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Natural gas utilities are struggling to stay relevant in the clean energy transition.
Once championed as a “bridge” fuel between coal and clean power, in recent years it’s become increasingly clear that natural gas isn’t so climate friendly. The fuel is primarily made up of planet-warming methane, a far more potent greenhouse gas than carbon in the near term — and a new study out this week shows methane emissions in the U.S. are likely much higher than scientists previously estimated. A big chunk of those emissions come from leaks in fossil fuel infrastructure.
So with another new study finding methane is responsible for as much as 30% of rising temperatures the world has seen so far, it’s no wonder that climate advocates and some state and local leaders are looking for alternatives to gas heating, power generation and appliances.
Take Massachusetts, where in December state utility regulators ordered a transition off natural gas, and left both electric utilities — which use natural gas-fired power plants to generate electricity — and gas utilities — which supply gas for heating and appliances — to coordinate on a transition that doesn’t leave low-income residents behind.
Minnesota state regulators haven’t gone as far as Massachusetts, but they did recently ask the state’s three biggest gas utilities to consider what they’ll look like in 10 years. Unknowns are mounting for gas utilities, and planning like this could help regulators make sure gas utilities aren’t spending ratepayer money on infrastructure investments that would go to waste in a net-zero future.
— Kathryn Krawczyk
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More clean energy news
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🕳️ Can you dig it? The U.S. Energy Department lays a roadmap for geothermal power generation in a report that calls for exploring new wells, lowering power production costs and expanding the industry’s workforce. (E&E News)
🌊 An offshore wind milestone: The country’s first commercial-scale offshore wind farm is now sending power to the New York grid. (Associated Press)
💰 Stuck with subsidies: President Biden campaigned on ending fossil fuel industry subsidies, but has so far failed to break a century-old trend and keep them out of the federal budget. (New York Times)
🚗 EVs are getting cheaper: Electric vehicle prices have plummeted over the last two years, with the average purchase price now only $5,000 higher than the average for gasoline-powered vehicles. (Washington Post)
🏭 Powering up: More data centers, manufacturing facilities and other power-hungry industries are driving up power demand and making it even harder to replace fossil fuels with clean energy. (New York Times)
⚡ It’s go time for the grid: The Biden administration is expected to unveil a grid expansion plan this spring, but experts say the president would need at least a second term to fully roll out the transmission buildout. (E&E News)
📉 New hope for hydrogen: An analysis concludes that blue and green hydrogen could be cost competitive with natural gas by 2030, but that meeting national demand might consume two-thirds of the country’s current renewable electricity. (Utility Dive)
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