Carrie Zalewski, Vice President of Markets and Transmission at the American Clean Power Association, emphasizes the importance of improving the connection between gas and electric systems to ensure a reliable energy supply.
For many years, effectively coordinating gas and electric systems has been a key focus in maintaining the reliability of the electric grid. The recent Winter Storm Elliott has heightened this focus even more, highlighting the pressing need for better cooperation as initiatives like NARUC’s Gas-Electric Analytical and Reliability Standards gain traction. A promising solution already emerging in U.S. wholesale markets is energy storage.
Energy storage plays a vital role by capturing surplus energy when it is available and affordable, and then supplying it back to the grid when it’s most needed.
The Coordination Challenge Between Gas and Electric Systems
Coordinating these two energy systems presents unique challenges. The natural gas system has strict real-time balancing requirements, where pipelines must carefully manage the flow of gas to match supply with demand while ensuring safe pressure levels. During cold weather, natural gas needs to flow efficiently to heat homes and businesses as well as to fuel power plants, which support the electric grid.
However, pipeline capacity is limited for addressing both heating and electricity generation needs simultaneously, causing these systems to compete for available resources. The operation of the gas market is characterized by long-term contracts, granting specific rights to use pipeline capacity. In contrast, the electric grid operates on a just-in-time basis, managed by regional grid operators who ensure that electricity generation aligns with real-time demand.
Power generators typically submit bids for energy delivery without the long-term contracts prevalent in the gas market. A recent study by the Northeast Power Coordinating Council revealed that many gas-fired generators in the area do not have assured gas transportation rights, which can lead to scenarios where electricity generation faces cuts before gas is redirected to heating needs.
Moreover, there is a reliance between gas pipelines and the electric grid; compressor stations that transport gas depend on electricity to function. If electric generation is primarily from gas power plants and the gas supply is cut, it hampers the operation of these compressor stations, which can further disrupt electricity generation.
Energy Storage as a Solution
Energy storage can bridge the gap between the gas and electric systems, offering a level of flexibility and reliability that each system can’t achieve alone. The previously mentioned study likewise highlighted that while securing dual-fuel capabilities via liquid fuel storage might enhance reliability, it remains limited in case of prolonged cold spells.
Energy storage can directly address this issue by storing energy independent of vulnerable fuel supplies, thus boosting grid resilience during challenging times. Here are some ways it contributes:
- Greater Operational Flexibility: Natural gas plants can take time to adjust output levels, whereas energy storage can respond to demand changes almost instantly.
- Optimizing Natural Gas Use: Energy storage allows for stored gas-generated electricity to be used during instances of gas scarcity, which helps manage costs and maintain reliability.
- Quick Deployment for Immediate Needs: Constructing new gas pipelines takes a long time and significant investment. In contrast, energy storage solutions can be quickly built, helping to address immediate reliability challenges.
Insights from Recent Cold Weather Events
The effectiveness of energy storage in improving coordination between gas and electric systems was evident during extreme weather conditions like Winter Storm Elliott. Reports from the Electric Reliability Council of Texas show how energy storage helped maintain the balance of the grid, preventing extensive outages. Similar positive outcomes were observed in California, where energy storage proved vital for managing grid stability during summer heat waves. These experiences highlight how energy storage can be a flexible solution for mitigating the risks of reliability issues during extreme events.
Future Considerations
As the energy landscape continues to evolve, integrating energy storage solutions into gas-electric coordination efforts is increasingly essential. To this end, regulators and grid operators should create policies that incentivize the use of energy storage while also simplifying interconnection procedures and compensating storage resources for their reliability contributions. While natural gas will remain a crucial part of the energy mix in the foreseeable future, incorporating energy storage can provide the flexibility and resilience needed to better handle extreme weather impacts, protect consumers from fluctuating energy costs, and ensure a more reliable electric grid moving forward.