skip to main content


Title: Leader–follower equilibria to examine investment decisions in grid resilience‐enhancing measures
Large‐area, long‐duration power outages are increasingly common in the United States, and cost the economy billions of dollars each year. Building a strategy to enhance grid resilience requires an understanding of the optimal mix of preventive and corrective actions, the inefficiencies that arise when self‐interested parties make resilience investment decisions, and the conditions under which regulators may facilitate the realization of efficient market outcomes. We develop a bi‐level model to examine the mix of preventive and corrective measures that enhances grid resilience to a severe storm. The model represents a Stackelberg game between a regulated utility (leader) that may harden distribution feeders before a long‐duration outage and/or deploy restoration crews after the disruption, and utility customers with varying preferences for reliable power (followers) who may invest in backup generators. We show that the regulator's denial of cost recovery for the utility's preventive expenditures, coupled with the misalignment between private objectives and social welfare maximization, yields significant inefficiencies in the resilience investment mix. Allowing cost recovery for a higher share of the utility's capital expenditures in preventive measures, extending the time horizon associated with damage cost recovery, and adopting a storm restoration compensation mechanism shift the realized market outcome toward the efficient solution. If about one‐fifth of preventive resilience investments is approved by regulators, requiring utilities to pay a compensation of $365 per customer for a 3‐day outage (about seven times the level of compensation currently offered by US utilities) provides significant incentives toward more efficient preventive resilience investments.  more » « less
Award ID(s):
1832290
PAR ID:
10483322
Author(s) / Creator(s):
;
Publisher / Repository:
Risk Analysis
Date Published:
Journal Name:
Risk Analysis
Volume:
43
Issue:
2
ISSN:
0272-4332
Page Range / eLocation ID:
280 to 307
Format(s):
Medium: X
Sponsoring Org:
National Science Foundation
More Like this
  1. Earthquakes cause outages of power transmission system components due to direct physical damage and also through the initiation of cascading processes. This article explores what are the optimal capacity investments to increase the resilience of electric power transmission systems to earthquakes and how those investments change with respect to two issues: (1) the impact of including cascades in the investment optimization model and (2) the impact of focusing more heavily on the early stages of the outages after the earthquake in contrast to more evenly focusing on outages across the entire restoration process. A cascading outage model driven by the statistics of sample utility data is developed and used to locate the cascading lines. We compare the investment plans with and without the modeling of the cascades and with different levels of importance attached to outages that occur during different periods of the restoration process. Using a case study of the Eastern Interconnect transmission grid, where the seismic hazard stems mostly from the New Madrid Seismic Zone, we find that the cascades have little effect on the optimal set of capacity enhancement investments. However, the cascades do have a significant impact on the early stages of the restoration process. Also, the cascading lines can be far away from the initial physically damaged lines. More broadly, the early stages of the earthquake restoration process is affected by the extent of the cascading outages and is critical for search and rescue as well as restoring vital services. Also, we show that an investment plan focusing more heavily on outages in the first 3 days after the earthquake yields fewer outages in the first month, but more outages later in comparison with an investment plan focusing uniformly on outages over an entire 6-month restoration process.

     
    more » « less
  2. It is useful to quantify electrical distribution system resilience based on historical performance. This paper systematically extracts resilience curves from historical utility outage data, extracts resilience metrics such as duration, average recovery rates, and maximum number of simultaneously outaged components, and examines the statistics of these resilience metrics for small, medium, and large events. The resilience metrics and their typical variabilities are expected to be helpful in predicting and bounding the likely outcomes of future resilience events. For example, we can calculate the restoration time that will be achieved with 95% confidence. 
    more » « less
  3. Community resilience in the face of natural hazards involves both a community's sensitivity to disaster and its potential to bounce back. A failure to integrate equity into resilience considerations results in unequal recovery and disproportionate impacts on vulnerable populations, which has long been a concern in the United States. This research investigated aspects of equity related to community resilience in the aftermath of Winter Storm Uri in Texas which led to extended power outages for more than 4 million households. County-level outage/recovery data was analyzed to explore potential significant links between various county attributes and their share of the outages during the recovery/restoration phase. Next, satellite imagery was used to examine data at a much higher geographical resolution focusing on census tracts in the city of Houston. The goal was to use computer vision to extract the extent of outages within census tracts and investigate their linkages to census tracts attributes. Results from various statistical procedures revealed statistically significant negative associations between counties' percentage of non-Hispanic whites and median household income with the ratio of outages. Additionally, at census tract level, variables including percentages of linguistically isolated population and public transport users exhibited positive associations with the group of census tracts that were affected by the outage as detected by computer vision analysis. Informed by these results, engineering solutions such as the applicability of grid modernization technologies, together with distributed and renewable energy resources, when controlled for the region's topographical characteristics, are proposed to enhance equitable power grid resiliency in the face of natural hazards. 
    more » « less
  4. Large-scale damage to the power infrastructure from hurricanes and high-wind events can have devastating ripple effects on infrastructure, the broader economy, households, com- munities, and regions. Using Hurricane Irma’s impact on Florida as a case study, we examined: (1) differences in electric power outages and restoration rates between urban and rural counties; (2) the duration of electric power outages in counties exposed to tropical storm force winds versus hurricane Category 1 force winds; and (3) the rela- tionship between the duration of power outage and socioeconomic vulnerability. We used power outage data for the period September 9, 2017–September 29, 2017. At the peak of the power outages following Hurricane Irma, over 36% of all accounts in Florida were without electricity. We found that the rural counties, predominantly served by rural electric cooperatives and municipally owned utilities, experienced longer power outages and much slower and uneven restoration times. Results of three spatial lag models show that large percentages of customers served by rural electric cooperatives and municipally owned utilities were a strong predictor of the duration of extended power outages. There was also a strong positive association across all three models between power outage duration and urban/rural county designation. Finally, there is positive spatial dependence between power outages and several social vulnerability indicators. Three socioeconomic variables found to be statistically significant highlight three different aspects of vulnerability to power outages: minority groups, population with sensory, physical and mental disability, and economic vulnerability expressed as unemployment rate. The findings from our study have broader planning and policy relevance beyond our case study area, and highlight the need for additional research to deepen our understanding of how power restoration after hurricanes contributes to and is impacted by the socioeconomic vulnerabilities of communities. 
    more » « less
  5. The development of new technologies is increasing transportation electrification and electric vehicles (EVs) are expected to become even more popular in coming years. High EV adoption rates can increase the potential to use EVs as an energy resource and operate in vehicle-to-grid (V2G) and vehicle-to-home (V2H). This paper focuses on the resilience analysis of using EVs and roof-top solar photovoltaic systems (PVs) to provide power support in network microgrids (MGs) experiencing an outage due to extreme weather conditions. To determine the effectiveness of using EVs and PVs as backup energy resources, a set of resilience metrics are evaluated for different cases and duration. Simulation results show that the management of EVs and PVs in residential networked MGs could provide power support for several hours during the restoration of a distribution system experiencing an outage. 
    more » « less