Andrew R. Thomas is Executive-in-Residence in the Maxine Levin College of Urban Affairs at Cleveland State University, where he leads research for the Energy Policy Center. His research focuses on electricity regulation and markets, microgrids, fuel cells and oil and gas development. He is also an oil and gas commissioner for the State of Ohio. He received his J.D. from Loyola University, where he was a law review editor.
This presentation relates the results of an investigation into market conditions for a proposed commercial microgrid in downtown Cleveland, Ohio, as well the potential for additional jobs, income, and tax revenues that might accompany such an enterprise. Because microgrids can reduce or eliminate power disruptions, the proposed microgrid could position Cleveland to capture growth among those industries that experience relatively greater losses when power outages occur. The improved quality, reliability, resiliency, and security associated with a microgrid could offer a locational advantage in attracting companies for which a power interruption is particularly costly.
The Study Team from Cleveland State and Case Western Reserve Universities identified industries that might have an appetite for microgrid services using two strategies. The first strategy was to undertake a “Value of Lost Load” (VOLL) analysis that measured the value of lost production associated with a power outage. The study team estimated this value of lost opportunity in terms of dollars-per-kilowatt-hour for hundreds of industries, categorized according to the North American Industry Classification system.
The second strategy was to identify industries interested in resilient power though a national survey of energy professionals working for commercial businesses. The Study Team commissioned a market research firm to survey individuals who directly impact the energy procurement decisions at their respective companies. The survey yielded industry sectors for companies interested in resilient power, and the “all in” price such companies would be willing to pay to locate within a microgrid offering 99.999% uptime.
Based upon the projected costs of power from the proposed microgrid, the Study Team used the VOLL and survey strategies to identify industries that are likely to be attracted to the microgrid, and how many jobs are likely be created therefrom. The results of this analysis will be presented by the Study Team.
