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Brownbag Seminars: Batteries and wildfires: do power outages cause residential battery uptake?

Seminar
Alastair
Tuesday, November 29, 2022, 12:30 pm – 1:30 pm
Speaker

Abstract: Residential household batteries are increasingly being installed and are frequently marked as providing backup power to households. We study the effect of large power outages in California, frequently caused by wildfires, on the installation of residential batteries. Using two-way fixed effects and event study models, we find preliminary evidence that battery installations increase substantially following large power outage events. These results suggest consumers are responsive to grid reliability concerns, and may provide a revealed preference way to estimate the Value of Lost Load. Residential household batteries are increasingly being installed and are frequently marked as providing backup power to households. We study the effect of large power outages in California, frequently caused by wildfires, on the installation of residential batteries. Using two-way fixed effects and event study models, we find preliminary evidence that battery installations increase substantially following large power outage events. These results suggest consumers are responsive to grid reliability concerns, and may provide a revealed preference way to estimate the Value of Lost Load.