In our December 2022 newsletter, Dileep Prabhakar, Regional Sales Director, shared details and insight into the natural gas market and how New England can increase resiliency during scarcity. Enjoy these highlights from his article below, and view the entire newsletter article here.
At the beginning of 2020, natural gas was plentiful and readily available. Even in New England, where pipeline constraints push natural gas and electricity markets higher, the region could keep those risks primarily in check due to ample supply. However, in March 2020, COVID brought the world to a standstill, and natural gas hit lows not seen in 20 years. Because of mass re-openings in 2021, demand has severely outpaced supply leading to our current situation. Assuming New England cannot get pipeline infrastructure built and continues to be vulnerable to LNG shipment costs, what can the region do to lessen our reliance on natural gas?
Transition to nuclear power. Nuclear Power can produce a lot of electricity by splitting atoms with no carbon emissions and significantly reduce the region’s natural gas reliance.
Continue development of renewable energy resources. Hydrogen, solar, and wind must become more mainstream on a macro and end-user level.
Limit consumption during times of peak usage through demand response. Battery Storage is a great way to achieve this without clients having to shut down equipment.
Invest in the grid and powerlines. The PowerGrid needs to be updated and set up for the renewable future and the current infrastructure. In addition, the grid will need to be upgraded and secured nationwide to handle the changing infrastructure.
Convert to heat pumps at both the commercial and residential levels. Heat pumps are a great way to control the climate in winter and summer.
Each of the above supports the goal of carbon neutrality and the desire to move away from fossil fuels.