The majority of new generating capacity projected in the next 10 years will rely on natural gas as its primary fuel, according to a recent assessment by the North American Electric Reliability Corporation (NERC).
The assessment identified several key issues, including:
· Key differences exist between the power and natural gas industries. While the electric industry is somewhat functionally bundled, the natural gas industry is structurally unbundled.
· Increased coordination and communication are needed. Information sharing is needed for the reliable operation between both industries to ensure reliability of the bulk power system.
· An ample gas supply is expected. In terms of supply, almost all future natural gas growth comes from the electric sector. Shale gas will likely make a significant contribution to the U.S. supply portfolio.
· Pipeline expansion to accommodate the electric sector. Pipeline infrastructure planning must take into account the long-term growth of gas-fired generation, as more pipeline capacity ultimately will be needed.
To download the “2011 Special Reliability Assessment: A Primer of the Natural Gas and Electric Power Interdependency in the United States” assessment, click here.
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