New study from National Grid probes energy planning, non-pipeline alternatives
A new study by National Grid and RMI seeks to better understand how integrated energy planning (IEP) and non-pipeline alternatives (NPAs) are most effectively implemented.
Integrated energy planning (IEP) and non-pipeline alternatives (NPAs) are solutions that utilities and regulators are deploying for a future less reliant on fossil gas and more dependent on clean energy resources.
For this study, National Grid and RMI analyzed nine NPA case studies from the United States and Europe to better understand how they are implemented and the challenges they present in scaling up these projects.
The study examined several projects, including National Grid’s effort to transition some upstate New York customers to geothermal heating systems, California utility PG&E’s work to decommission 22 miles of gas transmission pipe by converting customers from gas, and decommissioning entire neighborhoods off the gas system over a period of 10 years in Europe.
The findings feature insights that can help guide policymakers and regulators in navigating the transition from fossil fuels to clean electrification. Overall, there are eight key findings.
1. Current NPA projects reflect diverse energy policy goals and energy system characteristics, necessitating unique solutions to meet each jurisdiction’s energy needs.
2. There’s no one-size-fits-all cost-benefit analysis for utilities to apply to NPAs to analyze impacts on consumers, on meeting emissions goals, and on achieving other societal goals.
3. There’s a range of criteria to weigh when prioritizing NPAs, including gas asset risk and hydraulic feasibility, electric capacity, benefit-cost criteria, customer propensity for new technology adoption, and community factors.
4. NPA projects can be funded through a series of different sources while protecting ratepayers’ long-term affordability, including federal, state, and local funding, and electric and gas rates.
5. To conduct IEP that achieves net-zero goals as cost-effectively and equitably as possible, regulatory support is needed to enable cross-utility data sharing and decision-making, and to invest in new tools and capabilities.
6. Utility and municipality partnership may be a key element of NPA projects and localized IEP to ensure alignment, build community support, and incorporate local priorities in project planning.
7. Individual customer persuasion to reach 100% participation is not a scalable NPA strategy.
8. Policy change will be needed to evolve the utility business model and obligation to serve, while retaining the opportunity for cost recovery as part of a transition away from gas.
National Grid provides energy to more than 20 million people through its networks in New York and Massachusetts.
