A new report from Navigant Research examines how the natural gas industry is engaging in distributed system solutions, including demand response (DR) and non-pipes solutions (NPS), providing case studies and actionable recommendations for market players.
Electric utilities and grid operators have relied on DR programs for decades to address supply- side issues. As natural gas utilities grapple with pipeline constraints, some are adopting a similar approach to manage load and deliver additional benefits to customers. According to the report, the natural gas industry is adopting
distributed systems solutions such as DR and NPS.
“DR and NPS have been less prevalent in the natural gas industry but changing market factors have increased interest in the practices,” says Brett Feldman, research director with Navigant Research. “While only a handful of utilities have undertaken them to date, these innovative programs demonstrate the promise of cleaner, more customer-friendly, and potentially less expensive means of alleviating pipeline constraints.”
Natural gas market players can take advantage of this trend by adjusting current practices. According to the report, to ensure success, utilities should keep their focus on the customer to encourage adequate program participation, while DR providers should recognize the need for new technical expertise. Technology vendors should find ways to package electric and gas solutions together, and gas marketers should look to DR as an opportunity, not a problem.
The report, Natural Gas Demand Response and Non-Pipes Solutions as Alternatives to Pipeline Expansion, 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.