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Title: Quantifying and Monetizing Renewable Energy Resiliency

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.
Authors:
 [1] ;  [1] ;  [2] ;  [1] ;  [1] ;  [2] ;  [1] ;  [3] ;  [1]
  1. National Renewable Energy Lab. (NREL), Golden, CO (United States)
  2. City Univ. (CUNY), NY (United States). Sustainable CUNY
  3. KatRisk LLC, Berkeley, CA (United States)
Publication Date:
Report Number(s):
NREL/JA-7A40-71143
Journal ID: ISSN 2071-1050; SUSTDE
Grant/Contract Number:
AC36-08GO28308
Type:
Accepted Manuscript
Journal Name:
Sustainability (Basel)
Additional Journal Information:
Journal Name: Sustainability (Basel); Journal Volume: 10; Journal Issue: 4; Journal ID: ISSN 2071-1050
Publisher:
MDPI
Research Org:
National Renewable Energy Lab. (NREL), Golden, CO (United States)
Sponsoring Org:
USDOE Office of Energy Efficiency and Renewable Energy (EERE); NREL Laboratory Directed Research and Development (LDRD)
Country of Publication:
United States
Language:
English
Subject:
29 ENERGY PLANNING, POLICY, AND ECONOMY; 25 ENERGY STORAGE; 14 SOLAR ENERGY; energy resiliency; renewable energy hybrid systems; solar; energy storage; value of resiliency; monetizing resiliency; insurance premiums; business interruption loss
OSTI Identifier:
1430655