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Title: Impacts of valuing resilience on cost-optimal PV and storage systems for commercial buildings

Abstract

Decreasing electric grid reliability in the US, along with increasing severe weather events, have greatly increased interest in resilient energy systems. Few studies have included the value of resilience when sizing PV and Battery Energy Storage Systems (BESS), and none have included the cost to island a PV and BESS, grid-connected costs and benefits, and the value of resilience. This work presents a novel method for incorporating the value of resilience provided by a PV and BESS into a techno-economic optimization model. Including the value of resilience in the design of a cost-optimal PV and BESS generally increases the system capacities, and in some cases makes a system economical where it was not before. For example, for a large hotel in Anaheim, CA no system is economical without resilience valued; however, with a $5317/hr value of resilience a 363 kW and 60 kWh solar and BESS provides a net present value of $50,000. Lastly, we discuss the effect of the 'islandable premium', which must be balanced against the benefits from serving critical loads during outages. Case studies show that the islandable premium can vary widely, which highlights the necessity for case-by-case solutions in a rapidly developing market.

Authors:
; ; ORCiD logo; ;
Publication Date:
Research Org.:
National Renewable Energy Lab. (NREL), Golden, CO (United States)
Sponsoring Org.:
USDOE Office of Energy Efficiency and Renewable Energy (EERE), Solar Energy Technologies Office (EE-4S)
OSTI Identifier:
1440739
Report Number(s):
NREL/JA-7A40-70420
Journal ID: ISSN 0960-1481
DOE Contract Number:  
AC36-08GO28308
Resource Type:
Journal Article
Resource Relation:
Journal Name: Renewable Energy; Journal Volume: 127; Journal Issue: C
Country of Publication:
United States
Language:
English
Subject:
14 SOLAR ENERGY; 29 ENERGY PLANNING, POLICY, AND ECONOMY; resilience; renewable energy; energy storage; microgrid; value of lost load

Citation Formats

Laws, Nicholas D., Anderson, Kate, DiOrio, Nicholas A., Li, Xiangkun, and McLaren, Joyce. Impacts of valuing resilience on cost-optimal PV and storage systems for commercial buildings. United States: N. p., 2018. Web. doi:10.1016/j.renene.2018.05.011.
Laws, Nicholas D., Anderson, Kate, DiOrio, Nicholas A., Li, Xiangkun, & McLaren, Joyce. Impacts of valuing resilience on cost-optimal PV and storage systems for commercial buildings. United States. doi:10.1016/j.renene.2018.05.011.
Laws, Nicholas D., Anderson, Kate, DiOrio, Nicholas A., Li, Xiangkun, and McLaren, Joyce. Thu . "Impacts of valuing resilience on cost-optimal PV and storage systems for commercial buildings". United States. doi:10.1016/j.renene.2018.05.011.
@article{osti_1440739,
title = {Impacts of valuing resilience on cost-optimal PV and storage systems for commercial buildings},
author = {Laws, Nicholas D. and Anderson, Kate and DiOrio, Nicholas A. and Li, Xiangkun and McLaren, Joyce},
abstractNote = {Decreasing electric grid reliability in the US, along with increasing severe weather events, have greatly increased interest in resilient energy systems. Few studies have included the value of resilience when sizing PV and Battery Energy Storage Systems (BESS), and none have included the cost to island a PV and BESS, grid-connected costs and benefits, and the value of resilience. This work presents a novel method for incorporating the value of resilience provided by a PV and BESS into a techno-economic optimization model. Including the value of resilience in the design of a cost-optimal PV and BESS generally increases the system capacities, and in some cases makes a system economical where it was not before. For example, for a large hotel in Anaheim, CA no system is economical without resilience valued; however, with a $5317/hr value of resilience a 363 kW and 60 kWh solar and BESS provides a net present value of $50,000. Lastly, we discuss the effect of the 'islandable premium', which must be balanced against the benefits from serving critical loads during outages. Case studies show that the islandable premium can vary widely, which highlights the necessity for case-by-case solutions in a rapidly developing market.},
doi = {10.1016/j.renene.2018.05.011},
journal = {Renewable Energy},
number = C,
volume = 127,
place = {United States},
year = {Thu Nov 01 00:00:00 EDT 2018},
month = {Thu Nov 01 00:00:00 EDT 2018}
}