Repositioning gas in the power generation mix

Abstract

Since the turn of the century, gas has been highlighted as the transition fuel to a lower emissions world, and, in 2011, the International Energy Agency published a special report entitled ‘Are we entering the golden age of gas’, which indicated that gas use could rise by over 50% to provide more than 25% of world energy demand by 2035. Even though gas use has risen in tandem with the increase in renewable energy, over the past decade, coal has been the fastest growing fuel because developing countries choose cheap power to provide their growing energy needs. Gas has been, and continues to be, subject to a green, cheap squeeze; squeezed by cleaner renewables on the one hand, and cheaper coal on the other. This paper will look at the impact that increasing amounts of renewable energy has on existing power generation and supply systems, and provide insights into the potential range of outcomes in emission levels, and the need to not only discuss renewable energy target, but to also understand the total energy mix, and the need to reposition gas from a transition fuel to the natural long-term companion of renewables.