Originally published for customers March 8, 2024.
Grid operators across the country are expecting electricity demand to increase significantly moving forward. According to a recent Grid Strategies report, peak demand is projected to increase by almost 5% by the end of 2028. Since natural gas-fired generation will be key in meeting this demand, we looked at more than a dozen interstate pipelines across the country currently offering some form of firm, no-notice service.
What’s the issue?
Renewable energy sources, namely solar and wind, are characterized by intermittency and are heavily dependent on weather conditions. The fluctuating nature of sunlight and wind patterns often leads to inconsistent power output and results in challenges meeting demand.
Why does it matter?
Unreliable output, especially in the winter when sunlight is minimal and electricity demand is high, will lead to the need for additional generation with little-to-no notice in advance.
What’s our view?
Dispatchable sources of electricity generation will be key in filling these gaps. By offering firm transportation options such as no-notice and peaking services, natural gas pipelines can help ensure adequate electricity supply will be available as soon as it is needed.
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