Tradewinds: Natural Gas A Partner To Renewables In Sustainable Energy Future

29 July 2016: “While they may not be the most perfect couple, cleaner energy sources are set to complement each other in replacing coal, says Michael D Tusiani, chairman emeritus of Poten & Partners “Reducing carbon emissions is a global challenge. Experts are forecasting world energy demand to grow by up to 50% by 2040. More than half of this increase is expected to be in electricity use. Power generation from coal will drop substantially, offset by the rising importance of renewable sources, solar and wind. However, we must be realistic. We are decades away from a hydrocarbon-free world and we will need natural gas more than ever. While utility-scale renewables are becoming more competitive, their costs must fall further to have a substantial impact. Until then, hydrocarbons will be essential to power the world economy. As the most environmentally friendly option, natural gas offers a compelling medium-term solution in the fight against global warming. Despite the rising competitiveness of solar and wind, the sun does not always shine, nor does the wind always blow. As a result, wind and solar-powered plants seldom operate at maximum capacity. New and innovative storage technologies such as advanced battery and supercapacitors may address this variability. They will help balance electricity supply and demand by storing excess energy until needed. But, the commercial barriers — like cost, reliability, safety and regulatory issues — are high. Until they are resolved, utilities must continue to rely on natural gas to meet periods of peak demand and shortfalls in renewable generation. Natural gas is cleaner burning, emitting half the carbon dioxide of coal. It is also abundant, accessible and inexpensive compared to other conventional thermal energies. Natural gas-fired power plants can start up and shut down far faster than coal and nuclear plants, making them better positioned to support renewables. Last year, US natural gas consumption in power generation surpassed coal for the first time and is expected to continue growing. In Europe, the same is true, primarily driven by the decommissioning and retirement of several nuclear and coal-fired plants as well as by the growing supply of liquefied natural gas (LNG). In the rest of the world, natural gas will provide competitive power supplies to the emerging economies of India, Asia and Africa. “But not everyone views natural gas as complementary to renewables. Critics see it as a direct competitor of green technologies. They argue that natural gas usage strengthens dependence on carbon-based fuels. They also claim that building more natural gas infrastructure further locks in this dependency. In addition, critics view natural gas as a major source of methane emissions, another greenhouse gas. A combination of public policies and industry actions will be required to address these concerns. For example, carbon taxes and emission-trading schemes can dampen the demand for fossil fuels, as can incentives for renewable energy. The industry has to adjust to the reality that natural gas is only a partial solution. Commercially, natural gas must accommodate the need for flexibility and variability in electricity loads. Further technological advances will improve natural gas’ ability to back up renewables and enhance grid stability and security. Efforts now underway to minimise methane losses and flaring will also reduce greenhouse gases. The fact is that both natural gas and renewables are here to stay for many years to come. And while they may not be the most perfect couple, it takes two to tango even if they sometimes step on each other’s toes. Collaboration, not competition, between renewables and natural gas will be the key to a sustainable energy future.”