What causes natural gas fuel shortages at U.S. power plants?

Gerad M. Freeman, Jay Apt and John Moura

Energy Policy, 2020, vol. 147, issue C

Abstract: Using 2012–2018 power plant failure data from the North American Electric Reliability Corporation, we examine how many fuel shortage failures at gas power plants were caused by physical interruptions of gas flow as opposed to operational procedures on the pipeline network, such as gas curtailment priority. We find that physical disruptions of the pipeline network account for no more than 5% of the MWh lost to fuel shortages over the six years we examined. Gas shortages at generators have caused correlated failures of power plants with both firm and non-firm fuel arrangements. Unsurprisingly, plants using the spot market or interruptible pipeline contracts for their fuel were somewhat more likely to experience fuel shortages than those with firm contracts. We identify regions of the Midwest and Mid-Atlantic where power plants with non-firm fuel arrangements may have avoided fuel shortage outages if they had obtained firm pipeline contracts. The volume of gas needed by power plants to fuel the lost MWh in those regions was only a small fraction of the total volume delivered to potentially non-essential commercial and industrial pipeline customers in those regions and modest prices there at the times when power plants failed indicate gas was available.

Keywords: Correlated failures; Fuel assurance; Fuel security; Generating availability data system; Pipeline failures; Pipeline curtailment (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:147:y:2020:i:c:s0301421520305243

DOI: 10.1016/j.enpol.2020.111805

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