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Value of Resiliency
Has anyone come across a standardization of methodology for valuation of resiliency, i.e. the economics of 'not experiencing an outage'? A literature review indicates this is an area that the market and potential customers are still weak on including in their decision making analysis.
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I am currently studying this issue through the lens of grid flexibility and variable renewable energy integration (http://www.wcpec7.org/eWCPEC/mobile/show_presentation.php?abstractno=980)
I agree there is uncertainty in the literature. A few sources you may want to examine:
Economic Carrying Capacity: https://www.nrel.gov/docs/fy15osti/62607.pdf
GIVAR III Flexibility Scoring Framework: https://www.nrel.gov/docs/fy14osti/61721.pdf
California Public Utilities Commission Valuation Framework:
RETI 2.0 Plenary Group,Final Plenary Report, February 23, 2017: http://docketpublic.energy.ca.gov/PublicDocuments/15-RETI-02/TN216198_20170223T095548_RETI_20_Final_Plenary_Report.pdf
Feel free to contact me if you would like to discuss.
Best,
Michael
mg3217@columbia.edu
203-967-4501
We use Sustainable Return on Investment (S-ROI) for this type of calculation because there are often multiple stakeholders affected by resiliency and they each have a different return. You can see more at https://www.earthshiftglobal.com/consultingservices/start-sustainability-return-on-investment-roi-engagement.
The previous comments highlight that there is no standardized methodology for valuation of resiliency. There are also no standard metrics related data available.
You might want to look at the Resilient Cities Programme from the Rockefeller Foundation. They have a methodology to assess and develop resiliency in terms of cities. Read more at
https://www.100resilientcities.org/
Another interesting angle is the property sector. Though this report is dated (2014), it may offer some insights.
http://www.grosvenor.com/getattachment/194bb2f9-d778-4701-a0ed-5cb451044ab1/ResilientCitiesResearchReport.pdf