Dive Brief:
- Instead of competing, there are a range of areas where natural gas-fired generation and renewable energy can be used together profitably, according to a report by the Joint Institute for Strategic Energy Analysis (JISEA).
- Examples of potential synergies include joint electric and natural gas transmission corridors, blending renewable and natural gas generation, co-financing and residential smart hybrid energy systems.
- Changing pricing so that it more accurately reflects the value of services instead of the commodity underpinnings could boost opportunities for capturing renewable energy and natural gas synergies. For example, rewarding demand response resources not just for hours used but for the characteristics of its availability, the report said.
Dive Insight:
The JISEA report aims to spur a look at how renewables and natural gas can work together in new business models. “The business models that capitalize on both renewable energy and natural gas can access new revenue streams, including wholesale market opportunities for the distribution edge (e.g., demand response aggregation), upstream and downstream arbitrage opportunities from shared infrastructure, and energy services that offer the customer resiliency, reliability, and reduced costs,” the report said.