Valuing Resilience Benefits of Microgrids for an Interconnected Island Distribution System
Extreme climate-driven events such as hurricanes, floods, and wildfires are becoming more intense in areas exposed to these threats, requiring approaches to improve the resilience of the electrical infrastructure serving these communities. Long-duration outages caused by such high impact events propagate to economic, health, and social consequences for communities. As essential service providers, electric utilities are mandated to provide safe, economical and reliable electricity to their customers. The public is becoming less tolerant to these more frequent disruptions, especially in view of technological advances that are intended to improve power quality, reliability and resilience. One promising solution is state-of-the-art microgrids and the advanced controls employed therein. This paper presents and demonstrates an approach to technoeconomic analysis that can be used to value the avoided economic consequences of grid resilience investments, as applied to the islands of Vieques and Culebra in Puerto Rico. This valuation methodology can support policies to incorporate resilience value into any investment decision-making process, especially those which serve the public interest.