Navigating the future of gas: Strategic and tactical approaches for gas utilities
Natural gas utilities have a key role to play in a cleaner energy future but must adapt as the industry shifts toward decarbonization and increased electrification. At our Gas Innovation fireside chat at the 2024 CLEAResult Energy Forum, industry leaders discussed strategies to navigate these shifts. The session covered balancing grid resilience and decarbonization, integrating with electric programs, and responding to policy changes. Panelists shared practical tactics to help gas utilities remain a valuable part of the energy mix. Industry leaders recently discussed strategies to navigate these shifts, focusing on balancing grid resilience and decarbonization, integrating with electric programs, and responding to evolving policy requirements. The experts shared practical tactics to help gas utilities continue to provide value as part of the energy mix, even as decarbonization efforts accelerate.
Coordinating efforts to strengthen grid resilience
Natural gas is critical for heating and electricity generation, and it is a key resource for filling energy gaps during peak demand. Some utilities have leveraged funding to identify residential and commercial natural gas backup generators, enabling a more targeted response during outages and extreme weather events. Past events, like heatwaves that strain the electric grid, have shown how these resources can help maintain service and support electric infrastructure. Ensuring these generators are available and operational can help utilities handle similar challenges as electricity demand rises.
Strategic approaches for successful program implementation
Gas utilities need clear strategies that support decarbonization and equity goals while aligning with electric utilities. Updated strategies include shifting to dual-fuel offerings, which allow for collaboration with electric utilities in underserved areas. Coordination efforts, like joint program implementation for residential customers, simplify the process and expand available options and education.
In some areas, commercial customers share the cost of backup generators with their utility. Gas utilities build relationships with businesses by offering financial incentives and covering gas costs during use. This arrangement provides businesses with resilience during power outages and offers electric utilities load reduction during peak events.
Educating customers and repurposing infrastructure
Educating customers about the benefits of natural gas is essential for informed decision-making. Transparent discussions around costs, savings and energy options ensure that customers understand how natural gas can fit into a decarbonizing grid. Gas utilities should also look for ways to repurpose existing infrastructure, such as using natural gas as a fuel source for fuel cells to power critical facilities like data centers. This approach not only reduces costs but helps gas utilities contribute to grid resilience.
By adopting these strategies, gas utilities can maintain their relevance in the energy market and play a crucial role in supporting a more resilient and decarbonized grid.
Check out more lessons learned from our 2024 CLEAResult Energy Forum conference.
