According to a recent report that analyzes the short and long-term relationship between natural gas and renewable resources, the path to resource adequacy and low-carbon generation in the Texas electric power market will need the co-development and integration of both natural gas and renewable energy resources. The report focused on the Electric Reliability Council of Texas (ERCOT) electricity market and was conducts by economists with The Brattle Groupa nd prepared by the Texas Clean Energy Coalition (TCEC).
“Low-priced natural gas and clean renewable resources are complementary, not competing, resources to displace other fuels over the long term. Coordinated development of both will lead to a win-win for Texas and the environment,” said former state Sen. Kip Averitt and TCEC chairman. The report was sponsored by the Cynthia and George Mitchell Foundation. Mitchell, a pioneer in the Texas oil and gas industry, laid the groundwork for the shale gas revolution that is taking place across the U.S.
The first of a two-part study, “Partnering Natural Gas and Renewables in ERCOT” explains how gas and renewables can be complements, depending on the time frame of analysis as well as a number of additional factors. These factors include items such as the long-run trajectory of gas prices, renewable technology costs, electricity market rules and complementary policies affecting all power generation technologies.
The study explains that wind and solar power are inexpensive to dispatch because they have no fuel cost, and there is no charge for the sun to shine or the wind to blow. Read More