Nuances of valuing resilience from microgrids

Abstract

As an independent power source that can disconnect from the main grid during a power outage, microgrids continue to gain global popularity due to multiple benefits, including decarbonization and resilience. Nevertheless, their cost – compared to the conventional utility-scale grid – has limited their competitiveness and deployment. Finding ways to value the resilience microgrids provide during outages has become a key challenge for the sector and for advocates and developers hoping to justify the expense of investing in microgrids to public utility commissions. To understand and compare the various approaches being used to value resiliency from microgrids, this study conducted and analyzed 32 interviews with industry experts including companies, advocacy groups, national labs, non-elected officials, research institutions, and utilities working on grid resilience and on resilience valuation tools. A newly designed Timeline, Objective, Organization, Limitations, Services (TOOLS) framework is utilized to describe three selected resilience valuation metrics: Interruption Cost Estimate (ICE), Power Outage Economic Tool (POET) and Resilience Node Cluster Analysis Tool (ReNCAT). While these valuation tools provide important context, experts stressed that the definition of resilience is unique to every community. Valuing resilience is complex and current methods do not fully include difficult-to-quantify factors like equity or spillover economic effects of outages. Combining ongoing resilience valuation efforts can provide useful outcomes.