Quantifying and Monetizing Renewable Energy Resiliency

Kate Anderson, Nicholas D. Laws, Spencer Marr, Lars Lisell, Tony Jimenez, Tria Case, Xiangkun Li, Dag Lohmann and Dylan Cutler
Additional contact information
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

Sustainability, 2018, vol. 10, issue 4, 1-13

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.

Keywords: energy resiliency; renewable energy hybrid systems; solar; energy storage; value of resiliency; monetizing resiliency; insurance premiums; business interruption loss (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (26)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:10:y:2018:i:4:p:933-:d:137688

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