Opportunities Synergy Natural Gas and Renewable Energy

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1 InitiatingCollaborativeEngagement 1.1 Introduction Natural gas and renewable ener1gy have been touted as key elements of a transition to a cleaner and more secure energy future. Still, the specific roles, values, and merits of natural gas and renewable energy in relation to long-term goals of energy security and climate change mitigation have been, and continue to be, debated. In the energy security arena, both natural gas and renewable energy are building blocks for a robust domestic energy economy. However, there are currently large, but not insurmountable, barriers to harnessing natural gas and renewable energy to meaningfully reduce our national reliance on imported oil for transportation. These include the current state of the petroleum- dependent transportation sector and a lack of clarity and consensus on how many alternative pathways to pursue and which ones are best. Early adopters are testing alternatives and will provide valuable experience, but full deployment of one or more alternative fuels will require broader structural shifts. Regarding climate change, the Intergovernmental Panel on Climate Change (IPCC) reports that to avoid the largest negative impacts,2global greenhouse gas emissions would need to decline by 50%–85% from 1990 levels by 2050. Some have argued that, given the difficulty in meeting this goal, an exclusive focus on natural gas would distract from and impede progress toward the ultimate goal of large-scale deployment of a suite of low-carbon technologies, includi3ng renewable energy, energy efficiency, nuclear energy4, and carbon capture and storage. Others have offered roadmaps for how cost-5effective deployment of natural gas and low-carbon technologies to meet emissions targets might occur, while many more have provided insightful analyses and framed relevant issues. Much of the current discourse is narrowly focused on either natural gas or renewable energy as distinctly separate components or concentrates on the compet6itive impacts of one over the other. This paper attempts, instead, to build upon embryonic efforts to more closely examine the nexus of natural gas and renewable energy and explore untapped complementarities and potential synergies on a number of levels. Use of natural gas and renewable energy has grown significantly in recent years. The two forms of energy appear complementary in many respects: natural gas electricity generation enjoys low capital costs and variable fuel costs, while renewable energy generators have higher capital costs but generally zero fuel costs, excluding bioenergy (see Table 1 for selected examples). Natural gas is a key input for corn starch-based ethanol fuel production, and new transportation infrastructure and technology experiences could enable use of both natural gas and renewable fuels in vehicles. Both forms of energy support a future orientation toward a built environment that utilizes local energy supply and use, including distributed generation and home vehicle fueling. Despite the complementarities and potential for greater coordinated use, the natural gas and renewable energy industries have at times viewed each other as direct competitors, especially in the power sector. As of mid-2012, the primary competitive impact of inexpensive natural gas has been over 300 terawatt-hours (TWh) of fuel switching from coal- to natural gas-fired electricity 1

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