Contracts for transportation capacity, competing uses of natural gas and grid reliability during winter storms

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• Chiara Lo Prete, Pennsylvania State University
• Monday 25 November 2024, 13:00-14:00
• Cambridge Judge Business School, W4.03.

If you have a question about this talk, please contact Jacque Woolley.

The increasing dependence of the electric power sector on natural gas poses vulnerabilities caused by competition for scarce pipeline capacity that are especially pronounced when both heating and electricity needs spike. During extreme cold weather events in the U.S., pipeline deliveries to distribution companies serving heating customers receive the highest priority of service, while natural gas-fired generators may have their service curtailed regardless of contractual priority. This creates grid reliability challenges that are expected to become more prominent, as electricity consumption in U.S. residences grows while natural gas consumption for space heating declines through 2050. In her talk, Chiara Lo Prete will discuss this pressing problem and present modeling results quantifying the potential benefits of prioritizing gas to power plants during winter emergencies in the Northeastern U.S.

This talk is part of the EPRG Energy & Environment Seminars series.

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• Cambridge Judge Business School, W4.03

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