Increasing levels of solar and wind in the power production system need to be firmed by natural gas.
The Renewables Electricity Futures Study, a new comprehensive report from the National Renewable Energy Laboratory, concluded that “variable generation levels of up to nearly 50% of annual electricity can be accommodated when a broad portfolio of supply- and demand-side flexibility resources is available at a level substantially higher than in today’s electricity system” and that broad portfolio should include “sufficient capacity on the system for planning reserves” and “demand-side interruptible load, conventional generators (particularly natural gas generators), and storage.”
What is unknown is how current, unprecedentedly low natural gas prices will affect the growth of solar and wind.
Erik J.A. Swenson, a partner in the Washington law firm of Fulbright & Jaworski, presented on U.S. natural gas policy at the recent American Wind Energy Association (AWEA) annual conference and argued that making the export of liquid natural gas (LNG) easier will drive the market price up and grow solar and wind.
In full disclosure, Swenson acknowledged that Fulbright represents clients that want to export LNG.
“Wind and solar combined with natural gas present a good combination of greenness and cost,” Swenson said. “Wind and solar are intermittent sources of generation and gas is the natural firmer.”