Opportunities Synergy Natural Gas and Renewable Energy

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3. Part III, on the electric power sector, discusses potential complementarities of natural gas and renewable energy from the perspective of electricity portfolio risk and also presents several current market design issues that could benefit from collaborative engagement. 4. Part IV, on the transportation sector, highlights the technical and economic characteristics of an array of alternative transportation technologies and fuels. Opportunities for natural gas and renewable energy transportation pathways are discussed, as are certain relevant transportation policies. 1.2 PlatformsforPartnership Partnerships between the natural gas and renewable energy industries have not historically been a source of significant dialogue, yet today there are many opportunities for the two industries and other energy stakeholders to jointly develop vibrant and robust hubs of integrated research and development, information exchange, planning, and policymaking. The first step in reaching this goal is laying the groundwork of open dialogue and engagement in all possible arenas within which further collaboration might grow. Opportunities exist for natural gas and renewable energy technologies to be integrated at multiple levels, from tightly coupled hybrid technologies to more loosely coupled integrated system and market designs. The following are a few ideas for potential platforms from which to initiate dialogue: • Hybrid technology opportunities. Hybrid technologies can uniquely capture the respective benefits and minimize drawbacks of individual technologies. Examples include hybrid concentrating solar power (CSP) and natural gas-fired power generation systems; biogas and natural gas co-fired combined cycle gas turbines; natural gas- powered compressed air energy storage (CAES) to store non-peak renewable electricity generation for peak period usage; and alternative transportation fuel production processes that can use both biomass and natural gas as feedstocks. • Systems integration. Broader complementarities of natural gas and renewable energy technologies can be realized through co-optimized system integration. Effective system integration studies require the input and deep understanding of all components to determine ideal system configurations. Additionally, the growing deployment of innovative electricity systems utilizing real-time energy pricing, smart grids, demand response, energy storage, and other emerging technologies further amplifies the need for ever-finer levels of compatibility across system components. Lastly, proactive engagement on planning for and investing in new infrastructure can significantly improve the ability of energy systems to handle changing consumption patterns and future industry trajectories. • Power sector market design. Collaborative development of electricity market structures and regulations, coordination of daily operations, and joint transmission planning can optimize the use and abilities of natural gas and renewable energy technologies in lieu of isolated energy planning that does not maximize potential complementarities of these diverse technology options. 3

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