Microgrid Disaster Resiliency Analysis: Reducing Costs in Continuity of Operations (COOP) Planning

Abstract

The electric grid serves a vital role in the supply chain of nearly all industrial and commercial organizations. A Microgrid infrastructure can provide this service and beneficial non-emergency services including a variety of generation/energy sources. To demonstrate the applicability of microgrids for energy resiliency, we present a microgrid resiliency case study for United Parcel Service’s (UPS) three separate shipping facilities. The goal, to enhance energy security, minimize cost and prevent cascading losses within other related business units. The impacts and consequences of which are quantified in this study using a Mean Failure Cost (MFC) risk assessment measure. MFC accounts for the potential loses to identified stakeholders that may result from a set of identified failures due to a set of identified threats. In this case, our study uses a method we call All Hazards Econometric System (AHES). AHES incorporates the cost of COOP using a strategy that considers the payback period of microgrid installation as compared to other energy delivery strategies.