The majority of new generating capacity projected in the next 10 years will rely on natural gas as its primary fuel, according to a recent assessment by the North American Electric Reliability Corporation (NERC).

The assessment identified several key issues, including:

·         Key differences exist between the power and natural gas industries. While the electric industry is somewhat functionally bundled, the natural gas industry is structurally unbundled.

·         Increased coordination and communication are needed. Information sharing is needed for the reliable operation between both industries to ensure reliability of the bulk power system.

·         An ample gas supply is expected. In terms of supply, almost all future natural gas growth comes from the electric sector. Shale gas will likely make a significant contribution to the U.S. supply portfolio.

·         Pipeline expansion to accommodate the electric sector. Pipeline infrastructure planning must take into account the long-term growth of gas-fired generation, as more pipeline capacity ultimately will be needed.

To download the “2011 Special Reliability Assessment: A Primer of the Natural Gas and Electric Power Interdependency in the United States” assessment, click here.