@article{5c0c106b27b84ab7a397e68a876a4983,
title = "Could on-site fuel storage economically reduce power plant-gas grid dependence in pipeline constrained areas like New England?",
abstract = "In the Northeastern United States, natural gas supply constraints have led to periods when gas shortages have caused up to a quarter of all unscheduled power plant outages. Dual fuel oil/gas generators or local gas storage might mitigate gas supply shortages. We use historical power plant operational and availability data to develop a supply curve of the costs required for generators to mitigate fuel shortage failures in New England. Based on 2012–2018 data, we find that the historical fuel shortages at approximately 2 GW worth of gas-fired capacity could be mitigated using on-site fuel storage. For comparison, New England's average reserve margin was 1.7–2.8 GW over our sample period. Oil dual fuel plants would recoup their investment if compensated with a reliability adder of $3−7/MWh during their normal operations, while $7−16/MWh would incentivize using on-site, compressed natural gas storage. We estimate that the capital expenses associated with the fuel storage options would be less expensive than installing battery backup for resource adequacy at current battery prices.",
author = "Freeman, {Gerad M.} and Jay Apt and Seth Blumsack and Thomas Coleman",
note = "Funding Information: This research was supported in part by the Carnegie Mellon Climate and Energy Decision Making Center (CEDM) , formed through a cooperative agreement between the National Science Foundation and CMU ( SES-0949710 ) and in part by the Electric Power Research Institute . We thank Noha Abdel-Karim, David Calderon, Sean Donovan, Elliott Nethercutt, Donna Pratt, Lee Thaubald, and Matthew Varghese of NERC and Sinnott Murphy of Carnegie Mellon for help accessing, processing and working with the GADS database. We also thank Ron Fluegge, Luke Lavin, Sean Smillie, Emily Barrett and Granger Morgan for helpful discussions. Funding Information: This research was supported in part by the Carnegie Mellon Climate and Energy Decision Making Center (CEDM), formed through a cooperative agreement between the National Science Foundationand CMU (SES-0949710) and in part by the Electric Power Research Institute. We thank Noha Abdel-Karim, David Calderon, Sean Donovan, Elliott Nethercutt, Donna Pratt, Lee Thaubald, and Matthew Varghese of NERC and Sinnott Murphy of Carnegie Mellon for help accessing, processing and working with the GADS database. We also thank Ron Fluegge, Luke Lavin, Sean Smillie, Emily Barrett and Granger Morgan for helpful discussions. No funder had a role in the study design, collection, analysis, and interpretation of the data, in the writing of the report, or in the decision to submit the article for publication. Publisher Copyright: {\textcopyright} 2021 The Authors",
year = "2021",
month = jun,
doi = "10.1016/j.tej.2021.106956",
language = "English (US)",
volume = "34",
journal = "Electricity Journal",
issn = "1040-6190",
publisher = "Elsevier Inc.",
number = "5",
}