Skip to main content

NREL REopt Analysis Demonstrates Economic Value of Solar Plus Storage in Bolstering Grid Resiliency

New York City skyline with Midtown and the Empire State Building lights in the background and the darkened East Village and other parts of downtown in the foreground.

New York skyline with half the city in blackout due to a power failure during Hurricane Sandy. Photo by David Shankbone, Wikimedia Commons

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.

Related Stories

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

NREL fact sheet: Valuing the Resilience Provided by Solar and Battery Energy Storage Systems

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

NREL technical report: New York Solar Smart DG Hub-Resilient Solar Project: Economic and Resiliency Impact of PV and Storage on New York Critical Infrastructure

Sponsors

Department of Energy Solar Energy Technologies Office

Key Partners

BlocPower

City University of New York

Con Edison

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

Contact

Kate Anderson