3Q 2018

Natural Gas Demand Response and Non-Pipes Solutions as Alternatives to Pipeline Expansion

Demand response (DR) in the electricity sector has been a common practice for utilities and grid operators for decades. Non-wires alternatives (NWA) have come to fruition more recently. DR and non-pipes solutions (NPS) have been less prevalent in the natural gas industry, but changing market factors have increased interest in the practices. While only a handful of utilities have undertaken them to date, these innovative programs demonstrate the promise of DR and NPS to provide cleaner, more customer-friendly, and potentially less expensive means of alleviating pipeline constraints.

Utilities, vendors, and marketers can take advantage of market trends and adjust current practices to cultivate natural gas DR and NPS. The status quo in the energy industry is changing quickly. The electric side has years of experience looking at alternatives to traditional supply-side solutions such as DR and has recently expanded to broader NWA initiatives. Today, the gas side is getting engaged in these initiatives, which will lead to a more sustainable, efficient energy system.

This Navigant Research report discusses how market trends are forcing utilities to readdress their approach to gas system planning and consider natural gas DR and NPS. The study examines how the gas industry is following electric’s footsteps in engaging distributed system solutions and provides case studies of natural gas DR and NPS programs. Navigant Research also provides detailed and actionable recommendations for utilities, DR providers, technology vendors, and gas marketers to address the new opportunities afforded by natural gas DR and NPS.

Pages 14
Tables | Charts | Figures 2

  • What are natural gas demand response (DR) and non-pipes solutions (NPS)?
  • What are the market drivers incentivizing these solutions to expand in the natural gas industry?
  • What factors may inhibit the expansion of natural gas DR and NPS?
  • What new technologies and program models are enabling natural gas DR and NPS to increase their penetration in the market?
  • What should utilities, DR providers, technology vendors, and gas marketers do to cultivate these solutions?

  • Demand response (DR) providers
  • Smart thermostat vendors
  • Building controls and HVAC vendors
  • Utilities
  • Gas marketers
  • Government energy agencies
  • Investor community

Spark

Context

Recommendations

Defining New Industry Terms

Natural Gas Demand Response

Non-Pipes Solutions

The Gas Industry Is Following Electric’s Footsteps in Engaging Distributed System Solutions

Natural Gas DR

Why Gas DR Now?

Gas DR Value Is Hard to Assign

Historical Types of Gas DR

Comparing Electric DR to Gas DR

Natural Gas DR Case Studies

National Grid

Southern California Gas

NPS Case Study

Con Edison

Natural Gas DR and NPS Will Change the Planning Process for Utilities and Offer New Opportunities

Natural Gas Utilities

DR Service Providers/Aggregators

Technology Vendors

Gas Retail Competitive Suppliers/Marketers

Utilities, Vendors, and Marketers Must Adjust Current Practices to Cultivate Natural Gas DR and NPS

Natural Gas Utilities

DR Service Providers/Aggregators

Technology Vendors

Gas Retail Competitive Suppliers/Marketers

Tables and Figures

  • NPS Development Process
  • Comparing Electric DR to Gas DR

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