Valuing Energy Security: Customer Damage Function Methodology and Case Studies at DoD Installations
This report describes a methodology to value non-energy savings that can be attributed to energy security projects. The methodology is based on: (1) completing a site survey to collect data on two hypothetical outage scenarios lasting for different durations to compute a customer damage function (CDF), which represents interruption costs as a function of the outage duration; (2) characterizing the reliability of the commercial power supply at the site; and (3) estimating the value of electrical energy security (VEES), which is a metric that characterizes on an annual basis the cost of utility outages. The avoided cost of commercial power outages can be used as ancillary non-energy savings to increase the return on investment of energy security projects.
- Research Organization:
- National Renewable Energy Laboratory (NREL), Golden, CO.
- Sponsoring Organization:
- US Department of Defense
- DOE Contract Number:
- AC36-08GO28308
- OSTI ID:
- 1055367
- Report Number(s):
- NREL/TP-7A30-55913
- Country of Publication:
- United States
- Language:
- English
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