Gas generation and wind power: A review of unlikely allies in the United Kingdom and Ireland

No single solution currently exists to achieve the utopian desire of zero fossil fuel electricity generation. Until such time, it is evident that the energy mix will contain a large variation in stochastic and intermittent sources of renewable energy such as wind power. The increasing prominence of wind power in pursuit of legally binding European energy targets enables policy makers and conventional generating companies to plan for the unique challenges such a natural resource presents. This drive for wind has been highly beneficial in terms of security of energy supply and reducing greenhouse gas emissions. However, it has created an unusual ally in natural gas. This paper outlines the suitability and challenges faced by gas generating units in their utilisation as key assets for renewable energy integration and the transition to a low carbon future. The Single Electricity Market of the Republic of Ireland and Northern Ireland and the British Electricity Transmission Trading Agreement Market are the backdrop to this analysis. Both of these energy markets have a reliance on gas generation matching the proliferation of wind power. The unlikely and mostly ignored relationship between natural gas generation and wind power due to policy decisions and market forces is the necessity of gas to act as a bridging fuel. This review finds gas generation to be crucially important to the continued growth of renewable energy. Additionally, it is suggested that power market design should adequately reward the flexibility required to securely operate a power system with high penetrations of renewable energy, which in most cases is provided by gas generation

US access to the global LNG market

This paper discusses US participation in the global liquefied natural gas (LNG) market. Although recent US production of natural gas is up, Canadian production is decreasing and LNG imports by the United States have been on the rise. The current US portfolio of LNG importers is described and the future prospects for each of the current importers are discussed. Changing conditions in the global marketplace have resulted in higher prices and more recent declines in US importation of LNG. With temporary increases in US domestic supply and transportation costs rising, the United States will find it increasingly difficult to compete with other global consumers of LNG. Overcapacity of regasification and high prices are pushing the industry into increased integration. Under these conditions, it seems unlikely that consumers of LNG will experience price declines. In addition, because of global reserve distribution, increased reliance on LNG may jeopardise even further US energy security. Copyright 2008 The Author. Journal compilation 2008 Organization of the Petroleum Exporting Countries.