Natural Gas Markets and Grid Reliability
Contracts for transportation capacity, competing uses of natural gas and grid reliability during winter storms
The increasing dependence of the electric power sector on natural gas poses vulnerabilities caused by competition for scarce pipeline capacity that are especially pronounced when both heating and electricity needs spike. During extreme cold weather events in the U.S., pipeline deliveries to distribution companies serving heating customers receive the highest priority of service, while natural gas-fired generators may have their service curtailed regardless of contractual priority. This creates grid reliability challenges that are expected to become more prominent, as electricity consumption in U.S. residences grows while natural gas consumption for space heating declines through 2050. In her talk, Chiara Lo Prete will discuss this pressing problem and present modeling results quantifying the potential benefits of prioritizing gas to power plants during winter emergencies in the Northeastern U.S.
Speaker
Chiara Lo Prete is Associate Professor of Energy Economics in the John and Willie Leone Family Department of Energy and Mineral Engineering at The Pennsylvania State University. Her research centers on the economics of energy markets, focusing on the areas of competition and design of electricity markets, natural gas market design to enhance grid reliability, geopolitics and energy security, and the impacts of environmental regulations on electric power generation. She and her team develop mathematical models and apply empirical methods to study electricity market structures for resource adequacy and wind energy integration, interdependent natural gas and electric power systems, the weaponization of electricity trade, emission leakage and cross-product manipulation. Before joining Penn State, Lo Prete was a Ziff Environmental Fellow at Harvard University. She earned a B.A. in Economics (summa cum laude) from LUISS University, an M.A. in Energy Economics from the Scuola Mattei, and a M.S. and Ph.D. in Geography and Environmental Engineering from The Johns Hopkins University.
About Energy Futures Lab
Energy Futures Lab is one of seven Global Institutes at Imperial College London. The institute was established to address global energy challenges by identifying and leading new opportunities to serve industry, government and society at large through high quality research, evidence and advocacy for positive change. The institute aims to promote energy innovation and advance systemic solutions for a sustainable energy future by bringing together the science, engineering and policy expertise at Imperial and fostering collaboration with a wide variety of external partners.