1. Non-pipeline alternatives for gas system decarbonization are diverse and reflect different energy policy goals.
2. Spending on gas distribution infrastructure has increased in the last decade, leading to potential stranded costs in the future.
3. Integrated energy planning incorporating interactions between gas, electricity, and customer energy systems is essential for achieving net zero goals cost-effectively and equitably.
Gas distribution infrastructure spending has increased in the past decade in the US, but this financial commitment could lead to stranded assets as gas use declines. Non-pipeline alternatives, similar to non-wires alternatives for electricity grids, are emerging solutions that can reduce the need for new gas system construction or upgrades.
These alternatives focus on reducing greenhouse gas emissions and should be a priority for gas utilities seeking to optimize and decarbonize their infrastructure. Examples of non-pipeline projects include National Grid’s transition to geothermal heating systems in upstate New York and Pacific Gas & Electric’s decommissioning of gas transmission pipes. European countries like Switzerland and the Netherlands are also engaging in municipal clean heat planning.
Integrated energy planning, incorporating interactions between gas, electricity, and customer energy systems, will be crucial for achieving cost-effective and equitable climate goals. These projects have shown diverse energy policy goals and the need for unique solutions for different energy systems.
Funding for these projects can come from various sources while protecting long-term affordability for customers. However, convincing all customers to switch to all-electric equipment is not a scalable strategy under current regulations. Overall, non-pipeline alternatives present opportunities for utilities to meet emissions goals and other societal objectives, with unique challenges and opportunities for each jurisdiction.