & Agarwal, Ankit & Schönbein, Anna, 2016. "Value streams in microgrids: A literature review," Applied Energy, Elsevier, vol. 162(C), pages 980-989.
    2. Valentine, Scott Victor, 2011. "Emerging symbiosis: Renewable energy and energy security," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(9), pages 4572-4578.
    3. Esteban, Miguel & Portugal-Pereira, Joana, 2014. "Post-disaster resilience of a 100% renewable energy system in Japan," Energy, Elsevier, vol. 68(C), pages 756-764.
    4. de Nooij, Michiel & Koopmans, Carl & Bijvoet, Carlijn, 2007. "The value of supply security: The costs of power interruptions: Economic input for damage reduction and investment in networks," Energy Economics, Elsevier, vol. 29(2), pages 277-295, March.
    5. Adam Smith & Richard Katz, 2013. "US billion-dollar weather and climate disasters: data sources, trends, accuracy and biases," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 67(2), pages 387-410, June.
    6. Bustos, Cristian & Watts, David, 2017. "Novel methodology for microgrids in isolated communities: Electricity cost-coverage trade-off with 3-stage technology mix, dispatch & configuration optimizations," Applied Energy, Elsevier, vol. 195(C), pages 204-221.
    7. Roege, Paul E. & Collier, Zachary A. & Mancillas, James & McDonagh, John A. & Linkov, Igor, 2014. "Metrics for energy resilience," Energy Policy, Elsevier, vol. 72(C), pages 249-256.
    8. Coll-Mayor, Debora & Pardo, Juan & Perez-Donsion, Manuel, 2012. "Methodology based on the value of lost load for evaluating economical losses due to disturbances in the power quality," Energy Policy, Elsevier, vol. 50(C), pages 407-418.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Timothy Fraser & Lily Cunningham & Amos Nasongo, 2021. "Build Back Better? Effects of Crisis on Climate Change Adaptation Through Solar Power in Japan and the United States," Global Environmental Politics, MIT Press, vol. 21(1), pages 54-75, Winter.
    2. Konečná, Eva & Teng, Sin Yong & Máša, Vítězslav, 2020. "New insights into the potential of the gas microturbine in microgrids and industrial applications," Renewable and Sustainable Energy Reviews, Elsevier, vol. 134(C).
    3. Elie Bouri & Joseph El Assad, 2016. "The Lebanese Electricity Woes: An Estimation of the Economical Costs of Power Interruptions," Energies, MDPI, vol. 9(8), pages 1-12, July.
    4. Hirwa, Jusse & Zolan, Alexander & Becker, William & Flamand, Tülay & Newman, Alexandra, 2023. "Optimizing design and dispatch of a resilient renewable energy microgrid for a South African hospital," Applied Energy, Elsevier, vol. 348(C).
    5. Jin, Taeyoung & Lee, Tae Eui & Kim, Dowon, 2023. "Value of lost load estimation for the South Korea's manufacturing sector—finding the gap between the supply and demand side," Renewable and Sustainable Energy Reviews, Elsevier, vol. 187(C).
    6. Ziyi Wang & Zengqiao Chen & Cuiping Ma & Ronald Wennersten & Qie Sun, 2022. "Nationwide Evaluation of Urban Energy System Resilience in China Using a Comprehensive Index Method," Sustainability, MDPI, vol. 14(4), pages 1-36, February.
    7. Zaijing Gong & Dapeng Liang, 2017. "A resilience framework for safety management of fossil fuel power plant," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 89(3), pages 1081-1095, December.
    8. Nahmmacher, Paul & Schmid, Eva & Pahle, Michael & Knopf, Brigitte, 2016. "Strategies against shocks in power systems – An analysis for the case of Europe," Energy Economics, Elsevier, vol. 59(C), pages 455-465.
    9. Molyneaux, Lynette & Brown, Colin & Wagner, Liam & Foster, John, 2016. "Measuring resilience in energy systems: Insights from a range of disciplines," Renewable and Sustainable Energy Reviews, Elsevier, vol. 59(C), pages 1068-1079.
    10. Kim, Kayoung & Cho, Youngsang, 2017. "Estimation of power outage costs in the industrial sector of South Korea," Energy Policy, Elsevier, vol. 101(C), pages 236-245.
    11. Sharifi, Ayyoob & Yamagata, Yoshiki, 2016. "Principles and criteria for assessing urban energy resilience: A literature review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 60(C), pages 1654-1677.
    12. Stadler, Michael & Cardoso, Gonçalo & Mashayekh, Salman & Forget, Thibault & DeForest, Nicholas & Agarwal, Ankit & Schönbein, Anna, 2016. "Value streams in microgrids: A literature review," Applied Energy, Elsevier, vol. 162(C), pages 980-989.
    13. Kim, Kayoung & Nam, Heekoo & Cho, Youngsang, 2015. "Estimation of the inconvenience cost of a rolling blackout in the residential sector: The case of South Korea," Energy Policy, Elsevier, vol. 76(C), pages 76-86.
    14. Soheil Mohseni & Alan C. Brent, 2022. "A Metaheuristic-Based Micro-Grid Sizing Model with Integrated Arbitrage-Aware Multi-Day Battery Dispatching," Sustainability, MDPI, vol. 14(19), pages 1-24, October.
    15. Fankhauser, Samuel & Jotzo, Frank, 2017. "Economic growth and development with low-carbon energy," LSE Research Online Documents on Economics 86850, London School of Economics and Political Science, LSE Library.
    16. Adrian Grimm & Patrik Schönfeldt & Herena Torio & Peter Klement & Benedikt Hanke & Karsten von Maydell & Carsten Agert, 2021. "Deduction of Optimal Control Strategies for a Sector-Coupled District Energy System," Energies, MDPI, vol. 14(21), pages 1-13, November.
    17. Shen, Lijuan & Cassottana, Beatrice & Tang, Loon Ching, 2018. "Statistical trend tests for resilience of power systems," Reliability Engineering and System Safety, Elsevier, vol. 177(C), pages 138-147.
    18. Andoni, Merlinda & Robu, Valentin & Flynn, David & Abram, Simone & Geach, Dale & Jenkins, David & McCallum, Peter & Peacock, Andrew, 2019. "Blockchain technology in the energy sector: A systematic review of challenges and opportunities," Renewable and Sustainable Energy Reviews, Elsevier, vol. 100(C), pages 143-174.
    19. Dong, Kangyin & Dong, Xiucheng & Jiang, Qingzhe & Zhao, Jun, 2021. "Assessing energy resilience and its greenhouse effect: A global perspective," Energy Economics, Elsevier, vol. 104(C).
    20. Carvallo, Juan Pablo & Frick, Natalie Mims & Schwartz, Lisa, 2022. "A review of examples and opportunities to quantify the grid reliability and resilience impacts of energy efficiency," Energy Policy, Elsevier, vol. 169(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:10:y:2018:i:4:p:933-:d:137688. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.