Power Plant – Gas Grid Dependence

This thesis contributes new knowledge about the effect of the gas grid on the power generation sector and how this effect could inform grid generation resource planning.
In chapter 2, I explore how reliability event reporting standards for operators of the natural gas grid compare to the requirements for power generators. Informed by a quantitative comparison of the numerical thresholds of reporting for gas grid and power generator failure events, I recommend a new reporting requirement for the gas grid that will bring it into line with the requirements for gas-fired power plant operators.
In chapter 3, I examine why gas-fired power plants in the United States have failed because of fuel shortages. I analyze six years of data from a database of power plant failures called the Generating Availability Data System (GADS). Using pipeline scheduling data, I identify areas of the natural gas grid where enough pipeline space may be available so that increased priority fuel contacts could help mitigate fuel shortages at gas-fired power generators.
Chapter 4 examines the economics of distributed fuel storage as a mitigation option for gas shortages at power plants in areas of the U.S. where pipeline space was not historically available. I estimate the additional costs required for New England gas-fired generators to install either distributed compressed natural gas (CNG) storage or oil dual fuel capabilities as fuel security measures at power plant sites. I construct fuel shortage mitigation supply curves using the cost estimates I develop. I also calculate simple payback periods of mitigation options using the cost estimates and foregone energy and capacity revenue stream estimates. I compare the costs of fuel storage options to those of battery storage and demand response incentives.