Implications of greater reliance on natural gas for electricity generation
Download
1 / 10

Implications of Greater Reliance on Natural Gas for Electricity Generation - PowerPoint PPT Presentation


  • 75 Views
  • Uploaded on

Implications of Greater Reliance on Natural Gas for Electricity Generation. Study Identifies Challenges from Large Switch to Gas by Electric Utilities. Natural Gas Demand & Supply Level Unprecedented Infrastructure Requirements: Interregional Pipeline & Underground Gas Storage

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about ' Implications of Greater Reliance on Natural Gas for Electricity Generation' - cindy


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript

Study identifies challenges from large switch to gas by electric utilities
Study Identifies Challenges from Large Switch to Gas by Electricity GenerationElectric Utilities

  • Natural Gas Demand & Supply Level Unprecedented

  • Infrastructure Requirements: Interregional Pipeline & Underground Gas Storage

  • Operational Challenges

  • Retrofitting Means Replacement

    • Permitting challenges

  • What’s It All Cost?

  • Download Complete Study at:

    https://appanet.cms-plus.com/files/PDFs/ImplicationsOfGreaterRelianceOnNGforElectricityGeneration.pdf

Implications of Greater Reliance on Natural Gas


Many rules driving electric utilities to gas
Many Rules Driving Electricity GenerationElectric Utilities to Gas

Implications of Greater Reliance on Natural Gas


Gas demand varies depending on resource mix but more gas required
Gas Demand Varies Depending on Resource Mix, BUT More Electricity GenerationGas Required

Implications of Greater Reliance on Natural Gas


How much gas would we need is there sufficient supply
How Much Gas Would We Need & Is there Sufficient Supply? Electricity Generation

  • To Convert Existing Coal-Fired Capacity to Natural Gas:

    14.1 Tcf per year

  • Is There Enough Supply?

    • Not without Shale-deposited supply and/or much higher prices

      • Even with Record-level proved reserve additions in 2007, there were not many new discoveries

    • Objections to hydraulic fracturing create uncertainty

      • Uses lots of water

      • Contamination concern if fracing liquids migrate

      • Seismic activity

      • Claims that emissions may be higher

Implications of Greater Reliance on Natural Gas


Additional Natural Gas Pipeline Capacity Needed if all Existing Coal Generation Switched to Natural Gas

Implications of Greater Reliance on Natural Gas


Infrastructure pipelines not evenly distributed each pipeline has different delivery capacity
Infrastructure: Existing Coal Generation Switched to Pipelines Not Evenly Distributed & Each Pipeline has Different Delivery Capacity

Implications of Greater Reliance on Natural Gas


Natural gas storage geography matters
Natural Gas Existing Coal Generation Switched to Storage: Geography Matters

  • Storage needed due to large variation in Electric Generation load and therefore Natural Gas burn

  • Must take all gas ordered from pipeline & gas must be ordered the day prior to use

  • Best storage is salt cavern because it can be filled and emptied multiple times (“high deliverability”)

  • Adding storage is not easy due to geology requirements and other factors

Implications of Greater Reliance on Natural Gas


Not every state has access to natural gas storage
Not Every State has Access to Natural Gas Storage Existing Coal Generation Switched to

Implications of Greater Reliance on Natural Gas


Total cost close to 750 billion
Total Cost Close to $750 Billion Existing Coal Generation Switched to

Excludes higher

commodity costs to

expand gas supply, or

local pipeline and

LDC expansion or higher MDQ costs.

Implications of Greater Reliance on Natural Gas


ad