NREL REopt Analysis Demonstrates Economic Value of Solar Plus Storage in Bolstering Grid Resiliency
NREL conducted a REopt™ analysis to assist New York City (NYC) in evaluating the technical and economic viability of installing solar energy and battery storage at critical infrastructure sites. This analysis places a monetary value on resiliency (equal to the cost of grid interruptions) and thus, in essence, models a new revenue stream for the avoided cost of a power outage.
NREL used the REopt modeling platform to optimally select and size resilient power options for the sites in the study, including revenue streams associated with displacing energy purchases from the grid, reducing peak demand charges, shifting grid-purchased energy from high to low time-of-use cost periods, and avoiding the cost of grid interruptions.
Analysis results showed that solar plus storage can be economically viable for NYC’s critical infrastructure and may be similarly beneficial to other commercial buildings across the city. This analysis is being used by managers of city buildings, private building owners and managers, the solar plus storage industry, and policymakers to better understand the economic and resiliency benefits of solar plus storage.
Renewable Energy journal article: Impacts of Valuing Resilience on Cost-Optimal PV and Storage Systems for Commercial Buildings
Sustainability journal article: Quantifying and Monetizing Renewable Energy Resiliency
City University of New York report: Grid Ready: Strategies for Connecting Large-Scale PV in New York City
Journal of Energy Management article: Increasing Resiliency Through Renewable Energy Microgrids
Clean Energy Group blog post: Solar+Storage Makes Economic Sense for New York City’s Critical Infrastructure
Department of Energy Solar Energy Technologies Office
City University of New York
DG Hub Software Working Group
Fire Department of New York
Meister Consultants Group
New York City Department of Citywide Administrative Services
New York City Emergency Management
New York City Housing Authority
New York Department of Education
New York Power Authority