New report explains how natural gas and renewable energy complement each other in Texas power system

The path to resource adequacy and low-carbon generation in the Texas electric power market will likely require the co-development and integration of both natural gas and renewable energy resources for years to come, economists at The Brattle Group find in a new report prepared for the Texas Clean Energy Coalition (TCEC).

The report analyzes the short- and long-term relationship between natural gas and renewable resources in the Electric Reliability Council of Texas (ERCOT) electricity market, which covers 85 percent of the state's electric load. 

California is actively pursuing a policy of integrating large amounts of renewable generation into the electricity grid. Electricity system planning activities require renewable net short estimates to determine the amount of new renewable generation capacity that must be built in state and/or delivered from out‐of‐state sources to meet the Renewables Portfolio Standard target, to evaluate the electricity infrastructure requirements for integrating new generation additions, and to identify market mechanisms that may need to be modified to provide the ancillary services that would be required to maintain reliable system operations.

A new report presents an annual update to the forecasted amount of new renewable generation needed to comply with California energy policy goals.

A global shift to a low-carbon economy requires countries to rapidly scale up their investments in renewable energy. China is the leading global investor in renewable energy infrastructure and Chinese companies are increasing their overseas investments in renewable energy. China’s massive domestic and overseas investments in solar and wind industries can potentially benefit other countries in need of such investments. Chinese energy investment in the United States notably has accelerated over the past five years, with Chinese companies investing heavily in traditional energy as well as in alternative energy.

Wind Capacity Growth

Yingzhen Zhao from the World Resources Institute (WRI) recently presented WRI’s recent research on the trends and drivers of China’s overseas investment in the solar and wind industries . With an eye on China’s potential role Shifting to a low-carbon economy will require current emitting countries and projected future emitters to rapidly scale up their investments in renewable energy. In recent years, major emerging economies like China, India, and Brazil have been catching up with leading developed country investors in Europe and the United States. By some estimates, China is already the leading global investor in renewable energy infrastructure, and is increasing its overseas investments in renewable energy, particularly solar and wind. If China achieves its goal of sourcing 15 percent of its energy mix from renewables by 2020 and 30–45 percent by 2050, renewable energy will become closer to a mainstream energy resource within the country. Cost reduction incurred in this process would benefit not only China, but also the rest of the world.

A power-to-gas (P2G) unit installed by E.ON in Falkenhagen in eastern Germany injected hydrogen into the natural gas system for the first time as part of a function test. During the test, which lasted three hours, the unit produced 160 cubic meters of hydrogen, which was injected into the gas pipeline system. It marks the first time E.ON has successfully implemented all stages of the process, from receiving electricity to injecting hydrogen.

The P2G unit receives its power from a nearby wind farm. The power runs electrolysis equipment that transforms water into hydrogen which is injected into the regional gas transmission system. The hydrogen becomes part of the natural gas mix and can be used to generate power or heat. 

Before 2013, Renewable Identification Number (RIN) prices for corn ethanol, which can be used to meet only the overall target for biofuels under the Renewable Fuel Standard (RFS) program, had consistently ranged between $0.01 per gallon to $0.05 per gallon, and were substantially lower than biodiesel RIN prices, which can meet multiple targets. At the start of 2013, corn ethanol RIN prices began to increase sharply, reaching highs around $1.00 per gallon in early March and for the first time approached levels similar to biodiesel RIN prices.

Source: Oil Price Information Service
Note: January 2, 2013 = American Taxpayer Relief Act of 2012 and $1 per gallon biodiesel tax credit becomes law.
Note: February 28, 2013 = Deadline for obligated refiners and importers to submit 2012 compliance demonstration reports.