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| | GRI-91/0439 | | Natural Gas Fired Electric Generating Technology: A Key to the
Adequacy of Electric Generating Capability in North American Electric
Reliability Councils. | |
| Document Type: | Report | | Report Type: | Topical Report | | Authors: | Makovich, Larry | | Corporate Source: | DRI/McGraw-Hill, Energy & Chemical Group, Lexington, MA | | Sponsor: | Gas Research Institute, Chicago, IL | | Pagination: | 113p | | GTI Contract Number: | 1802 | | Project Manager: | Holtberg, Paul D. | | Sector: | Baseline Center |
| Summary | | Development and implementation of an enhanced modeling system
for electricity market analysis is explained. The relevant geographic areas
that must be used for accurate supply and demand modeling and analysis are
defined. There is no national market for electricity in the United States.
Surplus hydroelectric capacity from the Pacific Northwest cannot be made
available in Florida. Any model of U.S. electricity consumer and producer
interaction that does not differentiate by region would produce misleading
results. The expected natural gas-dominated capacity expansion phase in
electricity markets is described. Natural gas fired technologies provide the
lowest busbar cost for many regions' intermediate and peaking dispatch roles.
Environmental concerns over acid rain compliance due to the Clean Air Act
Amendments of 1990 and proposed global warming stabilization measures favor
natural gas fired technologies. The results of the enhanced modeling system are
used to identify the size, timing, and composition of the expected capacity
expansion. The study also examines the effects of this future capacity
expansion on electricity prices. |
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