Full Title: Quantifying and Monetizing Renewable Energy Resiliency
Author(s): Kate Anderson, Nicholas D. Laws, Spencer Marr, Lars Lisell, Tony Jimenez, Tria Case, Xiangkun Li, Dag Lohmann, and Dylan Cutler
Publisher(s): Sustainability
Publication Date: March 1, 2018
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Description (excerpt):
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.