Managing the Electricity-Gas Interface: Current Environment and Emerging Solutions
Natural gas generators are now the largest producers of electricity in the United States and the largest single end-use consumer of natural gas. Natural gas markets, which first developed to meet commercial and residential heating demands during winter months, are now entwined with electricity markets, which developed when natural gas provided a much lower fraction of total fuel supply for the electricity market. More coordination, both in daily operations and long-term planning, is required to ensure the continued supply of reliable electricity and natural gas. This report provides an overview of the evolution and current state of electricity and natural gas markets in the United States and summarizes the ways in which the two industries interact. The report describes areas warranting greater coordination between the natural gas and electricity industries. This report also discusses the current state of natural gas and electricity models and the need for integrated models that include dynamic simulations of pipeline operations, especially when large amounts of variable generation exists in the electrical system. It outlines current modeling work being done to better simulate operations and planning of both systems.