A new report by the North American Electric Reliability Corp. highlights serious concerns about the gas and power systems in New York and New England, particularly during extreme cold weather. The report indicates a lack of spare pipeline capacity in these areas, which could severely threaten energy reliability.
The study conducted by the Northeast Power Coordinating Council reveals that the natural gas infrastructure in both regions is fully utilized during periods of extreme cold. This means that the available supply may not be sufficient to meet the demands placed on it.
According to NPCC, many gas-fired power plants in the region do not have firm transportation agreements, making them vulnerable to disruptions in gas supply during peak heating seasons when pipelines are congested.
NERC’s President and CEO, Jim Robb, emphasized the situation, stating, “During winter extremes, the electric system in the Northeast depends heavily on a reliable natural gas supply. When rare situations arise, reliability can be put at serious risk.”
The report modeled three-day cold snaps but warned that longer periods of extreme cold would exacerbate issues in the gas and oil storage systems in these regions, potentially impacting electricity reliability if oil supplies cannot be replenished quickly enough.
Liquefied natural gas (LNG) continues to be vital for maintaining power reliability in New England. In the absence of LNG supplies, power generators may need to rely on oil to meet energy demands.
To address these challenges, the Northeast Gas Association suggested that wholesale market design may need to change. They believe that enhancing natural gas delivery infrastructure would be one of the most cost-effective solutions to ensure that gas-fired generation can reliably meet demand during extreme weather conditions.
The Northeast Gas Association was part of the study’s steering committee, working alongside the New York Independent System Operator, ISO New England, and NERC.
NERC called for stakeholders to urgently adopt risk mitigation strategies based on the report’s findings. They are also conducting similar assessments in other regions, encouraging relevant parties to include these evaluations in their planning strategies.