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Home » Projects » Energy Storage Trends » Resilient Power

RESILIENT POWER: PROVIDING PROTECTION IN STORMS AND OUTAGES

“I went to church, and I’m not a church person. I sat there and said, ‘Please bring the power back.’” Manuel Laboy Rivera, Secretary of Puerto Rico’s Department of Economic Development¹

“The lack of power is the root of everything.” Miriam Gonzalez, the owner of a restaurant in San Juan²

Battery storage is increasingly an option for meeting power needs after disasters, like the unprecedented number this country has faced this past year. With power outages on the rise, the status quo energy systems have failed too often, resulting in death, damage, and prolonged suffering. Better technology solutions such as solar+storage are now viable alternatives to protect people from the dangers of power outages before, during, and after the next storm.

Issues

The U.S. electric grid is aging. At the same time, it’s becoming more complex.  And extreme weather events, ranging from hurricanes to ice storms to flooding, are becoming both more frequent and more damaging to the grid.

No wonder, then, that power outages are increasing in frequency and severity. And, as more of our society becomes electrified—from electric-powered heat pumps and geothermal systems, to electric vehicles—the impacts of grid outages become even more severe.

According to the best available data from the Executive Office of the President, 679 power outages, each affecting at least 50,000 customers, occurred due to weather events between 2003 and 2012; and these events cost the U.S. economy an estimated $18 billion to $33 billion annually, in addition to damaging key transportation and medical infrastructure that are essential services for much of the nation’s population (3).

This accounts only for weather-related outages—it doesn’t include outages due to non-weather events, which can include fires, earthquakes, falling tree branches, software errors, equipment failures, human error, terrorist and cyberattacks, and animals interfering with grid equipment (squirrels alone account for hundreds of outages per year) (4).

Of course, power outages are most harmful when they occur during a disaster, because they both contribute to the disaster and hinder efforts to provide emergency services when they are most needed. The recent hurricanes in Florida, Texas, and Puerto Rico exposed the vulnerabilities of the electric grid and sparked a nationwide discussion about the implications of power outages for public health and safety.

The disaster in Puerto Rico due to Hurricane Maria is now the largest and longest blackout in American history (5). A month after Hurricane Maria made landfall in Puerto Rico, the majority of the island’s 3.5 million residents still did not have access to power (6).

The hurricane also crippled the island’s $15 billion-dollar pharmaceutical industry, which supplies 10 percent of the United States’ total medicinal production (7). The storm damaged hospitals, knocked out medical refrigeration systems, wiped out internet and phone access, and prevented road access for 100,000 employees.

In addition to all of this, Puerto Rico’s water treatment facilities shut down due to lack of  electricity. This has led to an increase in water-borne diseases, as a quarter of the population was without clean drinking water (8).

If natural disasters continue to become more severe, while nothing is done to improve power systems, the problems exemplified in Puerto Rico will only continue to get worse. Increasing threats from climate change will create more outages to the power system. It is only a matter of time (10).

As noted above, grid outages are not always associated with natural disasters, but when they are, their impacts are compounded. This is because critical services and facilities—emergency shelters, first responders, medical centers, communications and transportation hubs, fueling stations, water treatment plants, refrigerated stores of food and medicines—are subject to widespread power outages too. If these critical facilities are not supported with reliable and long-lasting backup power, they will not be able to deliver emergency services when they are most needed.

Traditionally, backup power for critical facilities like hospitals has been supplied by diesel generators. But several recent disasters have shown diesel generators to be unreliable and prone to failure.

A white paper published by Cummins Power Generation after Hurricane Katrina devastated New Orleans noted that during and after that storm, “many stand-by generating systems located in basements and ground-floor levels failed immediately due to flooding. Generators that were not flooded soon ran out of fuel due to the inability of refueling trucks to deliver diesel fuel. Many other power systems failed to start altogether due to lax maintenance (11).

Similarly, during Superstorm Sandy, nearly 1,000 patients had to be evacuated from New York University’s Langone Medical Center and Bellevue Hospital Center after diesel backup generators failed, plunging the hospitals into darkness. Although both hospitals had located their generators on high floors, critical components like fuel tanks and pumps were in basements, and these basements—despite being reinforced against flooding—were flooded (12).

The U.S. Department of Energy estimated that upwards of 50 percent of diesel generators failed at some time when Hurricane Sandy hit the East (13). The same level of diesel failures has been experienced in Puerto Rico during the continuing blackout after Hurricane Maria hit the island (14).

Fortunately, technology has progressed, and the venerable diesel generator is no longer the best we can do to support critical facilities and vulnerable communities. Battery storage combined with solar PV (solar+storage) provides a flexible and reliable system that scales easily, saves money, and doesn’t rely on fuel deliveries to generate electricity.

Solar+storage systems can be configured to “island” when the grid goes down, meaning they continue to deliver power to their host facility. But unlike diesel backup generators, which sit idle 99 percent of the time, solar+storage systems operate year-round to provide daily benefits, saving money for their owners by lowering electricity bills and, in some cases, generating revenues through the sale of capacity and ancillary services in wholesale electricity markets.

In numerous cases, solar+storage installations have shown that they can pay themselves off over just a few years, well within the lifespan of the equipment (15). By comparison, diesel generators represent a sunk cost that will never deliver cost savings or revenues.

The resiliency performance of solar+storage is not just theory—there are numerous projects with track records to point to. For example, in 2015, a microgrid operated by San Diego Gas & Electric (SDG&E) powered the entire community of Borrego Springs, CA during planned grid maintenance, thus avoiding major service interruptions to the entire community of 2,800 customers (16).

Similarly, a 2012 program to create solar+storage-powered shelters in Florida public schools equipped 112 schools with 10 kW of solar PV and a 40-kWh battery for each, at a cost of $74,000 to $90,000 per school (17). When Hurricane Irma hit Florida in October of 2017, all 29 of the schools that were called upon as emergency shelters were able to self-power using their solar+storage systems. During normal operations, these solar+storage systems lower the schools’ energy costs. Because installed costs for both battery storage and solar PV systems have fallen significantly since 2012, it’s likely that similar systems installed today would be considerably cheaper, and the relative savings greater.

Solar+storage systems can also benefit multifamily affordable housing facilities, which are considered commercial customers by utilities, and often pay extremely high demand charges. Clean Energy Group has analyzed two such facilities in the Boston area, each of which pay more than $80,000 annually in demand charges. A resilient solar+storage system at one of these facilities would add reliable backup power while paying for itself in under six years through demand charge savings alone (18).

Larger solar+storage systems show the same resiliency benefits and cost savings. For example, the Burlington Electric Department in Burlington, VT plans to lease a 1-MW/4-MWh battery to be located at the Burlington International Airport. Combined with an existing 500-kW solar array, the battery should be able to power the airport through an outage with no loss of services to customers. The utility plans to use the battery to reduce its capacity and transmission costs during normal operations, and it expects the system to pay for itself through these savings.

Similar systems have been built in Rutland, VT and Sterling, MA, and more than 100 resilient solar+storage systems are operating or in development across the country (19).

Opportunities and Challenges

If there is good news, it is that with new battery technology, more can be done to protect critical facilities and the communities they serve. Disasters often lead to unexpected and swift technology transformation. The calamitous collapse of Puerto Rico’s electricity system might be the next example of that phenomenon.

Post-Hurricane Maria, several federal officials have acknowledged that energy systems in places like Puerto Rico should be upgraded with more resilient technologies, including solar+storage systems, not with more of the same old fossil-fueled systems that have already failed (20). After the hurricane, Elon Musk, the peripatetic disruptor of multiple industries from autos to space travel, and now the electric power sector, sent Tesla batteries to Puerto Rico to be installed with solar as an emergency measure to provide power to critical facilities (21).

He was not the only one. Sonnen, a German company with manufacturing facilities in the United States, also installed solar+storage systems in Puerto Rico (22) at emergency shelters and schools (23). Their systems can provide critical power for cell phones, lights, and refrigeration.

Beyond these short-term, emergency measures, Musk has said he could repower Puerto Rico’s grid with solar plus battery storage (24), an alternative that would make the island’s electric system more resilient, more locally sourced, more independent, and less costly. And he said he could do it quickly, following his examples in American Samoa (25), Australia (26), and other islands now turning to distributed, onsite solar+storage to power homes and public and commercial buildings.

But deploying these technologies at scale will require more than willing suppliers: it will require a new federal approach to disaster recovery funding. This is starting to emerge in conversations about the relief efforts in Puerto Rico. For example, 19 U.S. senators have requested that future federal funding incorporate these new resilient power principles:

We support efforts to reduce the use of imported diesel to generate electricity, increase the use of renewable generation resources, and modernize the design of the grid and the location of its power generation, which would help make the system less vulnerable to power outages. We are committed to the long-term rebuilding of these power grids in a way that is more resilient to extreme weather events, reducing the potential need for future disaster assistance, and prioritizes rebuilding with technologies like microgrids, utility-scale and distributed renewable energy, and other distributed energy resources. We believe that leveraging federal analytical capabilities within the Department of Energy and the National Labs could greatly improve plans to rebuild these grids. Rebuilding Puerto Rico’s and the U.S. Virgin Island’s electric grids with modern technologies will improve reliability and can help save consumers and taxpayers money, in addition to being a much more prudent use of federal dollars than simply rebuilding the grids back to their pre-storm condition (27).

A greater focus on the potential for local microgrids and resilient power in Puerto Rico is now part of new public discussions about rebuilding the island’s energy system (28). And a recent report from the governors of New York and Puerto Rico recommended a budget of over $1 billion for the installation of hundreds of solar+storage systems in critical facilities on the island (29).

Congress did pass an emergency response bill in early February 2018 that provided up to $2 billion in relief to rebuild the energy systems in Puerto Rico and the Virgin Islands (30). In effect, the law provides $2 billion in federal funding for “enhanced or improved electrical power systems.” There is no clear legislative direction from the language as to how much of the funding is for central station grid hardening and how much is for decentralized microgrids in the form of solar+storage building or community systems.

The budget law also appears to amend The Stafford Act to allow for reconstruction to a higher standard than before. The language states that repairs to “critical services” can be built “to industry standards without regard to pre-disaster construction of the facility or system” (31). This would support the report’s underlying recommendation to “build back better,” although without the accompanying level of funding required.

One might well ask why a calamitous natural disaster is required to prompt needed upgrades in our power systems. If solar+storage is such a great technology, why is it not more widely used? Why are government programs and incentives still needed to move this market?

The answer is that, despite its promise, there are market failures and barriers that need to be addressed to bring this technology to scale.

For example, there are numerous benefits and values that energy storage offers, but that are not easily monetizable (that is, markets do not exist, or if they do, there are barriers to entry). Energy resilience itself is an example of this: widely recognized as a highly valuable attribute or service, there is now no market for it, and hence it is difficult to assign a value to it; and systems that could provide resilient power cannot easily charge for the service. If resiliency is assigned no economic value, its value in any calculation of project economics will be zero, which is the typical default today.

Another valuable service storage can provide is capacity, which is important to keep electric grids stable. Wholesale capacity markets exist in many areas of the country. Behind-the-meter (BTM) battery storage systems can be aggregated as a valuable capacity resource, yet there are very few existing aggregators for this technology; and without aggregators, individual small storage owners cannot meet size thresholds to enter the markets. In this example, valuable services that could be provided cannot reach the existing market.

Major challenges to deploying more solar+storage systems also include the regulatory structures that sometimes hinder the adoption of new technologies, such as energy storage, even when they are superior in performance to older technologies. For example, hospitals are required to install diesel or gas backup generators, and this reduces the likelihood that they will choose to install energy storage for resiliency. So long as this “lock-in” of established, sometimes inferior, technologies persists, it will slow the entry of more innovative technologies like battery storage.

Additionally, the very communities that need resilient power the most are often the least able to afford or finance solar+storage technologies. The most advanced resilient power systems are typically in place to protect facilities involved in financial transactions such as credit card processing centers, in banks, or in data centers where resiliency budgets are virtually infinite, and the costs of even momentary power disruptions run into the millions.

But poor and vulnerable communities rarely have the means to invest in such technologies, which are needed to protect life and health, and cannot easily attract financing. In affordable housing facilities and senior centers, budgets are often too small to support anything better than an old and unreliable diesel generator.

Finally, knowledge barriers for new technologies remain one of the most significant obstacles to adoption. Many customers that might benefit from solar+storage simply do not have the time, expertise or capacity to learn about new energy technologies. For this reason, convening, knowledge sharing, and technical assistance continue to be important activities.

Actions

There are two types of actions needed in this resilient power field: 1) a set of actions for all communities for long-term resilience planning, and 2) those needed for short-term recovery transitions in places such as Puerto Rico that are facing the immediate after-effects of a disaster.

For long-term resilience and resource planning, communities should consider the following.


In general, states and municipalities should assess and address resiliency needs through energy planning, programs, and regulation as well as through disaster planning. To date, few such plans explicitly assess the backup power needs of mission-critical facilities. Planners should investigate new technologies such as solar+storage for use in critical facilities such as emergency response centers, hospitals, and wastewater treatment plants as well as their potential for year-round contributions to the power grid and to reduce consumer electricity costs.


Communities should call for the installation of new, more reliable forms of on-site electricity generation, such as solar+storage, at essential public safety facilities. There should be a focus on healthcare facilities, assisted living communities, schools, emergency shelters and other essential community service facilities where health equipment, refrigeration, communications and the like can be supported with solar+storage systems. This would provide the community with power protection in the next storm. Such a focus would conserve budgets and provide the largest resiliency benefit to communities.


Because battery storage is a relatively new technology and there is little experience with it, states and municipalities need to seek help to understand how the technology works and how to craft policies and programs to support its deployment. This is especially the case with homeland security and emergency management personnel and those managing critical facilities.


To recognize the value of resilience, municipalities and states should provide new customer incentives for clean, resilient power systems (grants and loans, financing, rebates, tax incentives), particularly those systems providing a public good, such as resilience for first responders, affordable housing, or emergency shelters.

A paper released by CEG and NREL found that when the resilience benefits of solar+storage are accurately accounted for, more systems become economically viable (32). Utilities should also be required to increase resiliency, which can be done through portfolio standards, integrated resource plans (IRPs), procurement mandates, and grid modernization initiatives.


States and municipalities should add storage and resiliency adders or carve-outs to existing clean energy programs. The Solar Massachusetts Renewable Target (SMART) solar incentive comes close to this with an energy storage adder and a low-income community adder, but it does not have a resiliency adder (33).


Resilient solar+storage demonstration projects supported by public programs should receive up-front, publicly-funded technical assistance. This ensures that the resulting projects are well designed, work as intended, and provide all the benefits the technology can provide.


For communities facing disaster recovery, the following federal and local actions are needed.


There must be long-term, permanent changes to The Stafford Act. This allows for the more resilient rebuilding of power systems, along the lines of the recent budget bill changes for Puerto Rico. This should be a high priority. The current law requires rebuilding energy systems to the same standard that failed, a requirement that is simply indefensible in this modern environment (34). This more creative use of federal funds for resilient power should serve as a first step to create replicable federal models for future disaster recovery.


FEMA and other federal agencies should pre-position portable solar+storage systems at the ready for deployment in the next disaster. It is critical that the federal government focus more on distributed power systems like solar+storage in both immediate recovery and long-term rebuilding of power systems damaged from disasters.


More coordination is needed for disaster relief efforts. In Puerto Rico, private sector solar+storage companies were ready to help with near term support after the hurricane. But there was no systematic way to link critical facilities in need with the private-sector companies willing to help. In the future, perhaps some form of web-based platform to link these two sectors could be established as part of disaster recovery efforts; if successful, a more permanent platform could be developed for use in future disasters.


After the early-stage recovery systems are installed, there should be a focus on the long-term, market-based strategies for the installation of resilient energy systems in disaster areas, focusing on electricity cost-reduction opportunities and power resiliency needs to drive private-sector installations.

Especially in places like Puerto Rico, this should include workforce training to educate on-island solar installers about how to integrate battery storage into those systems.

If the federal government, states, and communities embrace these actions, perhaps more resilient electricity systems will be built that are able to withstand the next storm.

Works Cited

(1) Alvarez, Lizette, “As Power Grid Sputters in Puerto Rico, Business Does Too,” New York Times, November 15, 2017, (Statement of Mr. Manuel Laboy Rivera, Secretary of Puerto Rico’s Department of Economic Development), https://www.nytimes.com/2017/11/15/us/puerto-rico-economy-jobs.html.

(2) Ibid. (Statement of Miriam Gonzalez, the owner of a restaurant in San Juan shuttered for lack of electricity since September 20, 2017; she had to lay off 15 of her workers when the generators finally failed, and she couldn’t get them repaired.)

(3) Executive Office of The President, “Economic Benefits of Increasing Electric Grid Resilience to Weather Outages,” President’s Council of Economic Advisers, August 2013, https://energy.gov/sites/prod/files/2013/08/f2/Grid%20Resiliency%20Report_FINAL.pdf.

(4) Bartels, Meghan, “Squirrels Have Probably Caused Way More Power Outages Than Cyber-Criminals,” Business Insider, June 17, 2016, www.businessinsider.com/electrical-problems-caused-bysquirrels-2016-6.

(5) Campbell, Alexia Fernández, “5 Things to Know About Puerto Rico 100 Days After Hurricane Maria,” Vox, December 29, 2017, www.vox.com/2017/12/23/16795342/puerto-rico-maria-christmas.

(6) Roig-Franzia, Manuel and Arelis R. Hernández, “Three Weeks Since Hurricane Maria, Much of Puerto Rico Still Dark, Thirsty and Frustrated,” Washington Post, October 11, 2017, www.washingtonpost.com/national/three-weeks-since-hurricane-mariamuch-of-puerto-rico-still-dark-dry-frustrated/2017/10/11/3a263b22-ade7-11e7-9e58-e6288544af98_story.html.

(7) Thomas, Katie, “U.S. Hospitals Wrestle with Shortages of Drug Supplies Made in Puerto Rico,” New York Times, October 23, 2017, www.nytimes.com/2017/10/23/health/puerto-rico-hurricane-mariadrug-shortage.html?_r=0.

(8) Sanders, Linley, “Puerto Rico’s Drinking Water is Spreading Disease Due to Animal Urine and Hazardous Waste,” Newsweek, October 24, 2017, www.newsweek.com/puerto-rico-drinking-water-dirty-692107.

(9) The Stafford Act (www.fema.gov/robert-t-stafford-disaster-relief-andemergency-assistance-act-public-law-93-288-amended) prohibits federal disaster recovery funds from being used to rebuild damaged systems to a higher standard than they were originally. This has inhibited prior attempts to improve electric grids after they are damaged in natural disasters. It appears that Congress has suspended this restriction in the case of new federal recovery funding for Puerto Rico and the U.S. Virgin Islands, where the grid is in desperate need of more resilient upgrades (see Bipartisan Budget Act of 2018, Sec. 20601, p. 46, www.documentcloud.org/documents/4373963-Bipartisan-Budget-Act-of-2018.html#document/p64).

(10) Davis, Michelle and Steve Clemmer, “Power Failure: How Climate Change Puts Our Electricity at Risk—And What We Can Do,” Union of Concerned Scientists, April 2014, www.ucsusa.org/global_warming/science_and_impacts/impacts/effects-of-climate-changerisks-on-our-electricity-system.html#.WgINT-Ze5Zk.

(11) Hamilton, Robert, “Lessons in Emergency Power Preparedness: Planning in the Wake of Katrina,” Cummins Power Generation, Inc. 2007, https://power.cummins.com/sites/default/files/literature/technicalpapers/PT-7006-Standby-Katrina-en.pdf.

(12) “What Caused Generators to Fail at NYC Hospitals?” CBS Interactive, Inc, November 2, 2012, www.cbsnews.com/news/whatcaused-generators-to-fail-at-nyc-hospitals.

(13) DOE has made various presentations at conferences hosted by CEG on this point.

(14) Ibid, n. 1.

(15) Milford, Lewis, Robert Sanders and Seth Mullendore, “Resilience for Free: How Solar+Storage Could Protect Multifamily Affordable Housing from Power Outages at Little or No Net Cost,” Clean Energy Group, October 14, 2015, www.cleanegroup.org/ceg-resources/resource/resilience-for-free.

(16) “Microgrid Powers Borrego Springs to Avoid Major Outage,” Sempra Energy, June 1, 2015, www.sdge.com/newsroom/pressreleases/2015-06-01/microgrid-powers-borrego-springs-avoidmajor-outage.

(17) Dean, James, “Solar Power Helped Shelter Shine Through Irma,” Florida Today, September 24, 2017, www.floridatoday.com/story/news/2017/09/24/solar-power-helped-shelter-shine-throughirma/694322001.

(18) Ibid, n. 15.

(19) Project Map: U.S. Resilient Solar+Storage Projects, Clean Energy Group, www.cleanegroup.org/ceg-projects/resilient-power-project/map.

(20) November 3, 2017 letter from 19 Democratic Senators to OMB Director Mulvaney, www.eenews.net/assets/2017/11/06/document_pm_01.pdf.

(21) Hull, Dana, “Tesla Is Sending Battery Packs to Storm-Ravaged Puerto Rico,” Bloomberg Markets, September 28, 2017, www.bloomberg.com/news/articles/2017-09-28/tesla-is-sendingbattery-packs-to-storm-ravaged-puerto-rico.

(22) Martin, Chris, “Puerto Rico to Get Power Relief from German Microgrid Supplier,” Bloomberg, October 2, 2017, www.bloomberg.com/news/articles/2017-10-02/puerto-rico-to-get-power-relief-fromgerman-microgrid-supplier.

(23) “sonnen Powers Remote School in Puerto Rico Using Solar + Battery Storage Microgrid Technology,” Cision PR Newswire, February 15, 2018, www.prnewswire.com/news-releases/sonnen-powersremote-school-in-puerto-rico-using-solar–battery-storage-microgridtechnology-300599194.html.

(24) Hawkins, Andrew J, “Elon Musk Offers to Rebuild Puerto Rico’s Power Grid Using Solar,” The Verge, October 6, 2017, www.theverge.com/2017/10/6/16438054/elon-musk-puerto-rico-solar-power-tesla.

(25) “American Samoa Island Community Microgrid,” Resilient Power Project, Clean Energy Group, www.cleanegroup.org/ceg-projects/resilient-power-project/featured-installations/american-samoamicrogrid.

(26) “Tesla Mega-Battery in Australia Activated,” BBC, December 1, 2017, http://www.bbc.com/news/world-australia-42190358.

(27) Ibid, n. 20.

(28) Leader, Jared, “Build Back Better for Puerto Rico: Options for the Power Grid,” Smart Electric Power Alliance, December 21, 2017, https://sepapower.org/knowledge/build-back-better-puerto-ricooptions-power-grid.

(29) Press Release, “Governor Cuomo Announces Plan to Rebuild Puerto Rico’s Electric Power Grid,” New York State Governor’s Office, December 11, 2017, www.governor.ny.gov/news/governor-cuomoannounces-plan-transform-puerto-ricos-electric-power-grid-withstandfuture.

(30) Milford, Lewis, “Federal Energy Funds for Puerto Rico, A Small Down Payment,” The Energy Collective, February 15, 2018, www.theenergycollective.com/lewmilford/2423537/federal-energy-fundspuerto-rico-small-payment.

(31)  Bipartisan Budget Act of 2018 (Sec. 20601), https://www.congress.gov/115/bills/hr1892/BILLS-115hr1892enr.pdf.

(32) McLaren, Joyce and Seth Mullendore, “Valuing the Resilience Provided by Solar and Battery Energy Storage Systems,” National Renewable Energy Laboratory and Clean Energy Group, January 30, 2018, www.cleanegroup.org/ceg-resources/resource/valuingresilience-solar-battery-energy-storage.

(33) Solar Massachusetts Renewable Target (SMART), www.mass.gov/solar-massachusetts-renewable-target-smart.

(34) The good news is that the budget bill passed in early 2018 contains such changes for Puerto Rico recovery.

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