Grid Architecture at the Gas-Electric Interface

Significant changes have affected U.S. natural gas markets in the last several years. Environmental regulations and price pressures from newly available natural gas supplies are increasing the reliance of the bulk electric power system on gas-fired generation. This trend is bringing attention to the architectures and coordination of the wholesale gas and electricity markets. Though these physical infrastructures and corresponding markets have existed for decades, closer coordination at the interface between these economically and physically interdependent infrastructures is needed. The changes required to bring about closer coordination of wholesale gas and electricity sectors will bring significant disruption and will require the development of new architectural frameworks as part of the ongoing Grid Modernization effort, which aims to re-engineer the power grid with advanced technology to support many new capabilities. This document describes the emerging issues at the gas-electric interface, the status quo of inter-sector coordination, and the developing regulatory environment. A review of emerging analytics technologies indicates a potential for implementing market-based architectural frameworks for gas-electric coordination.