As renewable energy gains traction, natural gas peaking plants play a pivotal role in ensuring grid reliability and supporting the transition to cleaner power sources. As we head towards a more renewable energy future, these specialized facilities, often called peaker plants, provide quick start power to balance the grid when demand is high or generation is low. Natural gas peaking plants also contribute to the renewable energy transition by providing system stability when renewable energy production is unpredictable. In this article, we’ll look at what natural gas peaking plants are, how they are used in the energy market, and their integration with renewables.
What Are Natural Gas Peaking Plants and How Do They Work?
Natural gas peaker plants are power generation facilities that operate during peak electricity demand. Unlike baseload plants that run 24/7, peaking power plants are used to supplement the grid when demand is high or supply is low. When renewables, like solar and wind, can’t satisfy consumer demand due to their intermittent nature, peaker plants bridge the gap by ramping up quickly to meet peak demand.
The Types of Peaking Power Plants
Peaking power plants can use various fuels and technologies. Some of the most common peaker plants are:
Natural Gas Turbines
Natural gas turbine plants use turbines powered by natural gas or biogas to generate electricity. In these power plants, the gas is ignited to spin the turbine and generate electricity quickly. They are great for efficiency and quick start applications when demand is rising quickly. These plants are often deployed by grid system operators when demand is peaking, and the base-load power plants do not have enough power scheduled to balance the system.
Diesel and Petroleum-Derived Liquid Engines
Diesel and petroleum engine power plants use diesel oil or other liquid fuels to spin turbines and create power. These plants are often found in areas with no natural gas pipeline infrastructure; however, their carbon emissions are much greater than natural gas turbine plants.
Biogas Plants
Using renewable gas as a fuel source, biogas power plants are a greener option than traditional natural gas peaking plants. Due to the green nature of the biogas, these power plants are becoming increasingly popular in the energy transition.
Hybrid Systems
Hybrid power plants combine battery storage with natural gas turbines to improve flexibility and reduce fossil fuel usage. These plants are often dispatched by system operators during short-term spikes in demand. Excess power is stored in a battery energy storage system to help balance grid frequency and reduce the risk of blackouts.
The Pros and Cons of Natural Gas Peaking Plants
Natural gas peaker plants play an important role in the stability of the electrical system. Being a much cleaner source of energy than oil or coal, these plants have grown in popularity among all RTOs and ISOs. Let’s look at the pros and cons of peaker plants.
Pros:
- Quick Start-Up: Peakers can start in minutes and are perfect for sudden spikes in system demand.
- Grid Stability: Peaker plants keep the grid stable during periods of high demand or when renewable energy production dips.
- Flexible Fuels: Natural gas, renewable natural gas, biogas, and other fuels can be used depending on the infrastructure and availability.
- Effective: They are not as inexpensive to operate as baseload plants but are very cost-effective at preventing system outages during emergencies.
Cons:
- Higher Costs: Because peaker plants are used sparingly during periods of high demand, they have higher costs per kilowatt hour than baseload plants.
- Environmental Impact: Peakers running on natural gas, diesel oil, or petroleum-derived liquids emit greenhouse gases and pollutants.
- Fuel Dependency: Peaker fossil fuel dependence on natural gas and other fuels hinders long-term decarbonization strategies.
Natural Gas Peaking Plants Globally and in The US
Globally, natural gas peaking plants are an integral part of grid management. In the U.S., they are used by regional transmission operators (RTOs) and independent system operators (ISOs) to keep the power system reliable. Globally they help to ensure the reliable integration of renewables. Let’s explore how these plants operate around the world.
U.S.
Peakers are concentrated in deregulated energy markets, such as New England (ISO-NE) and Pennsylvania (PJM), and in highly renewable energy areas like California (CAISO) and Texas (ERCOT). They are used during extreme weather events like heatwaves or winter storms when consumer demand on the electric system peaks.
Europe
In Germany and the UK, peakers support the integration of wind and solar while keeping the grid stable. Since solar and wind energy are predicated on the sun shining and the wind blowing, their intermittent nature can be detrimental to proper demand planning. Peaker plants in Europe bridge the gap between generation sources and supply power when renewables cannot.
Developing Countries
In areas of high energy demand, peaking power plants are a bridge to meet short-term needs while infrastructure is being developed. In emerging energy markets, natural gas power plants are slowly replacing oil-fired plants as they are cleaner to run and more cost-effective.
Gas Peaker Plants in Renewable Energy Transition
The renewable energy transition needs clean, reliable, and flexible power generation to support the intermittent nature of wind and solar. Natural gas peaking plants are the backup for these intermittent renewables and deliver power when the sun isn’t shining or the wind isn’t blowing. Here is how peaker plants are supporting the renewable energy transition.
1. Filling the Gap Between Demand and Supply:
Peakers run during periods of low renewable output, like at night or when there’s calm weather. They balance the electric system and prevent outages. System operators rely on these plants to ensure that supply and demand are in continual balance.
2. Supporting Renewable Energy Integration:
The variability of solar and wind makes peakers essential to the overall energy market. Their quick ramp-up capabilities complement renewable energy projects by providing stability and bridging short-term energy gaps.
3. Decarbonization Strategies
Though fossil fuel-based, natural gas peakers can run on cleaner-burning natural gas, biogas, or renewable natural gas to minimize their environmental impact. With carbon capture and utilization (CCU), they can fit into broader decarbonization plans.
4. Innovation
Hybrid systems that pair natural gas turbines with battery storage are becoming more common. These systems combine the quick response of batteries with the long duration of natural gas turbines to increase grid flexibility and reduce emissions.
5. Energy Security
Peakers ensure energy security during extreme weather events and emergencies. They can run on multiple fuels, including petroleum-derived liquids and biogas, making them a reliable backup for the grid.
Want To Learn More?
Natural gas peakers are part of the modern energy mix. They provide flexibility, reliability, and quick-start support for renewable energy integration and grid stability. As we move to a cleaner energy future, they will continue to play a key role, running on lower carbon fuels and hybrid systems.
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