Quantifying and Monetizing Renewable Energy Resiliency

Katherine Anderson, Nicholas Laws, Antonio Jimenez, Xiangkun Li, Dylan Cutler, Spencer Marr, Tria Case, Dag Lohmann, Lars Lisell

Research output: Contribution to journalArticlepeer-review

45 Scopus Citations

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 amethodology to quantify the amount and value of resiliency provided by REHS, and ways to monetize this resiliency value through insurance premium discounts. Acase study of buildings inNewYork City demonstrates howimplementing 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.

Original languageAmerican English
Article number933
Number of pages13
JournalSustainability
Volume10
Issue number4
DOIs
StatePublished - 2018

Bibliographical note

Publisher Copyright:
© 2018 by the authors.

NREL Publication Number

  • NREL/JA-7A40-71143

Keywords

  • Business interruption loss
  • Energy resiliency
  • Energy storage
  • Insurance premiums
  • Monetizing resiliency
  • Renewable energy hybrid systems
  • Solar
  • Value of resiliency

Fingerprint

Dive into the research topics of 'Quantifying and Monetizing Renewable Energy Resiliency'. Together they form a unique fingerprint.

Cite this